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Spike in the sale of rental buildings in Metro Vancouver could lead to higher rents: realtor

(iStock photo)

VANCOUVER (NEWS 1130) – We spend a lot of time talking about the high price of owning a home in Metro Vancouver, but it turns out renters could get hit with some hefty increases this year.

A new report is revealing a massive spike in the sale of rental buildings.

Sales of apartment buildings went up nearly 50 per cent from 2014 to 2015 and the value of all sales went up by nearly 100, according to a report put together by local realtors, David and Mark Goodman.

David Goodman says the dollar amount of sales nearly doubled during that time.

“What has happened is a lot of investors have gravitated towards multi-family. They look at the shortage of rental opportunities. There’s tremendous demand for suites.”

He adds this doesn’t mean rents have to go up, but says competition will.

“We’re simply not building enough new rental buildings and the municipalities for the most part, wish to protect the existing rentals.”

Goodman says a lot of those older buildings could be replaced with new larger ones.