Renters spend 60% of salary to live in region

Renters are spending more than 60 per cent of their salary to live in Metro Vancouver, more than double the recommended amount, a report says.

April figures from liv.rent, an online renting platform, found that the average Metro Vancouver renter is spending 61.65 per cent of monthly income on rent.

This is more than double the recommended 30 per cent rent-to-income ratio and reflects the mismatch between supply and demand for housing in the region, the report said.

The report, published Thursday, said average rates for furnished one-bedroom units in Metro Vancouver rose significantly in April, increasing by 10 per cent from March, or about $251.

Unfurnished one-bedroom units went up by 1.68 per cent from March, or by about $39, to a new average of $2,376, according to the report.

The situation may improve in May, the report notes, when shortterm rental regulations come into effect May 1, possibly returning short-term rentals to the longterm market.

Liv.rent says the rates are following a similar trend last year, dipping in March before a substantial increase in April, and will likely continue a gradual rise throughout the summer.

B.C.'S annual allowable rent increase limit for 2024 is 3.5 per cent, but when a renter leaves a unit, the landlord can change the rent without limit.

West Vancouver had the highest average rental prices for all unfurnished units, according to the report, starting at $2,773 for a one-bedroom flat and rising to $4,751 for a three bedroom.

The cheapest place to live in Metro Vancouver, according to the report, is Langley where one bedroom will cost renters around $1,954 a month or $2,499 for a two-bedroom apartment.

A separate rental report out Friday found that average asking rents for all property types in Canada rose by 8.8 per cent in March, reaching $2,181.

The Rentals.ca and Urbanization's national rent report said while still showing substantial growth, this indicates some moderation from the 10.5 per cent annual increase recorded in February.

Out of the 35 Canadian cities ranked, North Vancouver and Vancouver were the most expensive rental places, with Victoria at No. 10 and Surrey in 11th spot. The least expensive places to rent on that list were Regina and Saskatoon.

On Tuesday, B.C. announced it is boosting the monthly rent supplement for seniors and allowing more of them to qualify.

However, one rental advocate told Postmedia without meaningful action by the B.C. NDP to rein in out-of-control rents, the subsidies amount to a game of catch-up that the government loses every time.