the rennie landscape - fall 2022

housing

CAN WE ADD RENTAL WITH INTENTION?

Almost everyone agrees we need to grow our stock of rental housing. The truth is, we have been—mostly thanks to investor owners.

The supply of rental housing comes in many forms, from purpose-built apartment buildings to individually-owned homes to basement suites. Together, these forms of accommodation represent an important segment of our dwelling stock, providing an alternative to ownership, allowing for flexibility in mobility, requiring lower payments, and representing the first step for many onto the housing market ladder. The purpose-built segment of our rental market, as far as apartments are concerned, accounts for the largest proportion of homes of this tenure in Metro Vancouver, at 59% (in 2021), with the remaining 41% existing with the secondary market (that is, as

individually-owned condos). Notably, this split in burden between the primary (purpose-built) and secondary markets has shifted considerably over the past decade, with the secondary market accounting for almost 4 out of every 5 net additional rental homes available. With features such as professional management, enhanced amenities, and security of tenure—thereby enhancing the experience of those living in what should be the most accessible segment of our housing stock—it would behoove the collective to buttress the addition of new rental homes in the purpose-built segment in the years ahead.

NOT ON PURPOSE: THE SECONDARY RENTAL MARKET ACCOMMODATES DEMAND

secondary 29%

purpose built 21%

rental apartment stock growth 2011-2021

rental apartment stock 2011

purpose built 71%

secondary 79%

SOURCE: CMHC DATA: RENTAL APARTMENT STOCK IN METRO VANCOUVER, PURPOSE-BUILT AND SECONDARY

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