It isn't just buyers being shut out of Vancouver’s red-hot housing market; so too are renters, according to a recent study by VanCity.
“The attention on housing needs to broaden to include more permanent and affordable rental housing options,” William Azaroff, VP of community investment for VanCity, said. “People from all incomes need housing stability and local businesses need a well-housed labour pool to deliver the services that all British Columbians rely on.”
The report, entitled Rent Race: The growing unaffordability of rent in Metro Vancouver
, found that the average millennial renter -- who makes $40,300 – can only afford to rent in two Vancouver neighbourhoods.
That’s bad news for investors who have purchased Vancouver properties hoping to attract young professional tenants.
Renters comprise one-third of households in metro Vancouver and 51% of those in downtown Vancouver.
“The report found that renter workers making median incomes in several industries face the real possibility of being priced out of the communities they call home,” VanCity said. “This trend could leave Metro Vancouver with a limited pool of talent to draw from.”
The average rent in Vancouver is $1,144 per month and the vacancy rate sits at 0.8%
And while the average weekly income rate increased by 6.6% in B.C. between 2011 and 2015, the average rent increased a whopping 11.4% in metro Vancouver.
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A new report points to the continued struggles of not only buyers, but renters as well, in one of Canada’s hottest housing markets.