Metro Vancouver’s rental market won’t be cooling down any time soon.
In fact, it’s on track to climb a whopping 20 per cent this year.
That’s according to UBC Economist Tom Davidoff who has been tracking rental data online since March.
“The worst the property that is the small and less conveniently located, the greater the rental increase. So, the rent increase has been concentrated at what I call the bottom of the market not the top.”
Smaller suites getting bigger price hikes
He says smaller one and two bedroom suits have seen a 15 per cent hike between April and August.
“The bump in rents that you have to pay to get a bump in quality is much lower than you would pay in percentage terms in price.”
Over the summer, Vancouver residents have seen a variety of other discouraging statistics and predictions related to the hot housing market.
Renting not a reasonable alternative to home ownership in Metro Vancouver
In July, a new report highlighted the growing reality for millennials: that buying a home wouldn’t be in the cards.
But not only that, Vancity’s William Azaroff said their latest report showed renting is no longer a viable alternative for many working households.
“Usually rental is considered an alternative to home ownership, but in a lot of cases rental is no more affordable or available than home ownership.”
The province also released date indicating exactly how much of the market is taken up by foreign ownership, a topic that remains highly debated.
A UBC student studying the affect of Airbnb on Vancouver’s housing market concluded that the site’s report data was misleading, and that its impact is bigger than perceived.
The site continues to soak up housing that could be going to those in need of a permanent residence, and the province is working towards regulating the issue.