Greater Victoria’s supply of purpose-built rental housing already under construction will add more than 6,000 net new units through 2029, according to Citified’s tracking of south Island real-estate development activity, while additional construction starts planned for later this fall through 2027 will further pad that figure before the end of the decade.

 

 

The current pipeline of active inventory represents the entire housing spectrum, such as top-end market rentals, mid-market rentals, government-backed units, and low barrier housing supply. It does not, however, include condominium units purchased by investors for the purpose of adding strata-titled suites to the full-time rental supply.

 

Downtown Victoria’s share of the 6,000-unit total is significant, representing more than one-quarter of all rental construction activity at-present, or some 1,600 homes. A further 2,000 units are under construction elsewhere in the City of Victoria and throughout the urban core of the Capital Region (comprised of Saanich, Oak Bay, Esquimalt and the eastern half of View Royal).

 

On the West Shore, 2,300 units are underway between Sooke and Langford, making Victoria’s western suburbs the most active new-build rental zone on a per-capita basis. On the Peninsula, fewer than 100 rental homes are currently under construction.

 

Since 2015, Citified’s data shows that approximately 15,000 purpose-built rental homes have been completed through September of 2025, region-wide, at an average of around 1,400 units per year over 11 years (including 2015). The current pipeline is slightly higher at 1,500 units per year, not including aforementioned anticipated starts. The total inventory of delivered product and currently underway rental homes is 21,000 units.

 

The in-stream growth in housing supply through the end of the 2020s comes as rental vacancy rates throughout Greater Victoria have edged upwards and rental rates have shown sustained downward pressure, particularly among smaller units like studio and one-bedroom layouts. Since 2023, landlords have begun introducing incentives like free parking or storage spaces, a free month of rent on 12 or 13 month leases, and other perks that include travel or transportation offers.

 

Although rental rate statistics can be difficult to precisely calculate due to factors like volatile sample sizes, unrepresentative sample sizes, incentives in lieu of lower monthly rental rates and unpublicized rental lease-up activity among large rental management firms, the consensus throughout the region is rental rates reached a peak in 2024 and 2025, and are in a period of pricing plateau, or are experiencing downward adjustment. The price trajectory is further nuanced by unit size and location, and unit applicability to multi-tenant scenarios where housing costs can be shared between multiple renters, or multi-income families. In other words, in the current market, two-bedroom and larger units are generally experiencing more rate stability.

 

 

The outlook by Victoria’s rental industry for 2026 is at minimum a continuation of the status quo, with likely further leaning on incentives and price concessions by landlords to attract and retain tenants in an increasingly competitive market, especially among market-priced new-builds representing the highest rental rates.

 

Average regional south Island new lease rental rates absent of incentives, according to multiple industry sources, are in the realm of $1,600 for a studio apartment, $2,000 for a one-bedroom suite, $2,500 for a two-bedroom suite, and $3,300 for three bedrooms. Deviations by unit age, on-site amenities, location, finishings and views can significantly impact market value and demand, and deviate from the cited rates. C