For the first time in history more people left BC than moved here during the first half of this year. That’s had an impact on rents and caused some major landlords to rethink their investments, putting large rental blocks up for sale.
Link from Southseacompany:
“With immigration to B.C. hitting negative levels – more people left the province for other regions than arrived in 2020’s first half for the first time in history – Vancouver rents are declining while insurance premiums for apartment buildings have increased an average of 75%, property taxes have soared and capitalization rates have flatlined in the sub-3% range. This has resulted “in a dampening of enthusiasm to invest in the province’s biggest city,” according to Avison Young”
Read the full article here.
Southseacompany posted a few stories about our changing market and dropping rents as some people move away from city cores.
“People are leaving the cores of major cities, including Vancouver, and that has led to some rent drops.”
“The average monthly rent in Vancouver in October for a two-bedroom apartment was the highest in Canada at $2,712, but it was an eight per cent drop from a year earlier, the steepest fall in B.C.”
For a while there the most sensible money move if you had a small apartment available was to rent it out in a short term basis on Air BnB, but that market has crashed lately.
Does that mean more units looking for long term tenant and with more supply will we see lower rent prices? So far rents are down about 7% since December, will they bounce back soon?
Vancouvers empty home tax is bringing in some decent coin – almost $40 million in 2018.
If you believe in a vibrant vancouver and want to do your part to support it, you can own a home here and keep it empty – that extra tax income goes to support affordable housing and rent protections.
If you really want to go the extra mile, don’t report your empty home: Audits raises $22.1 million in taxes and fines from empty home owners.
Read more here.
Sorry to tell you, but we’re not number 1 – that honor goes to New Zealand, but Canada is right up there on this visual map of countries at the greatest risk of a bursting housing bubble.
Thanks to southseacompany for the link, see all the data here.