Vacancies on the Up-Swing

The fall season is set to hand Vancouver landlords their biggest advantage over renters in years, according to a new report.

Tenants can expect to battle for rental units this fall, as the vacancy rate in that expensive city slips to just 1.1 percent, concludes the CMHC in its latest forecast. And as the number of units available continues to decrease, the rental rates are on the up.

The average for a one-bedroom unit is expected to jump from $964 to $1,005 this fall.

Vancouver’s traditionally low vacancy rates have been receding steadily since 2003. Heading into September, students will be scrambling to find apartments. The demand exceeds the supply, and this trend shows no signs of changing.

Although this is great news for investors, according to the City of Vancouver, a healthy vacancy rate should sit no lower than 2%. According to senior economist and managing director at BMO Capital Markets Earl Sweet, this isn’t just a trend specific to residential units. The strong demand for B.C.’s commercial real estate also benefits from low vacancy rates and high rental price tags.

“Higher occupancy, spurred by steady growth in employment, manufacturing, wholesaling and retailing, is reducing office, industrial and retail vacancies, while lease rates are edging upward,” says Sweet. “Meanwhile, large U.S. retailers are targeting what they view as the underserved Canadian market for expansion.”

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About Daryl & Wendy Ashby

Daryl was born and raised in Victoria, British Columbia and has worked as a Property Manager and Real Estate professional for the past twenty-six years. Daryl and Cheryl have are associated with the oldest established firm (1887) in Victoria, Pemberton Holmes. With a strong background in government policies and years of experience in land development, they bring experience to your needs that few of their peers can offer. Cheryl is Daryl's eldest daughter and offers the team over two decades of proven people skills coupled with a strong sense for the principals of negotiation. With strength in desktop publishing and marketing via Social Media, Cheryl excells in bringing to the team a broad knowledge of current technology. Loved by all those who make her acquaintence, you will find the team under Cheryl's stewardship a great choice to assist you in whatever your needs may be.
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