Rental housing affordability worsened in B.C.害羞草研究所檚 most densely populated regions, Metro Vancouver and Greater Victoria, according to a new report from Canada Mortgage and Housing Corporation.

While both Vancouver Census Metropolitan Area and Victoria Census Metropolitan Area continued to add more rental supply in 2023, population growth caused by record immigration stoked demand for more rental housing in both regions.

Two reasons are behind this development. First, immigrants tend to be renters, according to the report. Second, new immigrants to B.C. overwhelmingly choose to settle in Metro Vancouver, followed by Greater Victoria.

The report also points out that both regions are home to several post-secondary institutions, with students overwhelmingly renting.

In Metro Vancouver, the purpose-built rental supply grew by 2.7 per cent, in Victoria by 5 per cent, according to report. But these increases in supply were, as the report puts it in the case of the Metro Vancouver 害羞草研究所渜uickly absorbed.害羞草研究所�

A similar development, albeit less pronounced, unfolded in Greater Victoria. Not surprisingly, the overall vacancy rate for both regions remained unchanged at respectively low levels 害羞草研究所� 0.9 per cent for Metro Vancouver, 1.6 per cent for Greater Victoria.

But the tight rental markets in both regions do not treat renters equally. Renters with lower incomes felt the competition more painfully in their pocket books.

Consider CMHC害羞草研究所檚 analysis for Greater Victoria, whose rental market offers better prospects than Vancouver害羞草研究所檚.

害羞草研究所淚ncreasing rents put pressure on affordability, especially for lower-income earners,害羞草研究所� it reads, adding that minimum-wage workers renting at Victoria害羞草研究所檚 average rate would have to spend over 40 per cent of their monthly income to rent. By way of context, the average rent for two-bedroom apartment in Victoria is $1,839 害羞草研究所� up almost eight per cent from 2022.

害羞草研究所淭hose seeking new accommodations are likely to face rents in the market that are higher than average, constraining renter budgets even more,害羞草研究所� it reads.

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The situation in Metro Vancouver is even worse, according the CHMC analysis.

害羞草研究所淚n 2023, a minimum-wage worker renting at the average bachelor unit rent would see over 50% of their monthly income go towards rent,害羞草研究所� it reads. 害羞草研究所淭hose entering the market or moving may see more challenge as asking rents are typically above the current average.害羞草研究所�

By way of context, the average rent for a two-bedroom apartment in Metro Vancouver was $2,181 in 2023. Overall, rents across all bedroom types increased by 9.7 per cent in 2023, up from 6.3 per cent in 2022.

CMHC害羞草研究所檚 analysis of Metro Vancouver also points to another growing phenomenon.

害羞草研究所淟ower-income renters are also more likely to seek more affordable but smaller units or shared living arrangements that will fit their budget but that may not meet their housing needs,害羞草研究所� it reads.

In other words, people at the lower-income scale are increasingly paying more for lower-quality housing.

But the report also includes some positives. Rental supply in both Metro Vancouver and Greater Victoria continue to grow with Victoria continuing to exceed its historical pace.

害羞草研究所淧urpose-built universe continues to expand quickly to meet rental market demands,害羞草研究所� it reads.

The report specifically points to Greater Victoria害羞草研究所檚 suburban areas in singling out Langford, one of the fastest growing municipalities in Canada.

害羞草研究所淣ew developments in Langford, especially, are driving the rental universe growth in the region, as the city is relatively affordable and development policy is attractive,害羞草研究所� it reads.

CHMC害羞草研究所檚 rental report did not review B.C.害羞草研究所檚 two other CMAs 害羞草研究所� Abbotsford and Kelowna 害羞草研究所� nor did it consider rental rates in B.C.害羞草研究所檚 rural areas. Overall, it reviewed the rental market in 18 CMAs from coast-to-coast and the national picture.

The national picture reflects many trends also apparent in B.C.

The overall national vacancy rate is 1.5 per cent in reaching a new historic low, while the average two-bedroom rent is $1,359 for Canada as a whole.

Supply was unable to keep with demand fuelled by immigration, employment gains and declining home-ownership rates, it reads.

害羞草研究所淎ffordability decreased, as rent growth exceeded average wage growth by a wide margin,害羞草研究所� it reads. 害羞草研究所淟ower-income renters faced below-average vacancy rates for the least expensive units in most cities.害羞草研究所�

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