No more free rent in Vancouver

Last updated Jun 20 2005 08:54 AM PDT
CBC News

VANCOUVER – The Vancouver apartment vacancy rate has dropped in the past year, spelling the end of incentives that often included a month's free rent for tenants signing a lease.

Those sorts of deals were the result of a high vacancy rate, after many former renters took advantage of low interest rates and bought condos.

Debbie Johnson does marketing work for Gateway Propertyy Management – which manages about 6,900 Vancouver rental suites. And she says there were all sorts of perks for tenants.

"I can remember opening any given newspaper and seeing landlords offering DVDs, free rent, first months free, last months free," she says.

But all that is in the past as the market has tightened up, creating stiff competition for affordable places.

"It's horrible. There's just a lot of people and not many places," says Bryn Laurillard who is still looking for a place to live.

Canada Mortgage and Housing Corporation analysts says the change is a product of the booming B.C. economy. And they say that many people who have bought condos are still living in rental suites waiting for the new units to be built.

The latest estimates from CMHC show Vancouver has a vacancy rate of about 1.3 per cent – down from a high of two per cent in 2003.

Still, you would think there would be ample supply as the people move into their condos from their apartments. Rents will go up, more bad news for the increasingly accomodation poor Vancouverites.

Still, you would think there would be ample supply as the people move into their condos from their apartments. Rents will go up, more bad news for the increasingly accomodation poor Vancouverites.
Those units are being absorbed by those who have just moved to Vancouver. Vancouver is experiencing a growing economy, high in-migration and as always, increasing immigration.

CMHC figures also do NOT include condos that are rented out. They only include buildings that are dedicated rental apartment blocks. There may still be lots of condos for rent - but at higher prices.

Your an idiot to rent any way, buy a condo, in some cases like Infinity the morgage is less then an normal rent and you can sell it later and make a profit. Im never goin to rent.

I think there is still probably a problem with the lack of affordable rentals in Vancouver and every other major city for that matter. Sure its great to see people be able to transition to ownership and to be able to build equity via real estate, but there is still a large percentage of people who can't do that.

Your an idiot to rent any way, buy a condo, in some cases like Infinity the morgage is less then an normal rent and you can sell it later and make a profit. Im never goin to rent.


I mostly agree with you but what happens when interest rates go up? Some people's budgets are so tight that a slight fluctuation in rates could spell disaster

I mostly agree with you but what happens when interest rates go up? Some people's budgets are so tight that a slight fluctuation in rates could spell disaster

When one can now get a mortgage with a 10-year term at a rate of 4.85% or better, it does provide some stability over the long term.

Those with shorter terms or fixed rates would, of course, be vulnerbale to upward interest rate fluxuations, but the opportunity does exist to lock in at these low rates.