Prince George’s rental vacancy rate is climbing.
A recently released report from Canadian Mortgage and Housing Corporation says it was at 4.4% in October, up from 2.9% the same time last year.
Market Analyst Taylor Pardy says the poor unemployment numbers this year likely play a direct role in the rise.
“A reduction in full time employment opportunities tends to impact youth the most, which has an immediate impact on the rental market.”
Affordable home prices may also be luring residents out of the rental market.
“Total MLS sales are up 8% while the average price is up 5%.” Pardy said “For renters out there with steady jobs, choosing to move into home ownership may have contributed in putting downward pressure on demand for rentals.”
Pardy pointed out that despite the rise in vacancy rates, the overall supply of rental units in PG has fallen. In October there was 3,572 purpose built rental units in Prince George, down from 3,630. He says a decline is usually due to demolition of older buildings or renovations taking units offline.
Despite the climbing vacancy rate, the average monthly rent increased 1.8% to $766. Downtown Prince George enjoys cheaper rent at $717 a month compared to $795 for in the outlying areas.
“Rent increases may have taken place earlier in the year, or the composition of units could have changed; renovations could have increased the rental values of some properties.” Pardy said
The average rental property in BC goes for $1,042 a month, while the vacancy rate sits at 1.3%.
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