VANCOUVER (NEWS 1130) – If you’re a renter in Vancouver, new analysis is suggesting you may want to take advantage of the market downturn while you can.
According to research from Rentals.ca, it’s predicting rates will start going back up by the spring or early summer of 2021.
Rents in most major cities, including Vancouver, are down more than nine per cent this year, that’s due to a few factors like the COVID-19 pandemic, a lack of foreign students, and more people moving to the suburbs since working from home has become the new norm.
Paul Danison with the website says their research shows the trend of lower prices will slowly begin to reverse itself. “Around spring or so, we’ll probably hit the bottom, and we’ll probably see some renters jumping into the market then.”
He thinks as vaccines become more widely available, the market will stabilize. “As the vaccine gets out there, and people get back to their daily lives, people will return to the cities, and, I think, the rents will turn around.”
The research suggests rents next year are going to go up about three per cent in Vancouver proper, which continues to have some of the most expensive and unaffordable rates in Canada, with the average one-bedroom going for almost $1,900 in the area.
“Downtown markets, you can get pretty good deals in Vancouver. You have more supplies, there’s more availability and you’re going to get a better deal if you want to go rent a place right now.”
He explains to make up for the lack of people securing a place to stay, landlords have become creative by offering incentives like not paying rent for a month or free parking to entice people to move in.
The report finds rental rates will go up about four per cent in Toronto, six per cent in Montreal, but will remain flat in Calgary.
Danison adds Vancouver had the highest average monthly rent last month on a list of 35 cities. A two-bedroom home was going for $2,636, and the city finished second for an average monthly rent for a one-bedroom at $1,865.
Earlier this year, the provincial government announced it was extending the freeze on rent increases until July 10 as many have struggled during the pandemic.