Dramatic year-over-year increase to rent in Metro Vancouver

Buying a home in Metro Vancouver has been a long-standing challenge for many, but affordability challenges are also extending into the rental market.

Rentals.ca says after a couple of months of stagnation, the Canadian rental market has seen the largest monthly increase in average rents since 2019.

“Demand for larger units was a noticeable trend during the pandemic with more people needing to work from home, and parents needing more space for children at home full time. This trend has not dissipated in the post-vaccine and return-to-work era. Many employers are having their employees only come to the office for one or two days a week. Couple this with sharp increases in interest rates, which has dissuaded some tenants from purchasing property, and the demand for generously sized suites has been strong,” says the report.

A one-bedroom suite in Vancouver proper has gone up almost 20 per cent year-over-year to $2,377, while a two-bedroom has jumped more than 24 per cent to a shocking $3,495, which is top in the country.

Three B.C. cities cracked the top 10 when it comes to the most expensive places to rent, according to the website. Following Vancouver, Burnaby comes in third, while Victoria is ninth.

The Rentals.ca National Rent Ranking puts Vancouver in top spot, with an average 1-bedroom apartment averaging at $2,377 per month. (Courtesy Rentals.ca)

“Across all property types, Vancouver had the highest average monthly rental rate through the first five months of this year. Winnipeg averaged $1,780 per month for single-family homes, while Vancouver averaged $4,494 per month,” finds the report.

“Edmonton had the lowest average monthly rental rate for condo apartments at $1,357 per month, while Vancouver averaged $3,188 per month. Regina had the lowest average monthly rental rate for rental apartments at $993 per month, while Vancouver averaged $2,661 per month. Saskatoon had the lowest average monthly rental rate for basement apartments at $1,096 per month, while Vancouver averaged $2,115 per month.”

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• Metro Vancouver renters feeling highest financial crunch in the country

• ‘I literally can’t afford it’: Metro Vancouver renters pushed to their limits

And it’s not just monthly rates that Vancouver leads the country in.

The city is also top when it comes to the highest cost per square foot.

“Vancouver and North Vancouver had remained as the most expensive municipalities at $3.87 and $3.62 respectively. New Westminster, however, has experienced significant price growth between May 2021 and May 2022 to land at $3.55 per square foot (an annual increase of 36 per cent — however, this likely has to do with a change in the composition of listings year over year). Richmond has also experienced a significant annual increase of 26 per cent to land at $3.17 per square foot.”

(Courtesy Rentals.ca)

Overall, Rentals.ca found all types of housing in Vancouver are expensive, including single-family homes, townhouses, condos, apartments, or basement suites.

“Many of Canada’s major markets experienced substantial rent growth with condo and rental apartments in Vancouver up 23 per cent annually, and Toronto up 19 per cent. Other smaller municipalities have seen even higher rent inflation with Kitchener at 26 per cent, London at 25 per cent, and Calgary at 20 per cent. Uncertainty in the ownership housing market, and the delay in delivering new supply due to supply-chain delays and labour stoppages should continue to put upward pressure on rents into the fall of this year in the face of increased demand,” the report says.

This all comes as rental vacancies in cities, like Vancouver, haven’t really budged and remain low as demand increases.

If you’re tired of paying so much for housing, Rentals.ca says rent for a one-bedroom is a reasonable $975 in Saskatoon — the cheapest out of 35 cities across the country.