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<\/a>Photo:\u00a0Tom Nevesely<\/a> \/ Adobe Stock<\/em><\/p>\nAs more renters return to Vancouver\u2019s urban areas, purpose-built rental rates across the region continued to rise during the first months of 2022.<\/p>\n
In its Vancouver Rental Take report for Q1-2022, Zonda Urban stated that the Metro Vancouver rental market kicked off the year with strong renter activity in Q1-2022. As most sub-markets experienced higher rental prices, availability rates fell in tandem. However, Metro Vancouver could see additional inventory hit the marketplace in the second-half of 2022 as multiple projects complete construction.<\/p>\n\n
\u201cThe lifting of Covid restrictions along with an increase in hybrid work options has allowed for the continuation of renters moving back into urban sub-markets and transit accessible neighbourhoods, which was a trend that emerged in 2021,\u201d said the report. \u201cThe most notable observation over the first quarter of 2022 was the steep increase in average rental rates being achieved throughout the market.\u201d<\/p>\n
Available listings drop from quarter to quarter<\/h3>\n
In Q1-2022, one low-rise wood frame development and two concrete high-rise developments started to lease in Metro Vancouver. A total of 199 new rental units were released to the market, 72 per cent less than the 702 units that became available during Q4-2021.<\/p>\n
During the first quarter of 2022, purpose-built rental availability dropped 3.4 per cent on a quarterly basis. Availability within fully-leased buildings \u2014 those projects that completed their initial leasing campaign and rented all of their units \u2014 declined 0.5 per cent quarter-over-quarter to 1.2 per cent during Q1-2022. Meanwhile, availability in active projects \u2014 buildings that are in their initial lease-up campaign \u2014 dropped to three per cent, down from five per cent in Q4-2021.<\/p>\n
The North Shore sub-market had the most new rental inventory in the region during Q1-2022 with 228 available units, down slightly from the previous quarter.<\/p>\n
\u201cThe decrease in overall availability in Metro Vancouver primarily resulted from the limited number of releases into a market combined with persistent demand,\u201d the Zonda Urban report noted. \u201cOf the 199 units released onto the market over the quarter, 149 were leased.\u201d<\/p>\n
Zonda Urban is currently tracking 20 projects with 1,792 units in the interior finishing stage of construction that are likely to be completed within the next six to nine months.<\/p>\n
Price difference between most and least expensive sub-markets widen<\/h3>\n
As fewer purpose-built rental units became available for lease, rental rates in Metro Vancouver grew during Q1-2022.<\/p>\n
The overall average per square foot for rents in Q1-2022 grew $0.39, or 11.8 per cent, compared to last quarter. When comparing recently turned-over units to initial lease-up rates, prices for junior one bedroom units have grown the most, rising 32 per cent.<\/p>\n
The difference between the most and least expensive submarkets in Metro Vancouver \u2014 Downtown Vancouver and Abbotsford \u2014 was $2.53, a notable increase from $1.85 that was recorded in Q4-2021. In Downtown Vancouver specifically, rental rates increased $0.53 during Q1-2022 as a result of low inventory levels and new project launches. In the same quarter, ongoing absorption of actively leasing projects pushed rental rates up in Vancouver East and Surrey by $0.18 and $0.22 per square foot.<\/p>\n