A ground-oriented Victoria houseplex with family-sized units, the scarce rental product the city's missing-middle rules push builders toward
Market Analysis

What Victoria's Missing Middle Means for Renters and Landlords

7 min read

Victoria's purpose-built vacancy just hit its highest level since 1999, while rented condos sit near zero and family-sized rentals stay scarce. For a houseplex held as rental, those two facts are the whole opportunity — here's what the latest CMHC data says.

Key takeaway

Victoria CMA purpose-built apartment vacancy reached 3.3% in October 2025 (highest since 1999), while rented condo vacancy stayed near 0.3% and family-sized rentals remained scarce.

Victoria's Missing Middle houseplex rules require a three-bedroom share, steering builders toward the highest-rent, scarcest product. The post argues the rental-hold case rests on family-sized, ground-oriented units, underwritten to current CMHC data.

What this covers

  • Victoria vacancy 3.3%
  • CMHC Victoria rents 2025
  • rented condo vacancy 0.3%
  • three-bedroom rent premium
  • houseplex rental hold
  • Victoria housing target 4902
victoria missing-middle houseplex rental-market cmhc vacancy

Victoria’s purpose-built rental vacancy just hit its highest level since 1999. At the same time, rented condos sit at near-zero vacancy and family-sized rentals are scarce. For anyone thinking about a houseplex as a rental hold, those two facts are not a contradiction — they are the whole opportunity.

TL;DR

  • The Victoria CMA purpose-built apartment vacancy rate reached 3.3% in October 2025, up from 2.6% a year earlier — the highest since 1999, per CMHC.
  • Rented condo vacancy stayed near 0.3% — far tighter — and rented condos cost more than purpose-built units.
  • Three-bedroom-plus units command the highest rents, and Victoria’s houseplex rules require a three-bedroom share.
  • The City is under a provincial order to permit 4,902 net new homes by 2028.
  • For a houseplex held as rental, the case rests on family-sized, ground-oriented product — the scarcest stock — not on assuming the tightest possible market.

What the CMHC data actually says

CMHC’s latest figures put Victoria CMA purpose-built apartment vacancy at 3.3% in October 2025, up from 2.6% the year before. The Province itself noted it as the highest level since 1999. New supply is loosening a market that had been extremely tight.

But the purpose-built number is only half the picture. Rented condo apartments — a big part of how Victoria houses people — sat at roughly 0.3% vacancy, and rented condos cost more than purpose-built units across bedroom types. Family-sized, ground-oriented rental remains genuinely scarce.

Average rents, October 2025

For the Victoria CMA, CMHC reported average purpose-built rents of about $1,349 for a studio, $1,625 for a one-bedroom, $2,120 for a two-bedroom, and $2,886 for three-bedroom-plus, with an all-units average of $1,805. Inside the City of Victoria, three-bedroom-plus units were higher still, around $3,035.

The pattern matters: the larger the unit, the higher the rent — and the scarcer the supply.

Why a houseplex fits the gap

This is where Victoria’s Missing Middle rules and the rental data line up. A houseplex is required to include a share of three-bedroom units — the greater of two units or 30% of the units. That pushes builders toward exactly the family-sized, ground-oriented homes that the market is shortest on and that command the highest rents.

In other words, the product the bylaw mandates is the product the market is missing. For a rental hold, that alignment is the core of the case.

Underwrite to current data, not to 2022

The one mistake to avoid: building a pro forma on the sub-1% vacancy and surging rents of a few years ago. A 3.3% purpose-built vacancy is moderate, not tight. The case for a Victoria houseplex as rental does not rest on assuming the hottest possible market — it rests on product type and location. Family-sized units near transit, in neighbourhoods like Fernwood or Hillside-Quadra, compete in the scarcest part of the market.

There is also a demand backdrop: Victoria is under a provincial Housing Target Order to permit 4,902 net new homes over five years. The policy direction is firmly toward more supply, and the houseplex is one of the forms meant to deliver it.

What this means for landlords and renters

For a landlord building a houseplex: lean into the three-bedroom requirement rather than treating it as a constraint. The data says that is where the rent and the scarcity are.

For renters: the Missing Middle program is aimed squarely at the kind of ground-oriented family housing that has been hardest to find in Victoria. More houseplexes mean more of exactly that stock. And if a project displaces an existing tenant, Victoria’s tenant protection rules require compensation, moving help, and a right of first refusal.

The bottom line

Victoria’s rental market loosened on the purpose-built side and stayed tight for family-sized, ground-oriented homes. A houseplex held as rental sits in that gap — provided you underwrite to the current CMHC numbers, not the market of three years ago.

See the full rental market page, or start at the Victoria Multiplex hub.

Frequently asked questions

What is Victoria's current rental vacancy rate?

CMHC's latest figures put the Victoria CMA purpose-built apartment vacancy rate at 3.3% in October 2025, up from 2.6% a year earlier. The Province itself noted this as the highest level since 1999, showing that new supply has loosened a rental market that had been extremely tight for years.

Is every part of Victoria's rental market loosening at the same rate?

No. While purpose-built apartment vacancy reached 3.3% in October 2025, rented condo apartments sat at roughly 0.3% vacancy, a far tighter market, and rented condos cost more than purpose-built units across bedroom types. Family-sized, ground-oriented rental supply remains scarce even as the purpose-built segment loosens.

What were average rents in Victoria in October 2025?

For the Victoria CMA, CMHC reported average purpose-built rents of about $1,349 for a studio, $1,625 for a one-bedroom, $2,120 for a two-bedroom, and $2,886 for three-bedroom-plus units, with an all-units average of $1,805. Inside the City of Victoria itself, three-bedroom-plus units ran higher, around $3,035.

Why does a houseplex fit Victoria's current rental gap?

A houseplex under Victoria's Missing Middle rules must include a share of three-bedroom units, the greater of two units or 30% of the units. That requirement steers builders toward exactly the family-sized, ground-oriented homes that the rental data shows are scarcest and that command the highest rents, so the product the bylaw mandates lines up with the product the market is short on.

Should a houseplex rental pro forma assume 2022-era vacancy rates?

No. Building a pro forma on the sub-1% vacancy and surging rents from a few years ago would misrepresent the current market. A 3.3% purpose-built vacancy rate is moderate, not tight, so the case for a Victoria houseplex as a rental hold should rest on product type and location, particularly family-sized units in neighbourhoods like Fernwood or Hillside-Quadra, rather than on assuming the hottest possible market conditions.

Is there demand pressure behind Victoria's push for more housing?

Yes. Victoria is under a provincial Housing Target Order to permit 4,902 net new homes over five years. That order signals a firm policy direction toward more housing supply, and the houseplex is one of the forms the City intends to use to deliver it.

What does Victoria's rental data mean for a landlord building a houseplex?

A landlord building a houseplex should treat the three-bedroom requirement as an advantage rather than a constraint, since the CMHC data shows three-bedroom-plus units carry both the highest rents and the scarcest supply in the Victoria CMA. Underwriting to the current 3.3% vacancy figure, rather than to a tighter historical market, keeps the pro forma grounded in what the market actually looks like today.

What happens to an existing tenant if a houseplex project replaces their home?

If a houseplex project displaces an existing tenant, Victoria's tenant protection rules require compensation, moving help, and a right of first refusal on the new units. This obligation applies regardless of how tight or loose the broader rental market is at the time of construction.

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David Babakaiff

David Babakaiff

Co-Founder, VanPlex | 25+ Years BC Construction

David Babakaiff is Co-Founder of VanPlex with 25+ years scaling BC construction. He led Alair Homes Vancouver to the 2024 HAVAN Award for Best Multiplex Unit in the GVRD. VanPlex’s PlexRank™ algorithm scores residential parcels across BC for multiplex conversion potential under Bill 44.

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