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Metro Vancouver’s Housing Crisis: Urgent Need for Affordable Rentals

The recent housing report released by the Metro Vancouver district highlights a critical disparity between the available affordable rentals and the urgent requirement for new housing to avert further homelessness. Jill Atkey, head of the BC Non-Profit Housing Society, emphasized that the region requires a staggering 11,400 new affordable rental units annually.

This figure marks a dramatic jump from the average of just 433 units constructed each year from 2018 to 2023.

Atkey noted that at the provincial level, British Columbia needs approximately 12,500 affordable homes each year. However, the government plans to deliver only around 4,500 such units annually in the upcoming three years.

“To address this shortfall, substantial federal investment is essential, but there has been a noticeable delay in these funds,” she stated.

While acknowledging the “historic investments” made in affordable housing since 2018, Atkey pointed out that the trickle-down effect of this support is slow, leaving many residents insecure in their current rental situations. Many fear moving due to potential rent increases, creating a sense of entrapment.

“Numerous seniors have resided in their homes for decades, enjoying rents around $800 or $900 a month,” Atkey explained. “If they must relocate—perhaps due to their buildings being sold and redeveloped—they could face a high risk of homelessness.”

This demographic is increasingly vulnerable, as seniors represent the fastest-growing group among those experiencing homelessness in the area.

Escalating Need for Social Housing

The annual housing data report from the Metro Vancouver regional district reveals a worrying 33 percent rise in homelessness since 2020. Additionally, the number of households on the social housing waiting list surged by 14 percent last year, exceeding 21,500.

According to BC Housing, the majority of those on the wait-list are seniors and families. Atkey cautioned that the wait-list figures may not fully capture the depth of the housing crisis. “These numbers reflect only those who have registered, not the entire population in need of affordable housing,” she remarked in a recent interview.

While social housing stock increased by 5.8 percent since 2022, with Vancouver housing nearly half of the region’s units, there is still a pressing need for a greater variety of rental options. The report indicates that rental price growth has slowed to 4.5 percent in 2024, down from a staggering 9.1 percent the previous year, coinciding with a peak in rental construction unseen for two decades.

However, it also noted a 35 percent rise in housing starts and a 48 percent increase in completions from 2015 to 2024, with purpose-built rentals representing 37 percent of new starts and 31 percent of completions in 2024. Despite these numbers, the report stresses that more action is required to attain historical construction rates per capita and to accommodate the anticipated population surge.

Particularly concerning is the scarcity of family-sized rental units; only 30 percent of all purpose-built rentals in the area offer two or more bedrooms.

A Long-Standing Issue

The report points out that for nearly a decade in the early 2000s, both rental starts and completions fell significantly, leading to substantial pent-up demand for housing. “This has been a long-term issue, with the roots of the crisis extending back to the 1980s,” Atkey noted.

As government initiatives take time to yield results, Atkey highlighted the importance of the B.C. government’s Rental Protection Fund, which aims to bolster and secure affordable rental availability. Last year, this fund facilitated the acquisition of 35 buildings, transitioning them from the private market to the non-profit sector.

“This strategy not only increases our supply of affordable housing but also helps safeguard the affordability of these units for the long term,” she asserted.

With nearly 40 percent of Metro Vancouver residents renting and a marked trend towards renting—particularly pronounced among households aged 25 to 44—Atkey pointed to low rents as a further indicator of the region’s housing stress.

The median rent for purpose-built rentals surged to an average of $1,929 last year, climbing to $2,541 for condominium rentals. Over a 22-year span from 2002 to 2024, median rents surged by 143 percent, while average wages grew by only 93 percent and inflation rose by 58 percent.

Looking ahead, rents are expected to continue their upward trajectory, albeit at a slower pace. Meanwhile, the vacancy rate across Metro Vancouver increased to 1.6 percent in 2024, up from just 0.9 percent in the prior two years but still far below the healthy threshold of a minimum of three percent.

Source
globalnews.ca