January 2026 – Residential Rental Market Executive Summary
Surrey, BC | Condominium Rental Market
Market Overview by Performance Property Management

Surrey’s condominium rental market entered 2026 in a transitional phase, characterized by
rising vacancy following new supply deliveries. Elevated supply from new completions,
slower population inflows, and affordability constraints reduced tenant urgency relative to
prior years. However, demand remains structurally strong, with absorption keeping pace
with new listings and market conditions stabilizing rather than deteriorating.

Supply
Active Listings: ~948 condominium units
Recent supply growth is primarily driven by new condominium completions and investor-
owned units entering the rental pool, particularly in City Centre and transit-adjacent nodes.

Demand & Market Velocity
Median Days on Market: ~40 days
Vacancy Rate: 4.3%, up from 1.6% (Dec 2024) [CMHC, 2025]
Absorbed Units: ~907 units
Implied Absorption Rate: ~96% of listed inventory
Despite higher vacancy, absorption remains strong, indicating that additional supply is
being met with demand rather than accumulating as long-term vacant stock.
Interpretation: The market has shifted from landlord-favoured to balanced, not
oversupplied.

Median Rental Rates (Asking)

• 1-Bedroom Condominiums
  • Median Rent: $1,800
  • Median $/Sq Ft: $3.31
  • Avg Size: 543 sq ft
• 2-Bedroom Condominiums
  • Median Rent: $2,350
  • Median $/Sq Ft: $3.02
  • Avg Size: 779 sq ft
• 3+ Bedroom Condominiums
  • Median Rent: $3,100
  • Median $/Sq Ft: $2.14
  • Avg Size: 1,448 sq ft

Pricing compression is evident: Larger units command lower $/sq ft but remain attractive
for families priced out of ownership.

Fuel (Macro Drivers)
Bank of Canada Policy Rate: ~2.25% (projected)
Economists broadly expect the Bank of Canada to hold rates steady in early 2026, reflecting
moderating inflation, cautious optimism, and uneven economic growth.
Stable rates reduce mortgage payment shock while keeping ownership affordability
constrained, indirectly supporting rental demand.

Business-Relevant Wildcards (Q4 2025–2026)

• Investor-Owned Condo Supply Reaching Saturation
  Higher interest rates and negative cash flow conditions pushed many investors to list units
  for rent rather than sell, temporarily inflating rental supply, particularly in one- and two-
  bedroom segments. Risk is short-term rent softness, not structural oversupply.
• Ownership Affordability Still a Barrier
  Ownership affordability remains constrained by income qualification and financing costs,
  delaying renter transitions into ownership. Supports medium-term rental demand and
  longer tenant tenure.
• Transit-Oriented Rental Demand Concentration
  SkyTrain expansion and Surrey City Centre densification are redistributing rental demand,
  favoring newer, transit-adjacent buildings, while older or car-dependent stock sees longer
  lease-up periods.
  Investment Implications & Opportunities
  Most Attractive:
  • 2- & 3-Bedroom Units
  • Lower $/Sq Ft Volatility
  • Family-oriented demand
  • Longer Average Tenancies
  • Well-Located Transit-Adjacent Units
  • Faster Lease Up
  • Stronger rent retention

Opportunistic:
1-Bedroom Investor Units
Competitive supply environment
Best suited for investors with low leverage or long-term horizons

Higher Risk:
Small, High-Leverage Investor Units
Cash-flow sensitive
Most exposed to vacancy and rent concessions

Conclusion:
Surrey’s condominium rental market in early 2026 reflects a healthy normalization rather
than a downturn. Elevated vacancy masks strong absorption, indicating that supply is being
actively digested by the market. Strongest opportunities lie in larger-format units and
transit-oriented locations, while smaller investor-grade units require pricing discipline and
longer holding strategies.