British Columbia’s multi-family market continues to show resilience despite rising supply, economic headwinds and short-term pressure on rents and vacancy rates, says a new Cushman & Wakefield report.

The sector is moving through a pricing adjustment phase that is narrowing the gap between buyers and sellers, supporting a gradual recovery in investment activity, according to C&W. Development challenges are also constraining future supply, creating conditions for long-term growth and presenting opportunities for investors to acquire well-located, income-producing assets at more attractive pricing levels.

As supply expands and market constraints ease, investors are increasingly shifting their focus toward cash flow fundamentals and more normalized capitalization rates.

Land demand remains weak as current pricing and elevated construction costs continue to challenge development feasibility, particularly for concrete projects where buyer demand and bidding activity remain limited. However, select long-term investors continue to pursue well-priced opportunities.

Declining asset values are also creating increased loan-to-value pressure, with some sellers approaching or exceeding 100% loan-to-value positions. In response, developers are increasingly using incentives to strengthen rent rolls and support valuations.

The condominium-development pipeline is slowing as weak presale activity and growing inventory levels contribute to project pauses, cancellations and condo-to-rental conversions. As Connect has reported, a number of investors have purchased discounted bulk-condo portfolios s part of a strategy to sell them individually when the market improves.

High construction costs continue to undermine project economics, with many newly completed properties now valued below replacement cost, reducing incentives for new development.

At the same time, record rental construction completions in 2025 and continued elevated deliveries through 2026 are expected to maintain downward pressure on rent growth and support tenant-friendly market conditions.

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