The presale collapse that could make 2032 very expensive

A sharp drop in condo presales has stalled construction across Vancouver and Victoria, and BCREA warns it could push home prices up 27% by 2032. The province now has over 7,000 completed but unsold homes, the highest since the late 1990s. The market looks soft right now. That’s exactly the problem.

BC is rolling back its own short-term rental rules — for some cities

BC just announced that eligible municipalities with healthy rental vacancy rates can opt out of the provincial rules that restrict short-term rentals to principal residences, helping meet summer tourism demand. A special one-time regulation will also allow Kelowna to opt out effective June 1, recognizing major events planned this summer. The province introduced those STR restrictions in 2024 to push units back into the long-term rental market. Now it’s quietly carving out exceptions. If you own a short-term rental in an exempt city, your math just changed.

BC rents are down 12% from their peak

Purpose-built apartment and condo asking rents in BC are down 12.2% from their August 2023 peak. Vancouver has seen the largest three-year decrease among major markets at 14.1%, with Richmond down 16.5%, and Coquitlam down 11%. This is the direct result of the provincial government’s housing supply push. Good news for renters. Complicated news for investors who underwrote purchases on 2022-era rent assumptions.