A report released Tuesday by the federal government’s housing arm provided some positive news for renters looking for a one-bedroom apartment in downtown, English Bay and the West End: vacancy rates have inched above the one per cent mark over last year.
The Canada Mortgage and Housing Corporation’s rental survey showed average vacancy rates for a one-bedroom in the English Bay area climbed from 0.8 per cent in October 2016 to 1.2 per cent this October. The increases were more significant in the West End (0.5 per cent in 2016 to 1.2 per cent this year) and downtown (0.4 per cent to 1.3 per cent).
Gil Kelley, the city’s director of planning, said the data suggests the addition of more rental housing across the city and policies such as the empty homes tax, which was implemented to encourage landlords to rent unused space, might have something to do with the increases.
“It is a hopeful sign that we’re seeing a bit more room to breathe in the rental housing market,” said Kelley, noting the city will have to monitor the vacancy rate over time as it relates to city housing policies to accurately determine whether they are having a direct effect on supply.
Vacancy rates for two-bedroom apartments in English Bay and downtown held fairly steady over last year — at just over one per cent — but plummeted in the West End/Stanley Park area from 1.5 to 0.2 per cent.
The biggest gain in available apartments for rent was for three bedrooms. Last year, the data showed a zero per cent vacancy rate for the family-sized places in the West End/Stanley Park area. That jumped to 7.7 per cent this year. English Bay also went from zero to 6.9 per cent; there was no data available for downtown three bedrooms.
While vacancy rates have increased, the average rent for a one-bedroom in West End/Stanley Park shot up from $1,366 last year to $1,386 this year, and $1,434 to $1,520 downtown. English Bay saw a decrease from $1,441 to $1,436 per month for a one-bedroom place.
The average rent for a three-bedroom place in the West End/Stanley Park was $3,150, and $2,723 in English Bay. Two-bedroom places in all three areas cost an average of $2,186 per month, an increase of nine dollars over last October.
When examining all of Vancouver, average monthly rents for a one-bedroom apartment were highest in the University Endowment Lands ($1,700) and lowest in Marpole, at $978 per month. Average rent for a one-bedroom across the city was $1,326 per month. For a two-bedroom, it was $1,860 and three-bedroom, $2,313.
Vision Vancouver Coun. Tim Stevenson, who lives in the West End, believes the empty homes tax and the recently approved short-term rental rules — which the city warned more than a year ago would soon be in place — sent a strong message to landlords about the need to free up long term rental accommodations.
Stevenson said the city’s aggressive agenda to approve more rental housing across Vancouver has also helped in slowly creating more supply of rental homes. A report on the city’s new housing strategy that went before city council Tuesday said 7,030 rental units have been built in the city since 2010.
“I think we’re going in the right direction and this is the first indication,” said Stevenson of the city’s housing policies.
The housing corporation’s report said rising rents, low financing costs, growing interest from institutional investors and municipal incentive programs for developers stimulated supply of new units in the rental market.
Though new rental homes are more expensive to rent, the report said “new units allow renters who desire newer-condition suites to move, freeing up additional supply at other price points.”
As a region, Metro Vancouver’s vacancy rate is still below one per cent at 0.9, and the average rent for a one-bedroom is $1,223 per month. Those figures are based on calculations from data collected in October from the “Census Metropolitan Area,” which stretches from Vancouver to Langley and includes White Rock, Maple Ridge and the North Shore.
The housing corporation conducts the rental market survey the first two weeks of every October. The survey is conducted by a combination of telephone interviews and site visits, and information is obtained from the owner, manager, or building superintendent.
The city’s proposed housing strategy, which will likely get council approval Wednesday, calls for the construction of almost 50,000 rental homes over the next 10 years. Rental zones and projects that would tie a person’s income to cost of rent are other initiatives in the strategy.
