Surrey sees big bump in residential vacancy rate

A push to add more purpose-built rentals is improving the vacancy rate for renters in Surrey, according to a new federal report.

Canada Mortgage and Housing Corporation released its latest rental market report and it shows the percentage of rental units available to be rented has risen more than one per cent in the past year to 5.6%.

“Rental stock also grew significantly in Surrey, but leasing difficulties increased,” said the report. “Our market intelligence suggested that these units were facing heavy competition from recent condominium apartment completions and conversions. Additionally, the mix of studio and 1-bedroom units was less desirable to renters. As a result, vacancies in Surrey are expected to be higher in the coming years.”

The rental stock is expected to continue to grow in Surrey as several development projects are being converted to rentals only due to the crashing condo market in recent years.

The City of Surrey is also pursuing several rental-only projects on city land, including partnering with Apcon Group on the design, construction, operation and maintenance of a 430-unit rental building on the city’s land at 10975 – 126A St.

More rentals available have a positive impact on rents. Overall, the average rent in Surrey has dropped about $150 to $1,853 in the past year, according to CMHC.

“Rent growth slowed across Metro Vancouver after several years of high increases,” said the report. “A softer rental market due to both increased supply and lower demand led to the lowest same-sample percentage rent change in 20 years. This rate was lower than the province’s maximum allowable rent increase of 3% in 2025, indicating many landlords weren’t raising rents for existing tenants. This trend was clearest in centres facing lower demand outside of the inner core.”

After years of decline, rental turnover increased across all unit types in 2025, continuing the trend from 2024. This reflected a softer rental market, with more options and competitive pricing for renters.

Turnover was highest in newer concrete and luxury buildings, where rents were higher, giving tenants less reason to stay. Operators of those buildings proactively increased non-cash incentives to retain existing tenants.

Federal policy changes affecting non-permanent residents, such as temporary workers and students, softened demand in the region. Higher youth unemployment and slow wage growth also reduced demand for studio and 1-bedroom units. Many young professionals were choosing co-living with roommates or their parents.

British Columbia’s population growth fell sharply in recent quarters, due to a substantial decline in net international migration. B.C. saw 3 consecutive quarters of outflow of non-permanent residents, most of whom were renters.