Rents in B.C. continue to be highest in the country, says yearly federal report

British Columbia continues to be the most expensive place to be a renter in the country, according to new data released by the Canada Mortgage and Housing Corporation.

The Metro Vancouver area once again topped the list of the average monthly rent for a two-bedroom apartment in a purpose-built development at $2,002.

The next closest metro area is more than $200 lower, with Toronto at $1,779.

The third and fourth most expensive metro areas were also in B.C., with Victoria at $1,669 and Kelowna at $1,690.

Overall, the average price of a two-bedroom apartment across all B.C. communities with at least 10,000 people was $1,721, up 11 per cent from 2021 and the highest figure in Canada.

Meanwhile, the vacancy rate in British Columbia was 1.3 per cent, down from 1.4 per cent last year and the lowest in the country outside Atlantic Canada.

Eric Bond, a senior specialist with the CMHC, said the increased pricesare tied to tight rental markets and inadequate supply.

"When demand for rentalis exceeding supply, it creates conditions when rents can increase particularly upon turnover," he said.

"It's an interesting dynamic that is taking place there, but all of this comes back to having a shortage of rental in B.C."

The annual CMHC reportis the only systematic national analysis done annually. For 2022 it included data looking at the increase in rents after someone had moved out of a unit.

In those situations, the average two-bedroom unit in British Columbia increased in rent from $1,742 to $1,927 a 11 per cent increase.

In addition, the average asking rent for vacant units owned privately jumped significantly to $2,373, a 43 per cent increase over the average price of occupied units at $1,658.

Bond said that one bright spot in B.C. was that 3800 new purpose-built rental units had been completed in the Metro Vancouver region, the highest number since they started compiling the figures in 1991.

But he said more needed to be done.

"That's a very welcome development, but the vacancy rate still decreased that means we continue to need more rental supply."

Vancouver Mayor Ken Sim agrees.

"We have an issue. We're seeing it now. We do not have enough supply.We have a lot of demand, so we have to build a lot more," he said.

You can read the full report here.