A new report pointing to growth in the number of high-paying jobs in B.C. suggests that property investors outside the pricey Lower Mainland will see vacancy rates drop and rents increase.
“Close to 90 per cent of jobs created in the province in the past six months were full-time,” reads a CIBC jobs report. “The sectoral composition of employment has also improved with strong gains in high-paying sectors such as utilities, manufacturing and finance.”
Much of the work in those growing sectors takes place in smaller markets outside of Vancouver, many natural resources-rich communities such as Prince George.
That’s good news for property investors in small town B.C., who have traditionally struggled to attract high-paying, long-term renters, compared to their counterparts on the Lower Mainland.
Analysts are, in fact, predicting, vacancy rates will shrink across the province, with those outside Vancouver seeing the highest percent growth in rents as well.
That phenomenon is expected to lead to a spike in new construction in those markets as more investors move in to build small-multifamily properties to meet the need.
The threat of that building spurt leading to a surplus of supply is unlikely, say economists, given the more stringent regulatory and underwriting standards of lenders.
Still, the same employment growth CIBC points to suggests long-term tenancy may actually shrink as those workers speed up the migration to homeownership.
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Source, Image: Canadian Real Estate Magazine, Design.Shuffle