Vancouver isn’t just unaffordable for homeowners, it’s also unaffordable for most renters, according to a new report by Vancity credit union.
The credit union warns that workers who rent are being priced out of Vancouver, which could eventually hurt businesses.
“The report found that renter workers making median incomes in several industries face the real possibility of being priced out of the communities they call home,” Vancity says in a press release.
“ This trend could leave Metro Vancouver with a limited pool of talent to draw from.
According to the survey, only two neighbourhoods in Vancouver proper are affordable for a person making $40,000 a year: East Hastings and Marpole.
High rents and low vacancy rates continue to push renters further out of Vancouver into areas they can still afford: Southeast Burnaby, Delta, Surrey, White Rock, Langley, Maple Ridge, New Westminster, Tri-cities and Pitt Meadows
Rents in the Lower Mainland have increased 11.4% between 2011 and 2015 – far more than the average wage earner would have seen his or her wages increase.
Millennials are the hardest hit by the rising rents and low vacancy rates, since they account for 33% of renters in Metro Vancouver. One Millennial renter in a Vancity video says he has to share accommodations and has lived in a co-operative with up to 17 people.
The average rent in Vancouver is $1,144 per month. Vacancy rates are below 1% and have been for years.
There are few incentives for developers to build purpose-built rental accommodation, since there is more money to be made in developing properties for sale.
Vancity recommends governments provide tax breaks to give developers incentives to build more purpose-built rental accommodation.
