Why rental prices are likely going to get worse

Good morning,

I wish I had some good news about rental prices in Vancouver, but according to a new story in today’s newsletter, it may be about to get even worse. The impact of rising interest rates not only affects homeowners but rental prices as well…

Plus, we’ve got a look at how South Vancouver has disproportionately fewer services, as well as some events to check out this week.

Let’s get to it!

Correction: In Friday’s newsletter we said that there was a 40.7 hour wait time in emergency room visits. That number refers to how long it takes an emergency department to deal with someone once they arrive at the hospital. Vancity Lookout regrets the error.— Geoff Sharpe, Vancity Lookout newsletter writer

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WEATHER

Monday: 24 🌡️ 14 | 🌤

Tuesday: 23 🌡️ 16 | 🌤

Wednesday: 24 🌡️ 16 | 🌤

WEEKLY LOOKOUT

Taxes need to rise: At least that’s according to a new report city staff will present to council this week. They warn that property taxes will need to rise by about nine percent in the next five years, or the city will face service cuts. Cost pressures, population growth, climate change adaptation, tight labour markets — it’s all creating massive pressure on city finances. [Global]

Keefer decision: The proposal to develop 105 Keefer St. has been going on since 2017, but this week we will finally have a decision, as the city’s development permit board will decide today whether to approve it. This is the third time it’s been before the board. Here’s a brief history of the project to understand what happened. [Vancouver is Awesome]

HOUSING

Some more bad news for Vancouver renters…

You thought it couldn’t get any worse for rent prices but — surprise! — it has, at least according to rental data from Canadian Mortgage and Housing Corporation (CMHC).

The findings: According to an analysis by the Financial Post, new renters in cities such as Vancouver and Toronto are on average paying $500 more for a two-bedroom apartment in the last year, compared to units that are already occupied. So if you’re planning on moving to either city, be prepared to pay more.

What’s going on: Rental prices have skyrocketed recently, with a two-bedroom apartment costing on average $3,741 per month, which is a change of 17.6 percent year-over-year. Vancouver has the most expensive rental market in Canada, according to CityNews.

Looking ahead: Don’t expect it to get better anytime soon. New data from the CMHC also shows rents are likely to climb as people purchasing investment properties decline due to higher costs from interest rates, according to CBC.

You’re probably asking, why rents would rise if the number of investment properties purchased decline. Isn’t that a good thing? Yes and no:

• Yes, because it means more inventory is available for those looking to buy a home.

• No, because it means fewer people or companies are putting these properties up for rent.

Fewer purpose-built rentals mean the rental supply has to come from somewhere, and private renters fill the market. Those investment-purchased homes account for 30.5 percent of total apartment rentals, according to CBC.

Zoom out: The data also shows that rentals just aren’t affordable anymore. According to an analysis by Business in Vancouver, the CMHC data shows only one percent of condos are rented out at what is considered an affordable price. That is defined by the ability for someone in the lowest 20 percent of incomes to be able to afford it.

• Lucky Montreal, their number of apartments considered affordable is 23 percent. Mon Dieu!

What it means: This is a new measurement by the CMHC and it comes at an important time. It’s not just homes that need to be more affordable, but rental units as well. The prospect of both housing prices and rental prices being unaffordable is a double-whammy for large Canadian cities.

VANCOUVER BY THE NUMBERS

🔥 ​​7.4 million: The amount of hectares burned by forest fires this year in Canada, the largest since 1985. And the season still has many months to go… [Twitter]

👮 9: The number of homicides this year, the latest at East 8th and Renfrew Street. A body was discovered on one of the properties on Wednesday and so far there’s been no arrests. [CTV]

CITY COUNCIL

South Vancouver, the neighbourhood Vancouver forgot?

What happened: This week council is set to debate a motion about fixing the inequities faced by South Vancouver, including the lack of social spending, according to the Vancouver Sun.

Background: OneCity Coun. Christine Boyle’s motion which will be debated at the Standing Committee on Policy and Strategic Priorities on Wednesday. A study by SFU outlined how residents have “poorer access to transit, health care and child care facilities, as well as parks, community centres and arts and cultural opportunities.”

• Another key issue is language barriers, with 64 percent with a non-English first language according to the motion. The median personal income is also at least $6,000 lower, with $35,600 versus $42,000 in Vancouver.

The neighbourhoods of South Vancouver include Killarney, Victoria-Fraserview, Sunset, and Marpole.

The proposal: If passed, the motion would call on city staff to engage with groups to identify policies that could improve the community. The types of projects could include improving food security, water parks, public washrooms, transit and much more according to the Vancouver Sun.

Reading between the lines: Beyond the importance of addressing this issue, it’s a savvy move by Coun. Boyle to position herself as a champion for those areas.

On a personal note: This newsletter tends to miss out on issues facing this community. If you live in the area and wish to have more issues like this covered, please don’t hesitate to reach out about a story that we can include.

NEW JOBS

Find your new dream job in Vancouver:

1. Manager, content marketing at BC Lottery Corporation

2. Communications manager at Vancouver Board of Trade

3. Operations manager at Vancouver Foodie Tours

4. Planner, special projects office at City of Vancouver

5. Copywriter at the Vancouver Canucks

THE AGENDA

🗳 In the end, the provincial by-elections weren’t even close, with the NDP winning both by a wide margin. Here in Vancouver, Joan Phillip cruised to victory in Vancouver-Mount Pleasant, with 68 percent of the vote compared to 13 percent for the B.C. United candidate. [Elections BC]

✈️ If you flew into YVR this weekend you may have noticed some major flight delays. This was because of problems with NAV Canada navigation systems. [CityNews]

🚦 The city says they will be adapting some slow street barrier locations — those big yellow cement barriers — to accommodate loading and increase visibility. [Daily Hive]

📉 A new study says Metro Vancouver businesses are struggling to expand because of financial pressures, as fewer can take on new debt to expand, and a growing concern around the potential for future sales. [CTV]

🏗 City planners in Metro Vancouver shared at a conference the need to ensure there is enough commercial building in the region, to account for the expected increase in jobs from population growth. [Business in Vancouver]

💥 The owner of a JJ Bean that was shut down due to an explosion at a BC Hydro vault is asking for compensation after a third-party report found many of the vaults were deemed high-risk and needed to be replaced. [CTV

EVENTS

This week

Ponyo | VIFF | Monday 8:30 pm | Miyazaki’s popular story about a sea spirit and the power of the sea | Tickets $15

Mamma Mia Dinner and a Movie | Today, 7 pm | Hollywood Theatre Present | Grab some food courtesy of Nuba and then enjoy the hit classic musical, two tickets and meal included | Tickets $95

blink-182 Tour 2023 | Rogers Arena | Tuesday, 7:30 pm | Come watch the band live on tour and relive all their classics | Tickets $89 and up

Vancouver Tech Morning Coffee | The Coffee Bar | Tuesday, 8 am | Come meetup with other tech community members | Free

Nickelback | Rogers Arena | Wednesday, 6:30 pm | The band you love (and love to hate) is playing live this week, and it’s affordable | Tickets $81 and up 

Back to the Future | VIFF | Thursday, 6 pm | More than just a movie, join the movie’s Director of Photography, participate in the costume party, trivia and 80s cocktails and snacks | Tickets $29

Bif Naked | Rickshaw Theatre | Thursday, 7 pm | Come watch the artists perform with guests The Pack A.D. and Ché Aimee Dorval | Tickets $38

The weekend

Vancouver Reggaeton Fest | Come check out this all-ages event and experience Latin culture, music and food | Tickets $18.15

Canada Together | Canada Place | Saturday, 11 am | Come celebrate Canada Day with performances, a kids zone, Indigenous displays and food trucks | Free

Jaws | Rio Theatre | July 1, 5:45 | The movie that started the summer blockbuster you need to see on the big screen | Tickets $11.42

Ongoing

Vancouver International Jazz Festival | Throughout Vancouver | Today until July 2 | The popular jazz music festival with events all around the city | Free + paid events

James Cameron Challenging the Deep | Science World | Ongoing to December | Explore the deep with Cameron’s deep sea exhibit starting today | Tickets $33

SPORTS

⚽ The Whitecaps won 3-2 against the Los Angeles FC at BMO Stadium. It’s the first time Vancouver has beaten them in their last eight games. [The Athletic]

🏒 Canucks have met with draft prospect Tom Willander, who, surprise, is from Sweden, and may be chosen with the Canucks’ 11th draft pick. [Daily Hive]

🏒 Speaking of the Canucks, the team will only have six pre-season games this year, with only two at home, and one at the Abbotsford Centre, the home of their affiliate team. [The Province]

🏈 The BC Lions won 30-6 against the Winnipeg Blue Bombers, and now have a 3-0 record which is top in the West…[CBC]

🏈 …Thanks to a defence that is making mince meat out of opposing teams’ offence. [The Province]

⚾ The Canadians lost 1-2 on Friday, won 4-1 on Saturday, and lost 4-6 on Sunday against the Eugene Emeralds in baseball this weekend. The team now has a record of 29-29. [MILB]

COMMUNITY HIGHLIGHTS

• Here’s a handy map of all the parks and beaches you can drink at (legally) this summer. [Daily Hive]

• This video breaks down how Vancouver house prices compare to celebrities’ homes. It’s… not good for Vancouver. [TikTok]

• If you’re looking for Greek food recommendations, Reddit users say My Greek Taverna, Socrates, Stinaki and Apollonia are all great options. [Reddit]

• Congrats to Stanley Park which was ranked #22 in Trip Advisor’s Travelers’ Choice — Best of the Best Things to Do. [Daily Hive]

• If you’ve ever heard of a house called a Vancouver Special, here’s a good example. [Reddit]

TOP PHOTO

What a shot of the beach this weekend!

GAME TIME

If you read today’s newsletter closely, you’ll know the answer — what’s the percentage of rentals that are considered affordable in Vancouver? Reply to this email with your name and answer to be included