Declining vacancy rates.

2011-12-14T14:57:00.000-08:00

Metro Vancouver, B.C. lead nation in average rents, CMHC survey says

By Brian Morton, Vancouver Sun December 14, 2011

Metro Vancouver and British Columbia led the nation in average monthly rents in October, according to a national survey by Canada Mortgage and Housing Corporation released Tuesday.

But equally concerning for renters, according to Tenants Resource and Advisory Centre executive director Nicky Dunlop, is the city's falling vacancy rate.

"The situation is awful," Dunlop said in an interview, pointing to a half-point drop in the vacancy rate to 1.4 per cent in October from 1.9 per cent in October 2010.

"It's getting worse and pushing people out of the city. Folks who live in the city won't be able to live in the city and there won't be anyone around to serve your coffee.

"We take 8,000 calls a year, including people who fear getting evicted and fear they won't get another place."

The average vacancy rate in Canada's 35 major centres was 2.2 per cent in October, down from 2.6 per cent in October 2010.

"With respect to the CMAs [census metropolitan areas], the highest average monthly rents for two-bedroom apartments in new and existing structures in Canada's major centres were in Vancouver ($1,237), Toronto ($1,149), Ottawa ($1,086), Calgary ($1,084) [and] Victoria ($1,045)," CMHC said in its Fall Rental Survey.

"Provincially, the highest average monthly rents were in British Columbia ($1,050), Alberta ($1,044), and Ontario ($1,002)."

Vancouver's status as the most expensive rental market is no surprise to Gastown resident Felisha Paquette, who has been searching for two months for a one-bedroom apartment in Vancouver, Burnaby or New Westminster with her fiance Jaylee Moreau, priced around $800.

"We're finding it difficult to find a place in our price range that's what we're looking for," Paquette said. "I work and go to [nursing] college. And we can afford up to $1,500 a month. We don't drink. We're very good tenants. We have great references and still can't find a place. It's frustrating. There's not a lot out there."

The CMHC report noted that the average rent in Metro Vancouver rose 2.4 per cent in the year and 2.2 per cent provincially, similar to the Canadian average.

Provincially, the vacancy rate dropped to 2.4 per cent in October from 2.7 per cent in October 2010.

"Apartment vacancy rates were lower across all bedroom types, with larger apartment units reporting higher vacancy rates than smaller units," the report said.

The Canadian average two-bedroom rent was $883 in October 2011, compared with $860 in October 2010.

Robyn Adamache, CMHC's senior market analyst for Metro Vancouver, said in an interview that the vacancy rate for the city is pretty stable, on par with a 10-year average of 1.3 per cent and far higher than 0.7 per cent in 2007 or 0.5 per cent in 2008.

Nevertheless, she said, the results show very strong demand for rental housing, "mostly due to migration to the region, a strong employment market, and the affordability [of rentals] versus ownership."

She said the high cost of renting was no surprise, as Toronto or Vancouver typically share the highest prices.

Adamache noted that there haven't been many purpose-built rental units constructed in recent years in Metro Vancouver, with more than half of all renters living in the secondary rental market including investor-owned condos, houses or suites in houses.

She said the vacancy rates for condos, which are generally more expensive, declined more sharply, from 2.1 per cent in October 2010 to 0.9 per cent this October.

Dunlop said there is no single solution to a shortage of rental units, and that all levels of government should look at such things as tax and zoning incentives for the construction of purpose-built rental apartments.

Last month, a housing coalition of industry, non-profit and government leaders said that the supply of new rental housing is failing to keep up with demand, with less than onetenth of the necessary units being built annually.

The coalition's goals include a National Economic Strategy involving an adequate supply of rental housing, reinstating federal tax incentives to stimulate private market rental housing, increasing the supply of federal, provincial and municipal land for affordable rental housing, and encouraging municipalities to adopt policies that support rental housing construction.

bmorton@vancouversun.com
© Copyright (c) The Vancouver Sun

Guess which is the Greeniest city in North America?

2011-07-11T14:02:00.001-07:00

http://www.vancouverobserver.com/blogs/earthmatters/2011/07/10/why-san-francisco-trashed-vancouver-and-took-first-place-siemen%E2%80%99s

Canada post

2011-06-27T11:23:00.000-07:00

Canada Post is back to work on Tuesday.

Wonderful weather

2011-04-19T09:38:00.001-07:00

Are you enjoying this glorious weather?

View from the roof taken yesterday.

2011-04-08T15:02:00.000-07:00

Collecting view shots from the building

2011-03-18T13:29:00.000-07:00

Do you have a favourite shot you have taken from the building? Please share it with the rest of us.
Here are some of my personal favourites.

Updates to our website

2011-02-02T12:49:00.000-08:00

What do you think of the updates to our website?

Please give Jana or Nick your feedback.