Regional planner reveals disparity in rental market

The number of low-income renters is increasing in Metro Vancouver. However, they cannot afford most of the new rental housing being built in the region.

Moreover, there seems to be a growing gap between low- and high-income renters in the Lower Mainland.

These snapshots are contained in a report submitted to Metro Vancouver’s housing committee by regional affordable-housing planner Laurel Cowan.

The report states that the number of low-income renter households “increased significantly for all family types” from 2011 to 2016.

Compared to the overall regional population growth of 6.5 percent, the number of low-income family households rose 24 percent; single-person households went up 28 percent; and nonfamily households increased by 41 percent.

According to the report, the sharp increase in the number of low-income nonfamily households of two or more people “could suggest that lower-income individuals are more likely to seek roommates to reduce costs”.

The report goes on to note that although “very low” and “low” income households make up about 60 percent of total rental demand in the region, social housing only accounted for 15 percent of new rental supply in 2018.

People with “very low” income earn less than 50 percent of the regional median household income.

In 2016, the regional median household income was $72,600. This means that a very-low-income household earns less than $35,000.

Meanwhile, a household with

“low” income earns 50 percent to 80 percent of the regional median household income. This equates to $35,000 to $60,000.

In 2018, 941 units of social housing were built in Metro Vancouver, accounting for only 15 percent of the 6,275 units of new rental housing developed during the year.

The document note that 85 percent of new rental has been provided through “market housing which is generally suited to moderate incomes and above”.

“Given these trends, it is clear that the demand for affordable rental housing for lower-income households will be an ongoing challenge and will require continued support and funding,” the paper points out.

According to the report, the secondary-market sector comprising accessory suites and laneway and coach houses accounted for the “largest proportion of rental housing completions”, or 46 percent, in 2018.

The report notes that these are “not guaranteed as affordable or long-term rental housing”.

Apartments and row houses accounted for 39 percent of new rental developments in 2018.

Meanwhile, low-income renters are getting left behind by other renters. From 2011 to 2016, the number of above-moderate-income households—those earning between $85,000 and $115,000—rose 26 percent. In addition, the number of high-income households—those earning more than $115,000—increased 19 percent.

“These trends suggest an increasing gap between lower- and higherincome renters, contributing to growing inequality in the region,” the report states.