High demand for rental units in Victoria has driven the average cost up, meaning Victoria has now surpassed Toronto for the second most expensive rental market in Canada, according to the Canada Mortgage and Housing Corporation (CMHC). A two-bedroom unit in Victoria now costs an average of $1,993, compared to Toronto which is close behind with an average price of $1,963, the CMHC says in its report.
The CMHC looks at the costs of rented units, so long-term rented units that had prices set before large spikes can bring down the average. Shiva Moshtari Doust, lead economist for Vancouver and Victoria with CMHC, says there is less pressure on rent in Toronto, leading to the switch. “Vancouver has been an expensive market, and now Victoria is standing as a second right,” Moshtari Doust said. “Comparing that to the Toronto market, we’ll see that demand in the Toronto market is decreasing a lot and probably bringing a little bit of lower pressure for the rent.” The CMHC says new rental buildings contributed to an increase in costs, especially in Langford. Unit turnover also contributed to the spike. “Turnover remained above the CMA average in the Langford and Sidney areas. Renters living in these areas are likely to be renting at a rate closer to market rents and have fewer incentives to stay in place,” the report says. Greater Victoria vacancy rate on the rise The vacancy rate for purpose-built rental units in Greater Victoria has exceeded the national average, relinquishing its long-standing hold as one of the tightest markets in the country, according to the CMHC. The vacancy rate across the country sits at an average of 2.2 per cent, while Victoria’s has grown to 2.6 per cent. However, the vacancy rate for condominiums remains the same from January 2024, and is below the national average. Nationally, this vacancy rate sits at 0.9 per cent, while Victoria’s is 0.1 per cent. Average rent prices for the market have also increased 3