Demand Increase In Vancouver Rental Market
Goodman Report mentioned that the apartment sector in Metro Vancouver pointed out the area’s low supply in the midst of the continuous growing demand for rental housing in Vancouver. Mark and David Goodman, quoted; “It’s anticipated that the regional population will increase by an average of 35,000 per year until 2040.”
The average price for each suite in Vancouver was inflated by immense demand during last year to $377,000. It went up by 52 per cent unlike the year before. The chances of the trend ending anytime from now were let go by the writers of the report. Both of them stated; “The Goodman Report expects local landlords to remain insulated from any apparent decline in tenant demand or softening of rents.”
With the approval of 9,470 rental units across the Lower Mainland that have been built for a specific purpose, which have been given the go-ahead and already commenced construction, caution was given in the report that this will not be enough to meet the demands of the public.
David Goodman said; “You can’t just have condos and have a viable society. You need rentals. And if you are not building enough rentals, people are going to throw their hands up in disgust … and they are going to leave our city. These are often people who are educated and have lost all hope of even renting, so they’ll go to Alberta or back east … where they won’t have such a stressful time finding a roof over their heads.”
The situation was similar to that of the city’s industrial real estate segment. The latest report from CBRE anticipated that the Vancouver market will be at risk of an accelerate increase in the prices anytime soon, as the supply for industrial space by the city cannot meet up with the current and proposed demand levels.