Vancouver renters face increasingly tough market, CMHC report finds
Vancouver renters continued to pay the highest prices in Canada as vacancy rates in the area dipped below one per cent last year, according to new federal data.
Canada Mortgage and Housing Corporation released its annual rental market report Thursday, noting that nation-wide vacancy rates plunged to their lowest since 2001 as demand surged due to higher mortgage rates, the return of international students, and an increase in net migration – particularly in major metropolitan centres.
"These results reinforce the urgent need to accelerate housing supply and address supply gaps to improve housing affordability for Canadians," the report said.
Despite seeing the largest number of new, purpose-built units since 1990, supply remained extremely tight in Vancouver where the vacancy rate was 0.9 per cent, down from 1.2 per cent in 2021.
The average price for a two-bedroom rental in Vancouver was up 6.3 per cent – to $2,002 for a purpose-built unit and $2,504 for a condo. The area also has the highest rate of condos for rent in Canada, at 42.5 per cent.
"Important imbalances exist in the Vancouver rental market. Our data show that lower-income households face significant challenges finding units that they can afford," the report said.
Only about one in three market units are affordable to households with an annual income of less than $55,000, only one in 200 are affordable to households with the lowest 20 per cent of incomes.
The report also noted a stark difference between the asking price for vacant and occupied units
"The average asking rent for vacant units was 43 per cent higher than the overall average rent for occupied units in the Vancouver (census metropolitan area)," the report said.
"This was significantly higher than the 10 per gap observed in 2021, as the average asking rent for vacant units soared in 2022. While some new units with high rents are currently vacant, an influx of such units wasn’t the main contributor to higher asking rents."
The report notes that the province limits the allowable rent increase for tenants who remain in their suites so that, for example, the average annual rent increase for a two-bedroom went up by 3.9 per cent for renters who stayed put. In contrast, a unit that turned over to new tenants saw a jump of 23.9 per cent.
"Fewer units coming to market creates a more challenging environment for new renters. The market can’t accommodate as many moves as before, leading to higher rents for those units that do come to market," the report said.
"New leases are formed under current market conditions. Due to rent control, existing leases reflect market conditions in the past. This results in a gap between the overall average rent paid and current market rents."
The full report is available online.
CTVNews.ca Top Stories
There's actually no such thing as vegetables. Here's why you should eat them anyway
The rumours are true: Vegetables aren't real — that is, in botany, anyway. While the term fruit is recognized botanically as anything that contains a seed or seeds, vegetable is actually a broad umbrella term.
'It looked so legit': Ontario man pays $7,700 for luxury villa found on Booking.com, but the listing was fake
An Ontario man says he paid more than $7,700 for a luxury villa he found on a popular travel website -- but the listing was fake.
The Met Gala was in full bloom with Zendaya, Jennifer Lopez, Mindy Kaling among the standout stars
The Met Gala and its fashionista A-listers on Monday included Jennifer Lopez, Zendaya and a parade of others in a swirl of flora and fauna looks on a green-tinged carpet lined by live foliage.
Israeli forces seize Rafah border crossing in Gaza, putting ceasefire talks on knife's edge
Israeli tanks seized control of Gaza's vital Rafah border crossing on Tuesday as Israel brushed off urgent warnings from close allies and moved into the southern city even as cease-fire negotiations with Hamas remained on a knife's edge.
Canadian cadets rock mullets and place second at U.S. military competition
Sporting mullets, Canadian Armed Forces officer cadets placed second in an annual military skills competition in the U.S.
Highlights from the 2024 Met Gala exhibit: Sleeping Beauty would wake up for these gowns
Sure, she was a royal princess and all. But there’s no way Sleeping Beauty — either before or after her nap — ever had quite the fabulous wardrobe that’s been assembled at the Metropolitan Museum of Art.
Noelia Voigt resigns as Miss USA, citing her mental health
Noelia Voigt, who was crowned Miss USA in November 2023, has announced she is resigning from her role, saying the decision is in the best interest of her mental health.
Putin begins his fifth term as president, more in control of Russia than ever
Vladimir Putin began his fifth term Tuesday as Russian leader at a glittering Kremlin inauguration, setting out on another six years in office after destroying his political opponents, launching a devastating war in Ukraine and concentrating all power in his hands.
Winnipeg man admits to killing four women, argues he's not criminally responsible
Defence lawyers of Jeremy Skibicki have admitted in court the accused killed four Indigenous women, but argues he is not criminally responsible for the deaths by way of mental disorder – this latest development has triggered a judge-alone trial rather than a jury trial.