CMHC Rental Market Report – BC Highlights

The CMHC has just released their Rental Market Report for BC. The report stated that Victoria and Vancouver have Canada’s second and third lowest vacancy rates at 1.2% and 1.4% respectively. 

Some of the report’s highlights include:

• BC’s apartment vacancy rate decline to 1.8 percent in April 2015 from 2.4 percent in April 2014
• Vacancy rates were lower compared to last spring for all unit types except bachelor suites, reflecting an increased demand for all rental accomodation.
• The province’s two largest Census Metropolitan Areas (CMAs) – Vancouver and Victoria – reported lower apartment vacancy rates this spring compared to a year ago (they edged higher in Kelowna but remained stable in Abbotsford-Mission).
• The two-bedroom apartment average rent in BC was $1,136 and the one-bedroom apartment average was $973.
• For two-bedroom apartments, the estimated annual increase in the the sample sample rent was 3 percent (for one bedrooms the annual increase was also 3 percent).
• The availabity rate decreased to 2.5 percent from 3.6 percent in April 2014. 

When asked to weigh in on the findings of the report, had this to add:

The official “purpose-built” vacancy rate continues to stay very low in the Lower Mainland for a number of reasons:

1. The price and availability of a plot of land on which to build a rental specific building is a restrictive factor. For instance, the opening of the new rental only tower near Rogers Arena occured after the survey was taken for this latest report.

2. ? The rents in the condo market, although taking some of the demand pressure off of the purpose-built market, are higher than the purpose builds in the majority of cases, thus keeping demand strong in these older buildings.

3. Affordability for purchase in Vancouver and Victoria has slipped further, despite the lower mortgage interest rates? and this is keeping people in rental market longer than traditionally.

4. Population growth continues to remain relatively strong and under a traditional economy model, new migrants to an area rent for the first 2.5 years before deciding whether to stay and then whether to buy.

5. With GenX and Millenials there is not as high of a priority placed on ownership so renting is not as stigmatised as it previously was.

What do you think about the report findings?

To view the whole report click here. 

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