Luxury rentals sprout in Vancouver
June 04 2018
Condominium developers in Vancouver are building luxury rentals to capture what is seen as a growing trend in Canada’s most expensive housing market.
Today’s high-end rentals often include on-site amenities to rival market condominiums. Starting rent for the upscale units is from $1,750 for a one-bedroom and can easily surpass $2,000 per month.
Jason Turcotte, vice president of development for Cressey, said there are two primary tenants: Millennials who have well-paying jobs but don’t have the money for a down payment for a home; and baby boomers who have realized gains from selling their family home but don’t want to reinvest all of it into another home.
“The economics, though, can definitely be challenging,” said Brent Sawchyn, principal of PC Urban Properties. “The approval process is just as long for a rental building as it is for market condominiums, construction and land prices are constantly rising, and in Canada we haven’t had the government policies to encourage rentals that you see in the States. Since the MURB [Multiple Unit Residential Building] program ended in the late 1980s, there has been virtually no new product because it’s been far more lucrative to build sale product.”
David Hutniak, CEO of LandlordBC, says he’s seeing more new rental properties being built with amenities that mirror those found in market condos. “But ultimately we need so many more rentals here – rentals that are aimed at local incomes.”