A pair of Vancouver businesses say steep rental prices have wiped out their pool of potential employees.

They say fewer people are applying for advertised positions, while others leave the area altogether — all citing the high cost of housing.

Patrick Mercer has worked in the service industry for nearly two decades. He is co-owner of the Brix & Mortar restaurant in Yaletown.

In the last six months, Mercer has experienced the worst labour shortage he's ever seen.

"There are just no apartments to be had," he said. "It's been extremely difficult."

James Laing manages a liquor store in Yaletown and is looking for an affordable apartment in downtown Vancouver. (CBC)

Last week, Mercer said he placed an ad for restaurant staff. In the past, he would have received up to 200 applications. This time he received just six.

"I'm more likely to find a unicorn than a good sous-chef," Mercer said.

Mercer said he would like the government to make it easier to hire foreign workers. He would also like to see longer public transit hours so he can draw employees from the suburbs, where rents are cheaper.

Mercer said his own employees have housing problems.

Bartender, Stephen Lee, has been sleeping on a friend's couch for four months.

When Patrick Mercer placed a job ad at his Yaletown eatery, only six people applied. In previous years, he received up to 200 applications.

Lee said he left an apartment thinking he would have no trouble finding another. But the search has been fruitless so far.

One apartment he looked at, a 500-square-foot suite, was more than $1,100.

"It's been very discouraging," Lee said. "Nobody wants to live in a dank, dark basement.

James Laing, who manages a liquor store in Yaletown, said he too is looking for an affordable apartment downtown close to work, but hasn't had any luck.

"It's frustrating," Laing said. "I can't live where I grew up. Downtown is not really an option for me."

"I didn't realize how bad it was until I started looking."

With files from Tanya Fletcher