A sobering report from Royal LePage reveals the staggering amount of income Vancouver and BC residents are spending on rent.
The report also reveals some trends and insights into the percentage of renters who want to purchase property rather than sign or renew their lease.
Among renters in BC, 23% spend up to 30% of their net income on their monthly rent, and 42% of renters spend between 31% and 50% of their income on rent. (According to BC Housing, affordable is when 30% or less of your household’s gross income goes toward paying for housing costs).
“25% of renters spend more than 50% of their net income on rent, well above the national average of 16%,” the report states.
While it isn’t breaking news, Vancouver is Canada’s most expensive rental market. Due to steady demand and incredibly limited supply, the cost of renting has remained consistently high in recent years.
Royal LePage says that there is a bit of improvement on that front.
“With a boost in rental supply in Vancouver, competition in this segment is improving, although affordability remains a challenge for tenants facing some of the highest rental prices in the country,” said Nina Knudsen, a property manager with Royal LePage Sussex in North Vancouver.
Despite the prices, Vancouver is still a highly sought-after and attractive city, and Royal LePage calls the demand to live here consistent.
Looking to the future, 27% of renters say they plan on purchasing a property in the next two years, while 52% will not.
BC has introduced new legislation to help the rental market, like the recent Airbnb regulations that took effect on May 1. Knudsen believes provincial rental legislation “has caused some would-be landlords to step out of the market, a potential challenge for the creation of rental supply.”
Royal LePage’s report findings come from a Leger Opinion survey of over 1,500 Canadians aged 18 and over who rent their primary residence.