Navigating the Housing Hurdle: The Crisis Facing Renters in British Columbia

It’s the end of the month and your rent is due. Have you ever been in a situation where, after rent has been accounted for, you’ve had to choose between keeping the lights on or putting food on the table? It’s safe to say no one wants to find themselves in this situation, and yet, this is the reality for many BC renters.

Due to factors such as inflation, rising rental rates and economic fallout from the COVID-19 pandemic, renters in BC are facing significant housing challenges. BC Rent Bank is a backbone agency providing support and funding to BC’s provincial rent bank network. In 2023-2024, we continued to see the rent to income ratio climb with BC renters who applied for rent bank loans. In 95% of applications, renters reported they’re spending more than 30% of their income on housing, with 69% spending more than 50% of their income. BC Renters found their ability to comfortably cover other expenses was limited, and this put them at higher risk of homelessness.

BC Rental Housing Marketing: How Did It Get This Bad?

According to the 2024 Rental Market Report by CMCH, Vancouver boasts the most expensive rental market in Canada, with an average monthly rent of $2,181 for a two-bedroom, purpose-built apartment. The rest of British Columbia is not far behind. Canada-wide, we saw record-low vacancy rates (1.5%) and record-high average rent growth (8.0%) in 2023.

So, What Factors Are Contributing To This Crisis?

• Post-pandemic problems: With many businesses closing their doors, unable to financially recover from the challenges they faced during the COVID-19 pandemic, many workers suddenly found themselves unemployed. Many also missed out on crucial pay during this period, due to extended sick leave.
• Influences of inflation: Compared to June 2023, BC consumers in June 2024 saw a 6.9% increase in the cost of shelter, a 3.3% increase in the cost of food, and a 3.0% increase in costs related to health and personal care this year so far.
• Rising rental rates: Rental rates in BC are at an all-time high and wage growth isn’t keeping up. Lower-income renters are having an increasingly difficult time finding affordable housing because of this discrepancy, along with low vacancy rates.
• Tapering off turnover: Many renters feel unable to move to a different rental or to buy a home because of below-average vacancy rates for more affordable units in major cities. According to Metro Vancouver’s Housing Data Book 2023, only 29% of all purpose-built rental units have two or more bedrooms, making it difficult for families to move into larger accommodations.

Rental Rates Aren’t The Only Problem

According to the Canadian Social Survey (CSS) collected in 2021 and 2022, BC residents were less likely to report high life satisfaction, with only 48% of the population reporting high overall life satisfaction compared to the national average of 51.7%. Nearly two-thirds of Canadians aged 15 to 29 rent their home. Unsurprisingly, this group of younger Canadians in particular were more likely to report lower life satisfaction and mental health.

Rent banks are local non-profit organizations across BC that provide important eviction prevention and housing stability services to help renters struggling to maintain their housing. They’re also able to connect renters with other services, including:

• Financial literacy and debt relief
• Government benefits and housing supports
• Physical needs such as food and clothing
• Referrals that support physical, mental and emotional well-being

At BC Rent Bank, we’ve been supporting BC renters for five years and, as awareness of our program increases, we continue to see growth in the demand for our services beyond financial support. More people are turning to us for supplementary services such as advocacy, mediation, referrals to other agencies and help accessing government support.

To help us determine where our help is needed most, we’ve added new intake questions to our applications and focused on establishing meaningful partnerships with other support agencies. One example of this is partnering with BC Hydro to allow rent banks to act as authorized representatives to approve renters for the Customer Crisis Fund and reduce the burden on renters.

We believe housing is the foundation of healthy communities and families. By supporting BC Rent Bank, and your local rent bank, you’re helping us reduce homelessness and prevent eviction for renters in your province. Find out how you can support our program.

Are you currently experiencing housing insecurity? Learn more about eligibility and how we can help.