Metro Vancouver Q1 2024 Rental Market

Overview: The Metro Vancouver rental market experienced significant trends in Q1 2024. This period was marked by rising rental rates, low vacancy rates, and high demand driven by factors such as immigration and economic conditions.

Rental Rates:

Average Rent Increases: The average rent for a one-bedroom unfurnished unit in Metro Vancouver increased to $2,376 in April 2024, showing a rise of $113 since April 2023. Furnished units are consistently more expensive, with an average premium of $371 over unfurnished units​.

• City and Neighbourhood Variations:
• West Vancouver: The highest rental prices, with unfurnished one-bedroom units averaging $2,886/month.
• Downtown Vancouver: The most expensive neighbourhood in the city, with one-bedroom units at $2,840/month on average​.

Langley: The lowest average rental prices for unfurnished one- and three-bedroom units​​.

Vacancy Rates and Market Tightness:

• Vacancy Rate: The vacancy rate in Metro Vancouver remained extremely low at 0.9%, consistent with previous years, making it one of the tightest rental markets in Canada. This tight market is further emphasized by a decreasin turnover rate, which dropped to 8.1%​
• High Demand: High immigration levels and rising mortgage rates have kept many potential homebuyers in the rental market, maintaining pressure on vacancy rates​​.

Income-to-Rent Ratio:

• Renters in Vancouver are spending a significant portion of their income on rent, with the average renter allocating about 61.65% of their income to rent, which is well above the recommended 30%​.

Supply Dynamics:

• New Developments: An increase in purpose-built rental units has been observed, with a 2.7% rise (3,144 new units) in 2023. The majority of new developments are one-bedroom units located in Vancouver and Surrey​​.
• Future Supply Growth: Areas like southeast Vancouver, the Tri-Cities, and Surrey are expected to see the largest growth in rental supply in the near future​.

Conclusion: The Metro Vancouver rental market in Q1 2024 continues to be characterized by high demand, rising rents, and limited availability. These conditions make it a challenging environment for renters, while landlords benefit from higher rental incomes and lower vacancy rates.