Metro Vancouver is seeing its weakest pace of new condo construction since 2011, according to the Canada Mortgage and Housing Corporation (CMHC).

New condo construction in Metro Vancouver fell 40% in the first half of 2026 compared with the same period a year earlier, making it the weakest first half for condo construction in 15 years, according to CMHC’s Fall 2026 Housing Supply Report released Thursday.

The continued decline in condo starts could lead to fewer completions in the future, adding pressure on available ownership housing and posing a risk to affordability in the future, said the organization.

“The condo market remains constrained by weak presales, high construction costs and growing inventories of completed and unsold units,” said the report.

Purpose-built rental apartments account for most new constructions in the region, at about 60%, up from about 20% a decade ago.

Rental units under construction rose about 36% from 2025, as more developers favour rental projects supported by “rental-focused policies and financing,” while residential projects “have struggled to sell in recent years,” according to CMHC.

These supports include municipal incentives, rental-specific zoning policies, development charge relief and favourable financing programs designed to help maintain rental project viability, noted the report.

“Developers continue to favour rental projects because they carry less risk than condominium developments under current market conditions,” said CMHC.

“The shift appears likely to continue ….. Vancouver is positioned to see several more years of strong rental completions, which could continue easing pressure in the rental market.”

But the condo market remains constrained, with large concentrations of unsold inventory have emerged in Surrey, Vancouver and Burnaby. Burnaby is seeing particularly strong inventory growth, according to the report.

With condo construction at current levels, CMHC warns that future buyers could face increased competition for a limited supply of ownership housing, which could put upward pressure on prices.

“Condominiums have traditionally been Vancouver’s primary source of new ownership housing,” said CMHC.

“Vancouver’s current pace of starts is still 5,000 to 7,000 units below what’s needed to restore pre-pandemic affordability levels by 2036.”

CMHC : Metro Vancouver Condo Construction Hits 15-Year Low by Daisy Xiong | BIV