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
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.