An increase in interest rates can have an impact on the rental market in Vancouver, and it can affect both landlords and renters.
- For landlords: An increase in interest rates can make borrowing more expensive, which can make it more difficult for landlords to obtain mortgages and finance property purchases. This can lead to less investment in rental properties, which can in turn lead to a decrease in the supply of rental properties, leading to higher rents.
- For renters: Higher interest rates can lead to higher rents, as landlords may need to raise rents to cover their increased borrowing costs. Additionally, renters who are looking to purchase a home may face higher mortgage payments, making it more difficult for them to afford to purchase a property, which can increase the demand for rental properties and lead to higher rents.
- The overall impact on the rental market will depend on the size of the interest rate increase, the state of the economy, and other factors such as population growth, job market, and supply and demand.
It’s worth noting that Vancouver real estate has been in high demand for a long time, and it’s considered one of the most expensive in Canada. However, this does not mean that the rental prices will always go up with interest rate increase, it can fluctuate depending on the overall market conditions, and it’s always good to keep an eye on the market trends to have a better understanding.