Vancouver Multifamily Market Report
Population and Labour Market Growth Drive Rental Demand;
Immigration Rises and Tourism Returns
Sky-high home prices direct potential buyers toward rentals. Housing demand in the Vancouver metro is severely outpacing supply, due to the presence of top tech firms and an elevated rate of immigration. As the nation raises its immigration targets for 2023 and beyond, Vancouver will remain a top choice for new entrants, further driving apartment demand. With single-family housing and apartment construction lagging behind population growth, Vancouver is experiencing a housing shortage, with the average price of a home sitting at $2.1 million as of the second quarter. With home ownership out of reach for many due to rapidly accelerating prices and rising interest rates, high-income earners are increasingly opting to explore the upper-scale rental market. The average rental rate is forecast to increase by a historic pace of 8.1 per cent year-over-year in 2022. This growth is expected to continue in the future, but at a less aggressive pace.