The Vancouver Life Real Estate Podcast Why have Vancouver Rental Rates Dropped by -7.2%
In this episode, we sit down and revisit the rapidly shifting rental market landscape with returning guest Keaton Bessy, Property Manager and Owner of Greater Vancouver Tenant and Property Management (GVANTPM). The last time Keaton joined the show 8 months ago, rental rates were steadily increasing month after month, with no signs of slowing down.
However, the market has since undergone significant changes. A surge in inventory, elevated rental rates, the banning of Airbnb in secondary properties, and recent modifications to residential tenancy laws have collectively reshaped the market dynamics. Keaton dives into the differences between what we are reading compared to his on-the-ground insights into these developments.
The discussion begins with a market overview, highlighting that while rental rates remain high, Vancouver and Ontario have seen a notable softening year over year. Despite this, Vancouver continues to be the most expensive rental market in Canada, with the average rent for a one-bedroom apartment down 8.4% sitting just over $2,750 a month and a two-bedroom down 6.4% from last year but still well above $3,650.
The discussion explores what could be causing a drop in the rental market and whether this softening is a result of a recent surge in inventory, a rise in unemployment figures, or if it is influenced by broader government policy decisions.
The conversation then shifts to the impact of immigration on the rental market. With a record 1.2 million person year-over-year increase in Canada's population, primarily driven by non-permanent residents, we examine whether the current softening of rental rates is a temporary blip or indicative of a longer-term stabilization trend. Keaton shares his views on whether these immigration trends will continue to apply upward pressure on rental prices and inventory.
The episode also touches on the dynamics of the mortgage market, where rising mortgage originations and potentially lower carrying costs are discussed. The hosts question whether these factors might lead to a future decrease in rental rates or if available inventory levels will continue to play a more significant role in determining rent prices.
Lastly, and perhaps most interestingly we delve into a recent and controversial ruling by the Residential Tenancy Branch (RTB) in Vancouver, which approved a 23.5% rent increase over the next two years for a local landlord.
This decision has sparked widespread attention capturing more than 325,000 views in just a couple of days, and Keaton, who broke the story has been closely monitoring the situation and provides an in-depth analysis of the ruling and its potential implications for both landlords and tenants in Vancouver.
Throughout the episode, you will gain a comprehensive understanding of the evolving rental market and what these changes mean for property owners and renters alike.
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Dan Wurtele, PREC, REIA
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Ryan Dash PREC
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