April 1, 2017
For the last 10 years, we at the Goodman Report have railed against the rental housing policies of Metro Vancouver – and in particular the City of Vancouver – relating to the glaringly insufficient new rental stock under construction. The track record of local politicians in creating an environment conducive to purpose-built rental construction had been dismal at best, a travesty at worst.
According to CMHC’s Rental Market Report (Fall 2016), Vancouver CMA vacancies have reached an intolerable low of 0.7%, causing tenants to allocate disproportionately high levels of their incomes to housing or, even more depressingly, move out of Vancouver altogether.
Yet something has been stirring out there of late. All those construction cranes littering the horizon are not just for condo projects. They’re also for new purpose-built rental buildings: great news for renters and employers.
The fact that some of the Goodman Report’s most avid followers – planners, politicians, lenders, developers and the media alike – have been supportive of our insights underscores the opportunities and potential rewards involved in building rentals.
How else can one explain the fact that 11,784 market rental units, making up 105 buildings (no, not a misprint) are under construction, approved or proposed throughout Metro Vancouver?
In Vancouver itself, it’s anticipated that 6663 rental units will be added over the next 3 years to the current inventory of 57,018 suites, an 11.7% increase. In the suburbs of Metro Vancouver, 5121 rental suites will be added to the current rental pool of 50,849 suites, a 10.1% increase.
While the additional suites will take years to have a measurable impact on vacancy rates, they’ll certainly contribute to the social and economic fabric of our communities.
For a summary of all new rental market suites now in play, click here >>.