The apartment vacancy rate in Metro Vancouver dropped more than a full percentage point over the past year, according to Canada Mortgage and Housing Corporation (CMHC) data released June 11.
In April 2014, 1.8% of apartments were vacant, compared with 2.9% a year ago. One of the main reasons, said the CMHC, is the increase in immigration leading to a growing population.
“Vancouver is the destination for most international migrants coming to British Columbia and international migrants tend to rent prior to buying as they establish themselves in their new country,” the CMHC said in its Spring 2014 Rental Market Report.
One exception was in the vacancy rate of larger apartment units. Among those with three or more bedrooms, vacancy increased from 1.2% a year ago to 4.4% this year. This was driven in part by the move from rental to homeownership.
“Low mortgage interest rates, stable existing condominium prices, and employment growth may have contributed to renters in larger units making the transition to homeownership, thereby freeing up rental apartments,” the report said.
Across the province, the apartment vacancy rate dropped to 2.4% in April compared with 3.5% a year ago.
The average apartment rent in Vancouver grew by 3.6% from $1,052 in April 2013 to $1,090 a year later. Provincially, rent increased 3% from $960 to $989 over the same period.
