Metro Vancouver renters still plan to purchase real estate despite cost of living pressures: report

Renters may be struggling with the cost of living in Metro Vancouver, but many are still hopeful of buying a home eventually.

Interest rates may have dropped, and there are more homes on the market these days, but the latest rental market report from Royal LePage shows people are waiting on the sidelines.

Royal LePage says a little more than 50 per cent of the renters they surveyed plan to purchase a property one day, but just a fraction think that will happen within the next two years.

Many say they will continue to rent, hoping for prices to fall as they try to save for a down payment.

However, that is a struggle for almost half of the tenants, who face affordability challenges and must make difficult choices — such as reducing spending on groceries and food just to afford their rent.

“The rental market looks very different today than it did a year ago. There is a surplus of inventory available, much like in the mainstream market. In fact, the slowdown in resale activity is having a knock-on effect in the rental market. Some property owners who weren’t able to sell their units, specifically condos, are choosing to list them as rentals instead,” said Nina Knudsen, property manager at Royal LePage Sussex in North Vancouver.

“At the same time, as resale prices come down, it’s becoming increasingly common for tenants to purchase the very units they’ve been renting. It’s a unique dynamic we’re watching unfold in real time. Despite ongoing affordability challenges, the goal of achieving home ownership remains a priority for many young people in the region,” she added.

Almost a quarter of B.C. renters say they spend more than 50 per cent of their net income keeping a roof over their head, with more than 30 per cent saying they are skimping on what they put into savings or retirement.