Rental Housing Market Trends
As the housing market shifts further and further towards rental opportunities, it’s important for potential buyers and investors to understand where the rental housing market is trending in British Columbia. Recently this market has seen an influx of investment and incentive programs with encouraging results.
In fact, according to one external review, those incentive programs have so far proven to be highly successful in delivering on their promised results. The study from CitySpaces Consulting has calculated that nearly 8,700 new rental units have been built since 2009.
However, the same study also noted that this supply is not doing enough to meet the demand for rental units. With the report noting that this development has not managed to make up for the shortfall created by decades of limited construction in Vancouver. The failings of the program have been attributed in part to the imbalance in financial gains between rental housing and the more desirable condo markets.
The report noted that there are a number of potential avenues for making the incentive program even more successful going forward. In particular, the report suggested that more needs to be done to make the program appealing to developers — in particular in terms of ensuring consistency and minimizing risk for potential developers. The report also noted that more needs to be done to shorten processing timelines — as delays are often a source of frustration for potential developers.