More people to enter rental market‏

With affordability and cost pushing more people into the rental market, Vancouver is now being dubbed the new Manhattan.

Following new council changes for condo maintenance and rising affordability issues, more Vancouver residents are expected to stay in the rental market for longer.

While 52 per cent of Vancouverites currently rent, this number could rise even further as more are pushed out of the market. “It is a big possibility,” says Russell Sharp from Sharp Real Estate. “Despite the cancellation of the visa program earlier this year, international demand for houses here is still very strong. It's the high cost of buying and maintenance that forces many young buyers out of the market."

A new requirement was recently pushed through that will see special assessments on older buildings. This may lead to high repair and maintenance costs for owners, a move that may turn some buyers from buying such units in the future, says Sharp.

Speaking to CREW, Sharp says that he is seeing more baby boomers hand over their inheritance to their children to help them get on the market. “Unless you have some sort of capital, it is very hard for this generation to buy a property,” he says. “This is a good time for investors to get into the market as coupled with the low vacancy rate, there is such a healthy demand for rental properties.”

Vancouver rents are restricted by the 2.2 per cent limit imposed by the provincial government with Sharp adding that investors should concentrate on the lucrative appreciation values.

Written by Grainne Burns