A staggering 25 per cent of B.C. renters are spending half of their monthly income on their monthly housing bill.
Comparing that with the national average of 16 per cent, once again, British Columbians’ wallets are taking the hit, according to the 2024 renters report from Royal LePage.
According to the report, British Columbians are still facing some of the highest rent prices in the country.
It found that 23 per cent of renters are spending 30 per cent of their income on rent, and 42 per cent are spending between 31 to 49 per cent of their income.
“With a boost in rental supply in Vancouver, competition in this segment is improving, although affordability remains a challenge for tenants facing some of the highest rental prices in the country. Still, demand to live in one of Canada’s most popular cities remains consistent,” said Nina Knudsen, a Royal LePage Sussex property manager out of North Vancouver.
“Empty nesters and working professionals make up a significant portion of our renter demographic, as do tenants who are landlords themselves.”
Knudsen said it’s common for renters to buy an investment property in a less expensive market and lease it out while continuing to save towards another purchase for a future primary residence.
In B.C., 26 per cent of renters said they are considering buying rather than renting before signing or renewing their lease.
Also, 27 per cent said they plan on purchasing property in the next two years, while 52 per cent will not.
“As interest rates have increased over the past two years, higher monthly carrying costs have put considerable strain on entrepreneurial landlords, prompting some to offload their units onto the resale market,” Knudsen said.
“With rates now beginning to trend downward, some investors may be seeing a light at the end of the tunnel. However, the most recent rate cut by the Bank of Canada will not be enough to encourage those landlords from selling their properties if further cuts are not made in the near future.”
The 2024 Canadian renters report found its results through a poll where more than 1,500 Canadians were surveyed.
Rent prices in Vancouver, while remaining the highest across Canada’s big cities, did slightly dip in 2024 compared with last year.
The average cost of a one-bedroom place in Vancouver in June is $2,650 a month, which is down about two per cent since 2023, according to a rental report from Zumper.
Burnaby’s one-bedroom rent declined by 0.8 per cent to $2,470, while two-bedrooms remained flat at $3,150.
Victoria’s one-bedroom rent climbed 3.8 per cent to $2,180, while two-bedrooms jumped 4.1 per cent to $2,780, according to data collected by Zumper.
Kelowna has an one-bedroom average of $1,900, which was down 0.5 per cent month over month. A two-bedroom was down 3.3 per cent month over month to $2,320.
— with files from Amy Judd