METRO VANCOUVER (NEWS 1130) — Metro Vancouver is once again in the top five of the most expensive rental regions in Canada.
In the most recent report by rental site PadMapper, Vancouver and Burnaby are respectively second and third when it comes to rental prices.
In Vancouver, renters are shelling out an average of $2,050 a month for a one-bedroom apartment, while in Burnaby, renters are paying an average of $1,650 a month for similar units.
According to Bryan Yu, deputy chief economist with Central 1 Credit Union, it’s not much of a surprise that Metro Vancouver is clocking in such high rents, which he says goes hand-in-hand with the high real estate prices.
“What also plays a role is the types of units that being rented out,” Yu tells. “It could be condos for example. We’ve seen a large swath of condos being built out in Burnaby area and as a result, it could be driving up the pricing of the rents of newer types of property.”
However, Yu says PadMapper’s data should be taken with a grain of salt.
“Rents over the long-term tend to move with income gains and what’s affordable for the region, but what we are seeing a period in which we do have high prices as well as a lot of demand for rental. That’s really pushing up those values right now.”
He expects the new short-term rental rules to increase supply for those seeking a long-term home, but he says the vacancy rate will still remain very low at around one per cent, which he says are driven by a number of factors.
“It is creeping high due to an increase in the overall supply of condos, as well as some of that shift in the Airbnb [rules],” Yu explains. “But we have to remember that there is also a lot of demand in the [rental] market as well, especially given some of the more stringent credit conditions for purchasing.”
PadMapper’s data shows that Burnaby rents grew 8.6 per cent over the past year, while Vancouver rents increased 1.5 per cent over the period. Toronto remains in the top spot for rent expenses in Canada.
— with files from Martin MacMahon