As the housing crisis pushes on in BC and across Canada, a study was done to gauge where people are at in terms of renting, owning homes or trying to transition out of renting.
Royal LePage, one of Canada’s leading real estate brokerages conducted this comprehensive study of all regions in the country.
The study’s findings were that the majority of people feel as if buying a home is out of reach for them given the current housing market.
In BC, around a quarter of renters want to buy a home and consider this before renewing or signing their leases.
Another quarter say they would like to buy in two-years’ time.
Meanwhile, the study says that 52%, the majority of British Columbians won’t be looking to buy because of their financial situations.
Royal LePage says that the average rent in Victoria for a two-bedroom unit in October 2023 was 7.9% higher than a year prior.
According to Canada Mortgage and Housing Corporation (CMHC), the vacancy rate in purpose-built rental buildings sat at 1.6% in October of last year.
According to the most recent data from Zumper, a rental data analyst company and platform for would-be tenants to find a place to live, since last month one-bedroom units have risen by 3.8% to $2,180 per month, while two-bedroom units have risen by 4.1% to $2,780 per month in Victoria.
Year-over-year, one and two-bedroom units are 9.5% and 9.9% more expensive, respectively.
Royal LePage says that in BC as a whole:
- 23% of renters spend up to 30% of their income on rent
- 42% of renters spend between 31% to 50% of their income on rent
- 25% of renters spend over 50% of their income on rent
The group spending over 50% of their income on rent are well above the national average who are doing the same, which is 16%.
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One North Vancouver property manager says that because of the recent rising of the overnight interest rate in the last two years, some landlords have opted to offload their extra units, but with the rate just being lowered slightly, this may change.
“With rates now beginning to trend downward, some investors may be seeing a light at the end of the tunnel,” said Nina Knudsen, property manager, Royal LePage Sussex.
“However, the most recent rate cut by the Bank of Canada will not be enough to encourage those landlords from selling their properties if further cuts are not made in the near future.”
What do you think the future holds for rental prices in Victoria? Do you think the number of purpose-built rental units expected to come on the market in the next few years will drive prices to plateau or decrease, or will they continue to climb?
Let us know in the comments!
