Higher Rents Could Prompt More People to Buy
Rent has been the more affordable option for many people in Vancouver, but the high cost of housing could add pressure to this market, causing rental prices to outpace real estate in terms of growth, according to rating agency DRBS.
Rental Prices on the West Coast
Prices of rental property typically parallel the housing market, but in Vancouveer appreciating property costs have outpaced the rental market for nearly a decade.
The same thing happened in the States before the market collapsed and corrected itself. However DBRS is not predicting any such calamity for the West Coast. Rather, these experts feel that as more people look towards rentals, rent prices will increase and the housing market will soften, gradually bringing the two back in sync.
Rental Rates Increase in Vancouver Real Estate Market
“It is more than likely that rental rates will increase at a faster rate than that of home prices going forward,” the rating agency says in a report. “Furthermore, a major correction seems unlikely given the long-term stability of the Vancouver market.”
For several years, Vancouver has had the dubious distinction of Canada’s most expensive city, but DBRS believes that limited development space coupled with growing population will serve to insulate homeowners from serious pitfalls.
While the housing market slowed between 2008 and 2013, it has since rebounded and transitioned into a seller’s market, with single family housing particularly in high demand.
With rents poised to rise, it may be the right time to explore affordable housing options like townhouses, condos, and duplexes. If you’re ready to explore this market, contact vancouvertownhouse.ca today.