Introduction
BC Rent Bank, a project of Vancity Community Foundation funded by the Government of British Columbia (BC), partners with local community partners to provide no-interest loans for rent arrears, move-in costs and essential utilities (such as gas and hydro), helping individuals maintain housing stability and preventing eviction and homelessness. Hence, rent banks lessen the challenges associated with homelessness, including employment instability, child welfare issues, and increased reliance on social services. By keeping people in their homes, eviction prevention also reduces the demand for emergency services and enhances the effectiveness of programs such as substance abuse treatment, employment support, and mental health services.
This blog will explore how BC Rent Bank helps prevent homelessness through financial assistance and how rent bank programs contribute to community financial savings by reducing the need for emergency interventions and long-term services, as shown in BC Rent Bank’s recent report, Why Eviction Prevention Matters.
Background
Housing affordability has become a significant challenge in BC, particularly in cities like Vancouver, where rental prices have dramatically increased in recent years (which is largely attributable to rising inflation rates). In 2023, the average rent for a one-bedroom apartment in Vancouver was around $2,530 per month, while wages have not kept pace with these increases. The result is that many renters pay over half of their income on housing, leaving them vulnerable to financial hardship and eviction. In particular, BC has the highest eviction rate in Canada, with 10.5% of renter households forced to move between April 2016 and early 2021, mainly due to no-fault evictions like landlords selling the property. This is more than double the national average of 5.9%.
To help mitigate these issues, the rent bank model has been introduced, offering short-term financial assistance to tenants at risk of eviction due to temporary hardship. This initiative provides loans or grants to help renters cover overdue rent or utility payments, preventing homelessness and providing a buffer for tenants facing immediate financial distress.
Main Findings of the Why Eviction Prevention Matters Report
BC Rent Bank’s recently released report, Why Eviction Prevention Matters, highlights significant cost savings for the social safety net, alongside broader positive impacts of the rent bank model for individuals and communities in BC. Their 2021 Housing Stability Survey, which is sent to individuals who have accessed rent bank services, found that 94% of respondents maintained or improved their housing situation, with 61% likely to have faced homelessness without their assistance. These findings underscore the effectiveness of BC Rent Bank in preventing eviction and homelessness while delivering crucial support for housing stability across the province.
The following key findings illustrate the broader benefits of eviction prevention and BC Rent Bank’s impact on tenants and the social safety net:
- Cost Savings for Tenants and Governments: By preventing eviction and homelessness, BC Rent Bank helped reduce costs for both tenants and governments. These savings include rent arrears, moving and storage costs, emergency shelter, healthcare, child and youth care, and housing support services. In total, these efforts resulted in $27.5 million in savings.
- Homelessness Prevention: In 2023/24, BC Rent Bank is estimated to have prevented over 600 people from becoming homeless due to eviction and helped more than 1,000 low-income households avoid an increased risk of homelessness after eviction had they moved to more expensive housing. This also eased pressure on the Government of BC’s Residential Tenancy Branch by reducing their wait times and improving service efficiency.
- Health Benefits: Keeping tenants in their homes promotes faster healing and reduces health complications, mainly by lowering stress, limiting possible exposure to infectious diseases, and improving access to support networks, hygiene, rest, and nutrition. This stability is especially beneficial for children, reducing the risk of negative health and developmental outcomes, and for women, lowering the likelihood of adverse birth outcomes like prematurity.
- Family and Housing Stability: Housing stability supports family stability by allowing families to spend more time together, access resources, stay connected to their community and culture, and maintain support networks. BC Rent Bank helped 611 families and 1,169 children in 2023/24, preventing the disruptive effects of instability on family development. This includes avoiding higher rent costs from moving and reducing the need for children and youth care placements.
- Education: Preventing eviction helps improve student outcomes and equity, as housing instability is linked to higher high school dropout rates, lower grade retention, weaker vocabulary skills, and reduced adult educational attainment. Stable housing provides a foundation for educational success.
- Economic Development: BC Rent Bank reduces economic hardship and unemployment by offering immediate financial support to renters facing crises like job loss, helping to minimize the personal and social impacts of eviction. It also fosters economic development by stabilizing housing, maintaining local spending, and preserving jobs, particularly in small businesses. Additionally, it helps lower inflation in shelter costs by preventing market-driven rent hikes that would otherwise contribute to rising housing expenses.
Conclusion
Overall, BC Rent Bank has proven it demonstrates its desired effect: preventing eviction and homelessness while delivering significant benefits to both individuals and the broader community. By providing timely financial assistance, BC Rent Bank helps tenants maintain housing stability, resulting in cost savings for both tenants and governments that totalled $27.5 million in 2023/24. The program has also prevented over 600 people from becoming homeless in 2023/24, easing pressure on public services and reducing the risk of health complications, family instability, and educational setbacks. Furthermore, BC Rent Bank supports local economic development by maintaining employment, fostering community connections and reducing inflationary pressures on shelter costs. BC Rent Bank not only keeps people housed, it also strengthens the social and economic fabric of BC.
If you are interested in learning more about eviction prevention, check out our collection on shelter diversion and eviction prevention for related research.