Vancouver Multifamily Investment Forecast
Immigration, Tourism Recovery and Housing Landscape Spell Promising Outlook
Sky-high home prices push potential buyers toward rentals. Demand for housing in the metro is robust, due to the presence of top tech firms and a high rate of immigration — an economic driver that should strengthen as the nation raises its immigration targets for 2022 and 2023. Meanwhile, single-family housing and apartment construction has lagged population growth, leading to a housing shortage. This has created an environment where ownership is very challenging in the GVA for many mid-to-high-income residents, as a record-low inventory of homes available for purchase is driving up prices at a hasty pace. With ownership out of reach, many prospective buyers are choosing to rent, which is fuelling apartment absorption.The return of international tourism should help the service sector add jobs in 2022 as well, further boosting demand for lower-tier rentals. While the overall GVA vacancy rate has yet to realign with the 2019 level, availability in Downtown Vancouver is already tighter than it was prior to the onset of the pandemic.