Canada Mortgage and Housing Corporation<\/a> (CMHC), Metro Vancouver\u2019s vacancy rate for purpose-built rental apartments fell from 2.6 per cent in 2020 to 1.2 per cent in 2021.<\/p>\nStudents and immigrants swallowed up rental supply in downtown Vancouver, where vacancy rates dropped to 1.6 per cent last year after a pandemic-related exodus pushed it four per cent in 2020.<\/p>\n
\u201cFrom both international and domestic origins, migration to the Vancouver area increased strongly in 2021 as borders reopened and B.C.\u2019s economy expanded,\u201d the report stated. \u201cIn particular, rental demand from international migrants is expected to remain strong over the coming years, given the federal government\u2019s higher immigration targets.\u201d<\/p>\n
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The national vacancy rate remained steady at 3.1 per cent in 2021, down slightly from 3.2 per cent in 2020.<\/p>\n
Although vacancy rates declined in 21 of the 37 markets surveyed in the report, they were stable in Montreal, which accounts for approximately 30 per cent of the nation\u2019s total rental market, followed by Toronto (15 per cent) and Vancouver (five per cent).<\/p>\n
Toronto\u2019s rental market bucked the national trend, as vacancy rose from 3.4 per cent in 2020 to 4.6 per cent in 2021, reflecting delayed pandemic recovery and limited rental demand in Canada\u2019s largest urban centre.<\/p>\n
In Vancouver, rental demand exceeded available supply. According to CMHC, approximately 1,600 purpose-built rental apartments were added to Metro Vancouver in 2021, representing a 1.4 per cent increase in total supply.<\/p>\n
\u201cUnits in new structures had higher rents and vacancy rates than units of all ages, though the differences were less pronounced than in 2020 as many new units found tenants,\u201d reads the report. \u201cResearch shows that new rental supply aids affordability at the regional level as new, higher-priced units free up lower-priced units and ease demand for existing housing.\u201d<\/p>\n
While vacancy rates dropped last year, affordability remains an issue. Average rents for apartment units across Metro Vancouver increased two per cent last year, similar to the previous year, with suburban apartments generally seeing higher rent increases than those in central areas.<\/p>\n
CMHC estimates less than a quarter of market purpose-built rental homes are affordable to households earning under $48,000 annually, and only one in 1,000 units are affordable to renter households in the bottom 20 per cent bracket of incomes.<\/p>\n
\u201cWhile some challenges remain, employment for younger people and workers in the accommodation and food services industries recovered strongly,\u201d said the report. \u201cBoth of these groups disproportionally rent. Renewed earnings allowed new rental households to form, particularly in central areas with high rents that had been vacated in 2020.\u201d<\/p>\n
Adding to the supply on available units in Metro Vancouver, rental condominiums increased by 2,550 units or 3.3 per cent in 2021.<\/p>\n
\u201cThese results contrasted the strong conversions of existing condominiums to long-term rental in 2019 and 2020, when property owners adapted to new housing policies designed to encourage long-term rentals,\u201d said the report.<\/p>\n
![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2022\/02\/jp-holecka-4MS-3QQTRv8-unsplash.jpg\")
<\/a>Photo: JP Holecka<\/a> \/ Unsplash<\/a><\/em><\/p>\n