2025 Kelowna Housing Market Update: Trends, Insights, and Opportunities for Sellers, Buyers, Developers, and Home Builders
The 2025 housing market forecast from BMO reveals a dynamic landscape for buyers, sellers, and developers in Kelowna. As the region continues to experience significant growth and development, understanding the latest trends in the Kelowna real estate market is crucial for making informed decisions. Whether you are a first-time homebuyer, seasoned seller, or a developer focused on infill multifamily builds, here’s a comprehensive look at what's happening in Kelowna’s housing market in 2025.
2025 National Housing Market OverviewBMO’s 2025 housing market update presents a mixed outlook for Canada. While home sales are expected to increase by 12% nationwide, with a 4% rise in prices, the performance of different property types will vary. Single-family homes are in high demand, particularly from young families, while condos may face price challenges, with many investors likely to sell as these properties hit the resale market.
- Single-Detached Homes: Expected to remain in demand, especially as supply continues to lag behind demand.
- Condos and Apartments: With many new condos owned by investors, prices may face pressure, creating opportunities for buyers and investors to secure deals.
Kelowna Housing Market Insights: 2024 Overview
Kelowna’s real estate market showed impressive activity in 2024, with substantial construction across various property types:
- 3,790 new housing starts in Kelowna, including:
- 390 single-family homes
- 5,768 apartments
- 460 townhomes
Additionally, Kelowna saw the addition of 528 new purpose-built rentals in December, contributing to BC’s total of 18,430 new rental units.
However, the increased focus on apartment and rental development reflects ongoing demand driven by immigration. As immigration levels are expected to decline slightly in the coming years, the demand for condos and rentals may slow. For developers and home builders, this may present a shift in focus, with a growing opportunity for infill multifamily builds as demand for single-family homes continues to rise.
Impact of Interest Rates on Kelowna’s Market
Affordability remains a significant concern for both buyers and sellers in 2025. The proportion of household income spent on mortgage payments is still high compared to pre-2020 levels, which may temper housing price appreciation in the coming years.
However, there is some optimism on the horizon:
- Variable interest rates are expected to drop by 0.75% before September 2025.
- Fixed mortgage rates are predicted to decrease by 0.50 basis points, though market volatility linked to US-Canada relations and upcoming elections could influence fixed rate trends.
For buyers and sellers in Kelowna, this could mean more favorable financing conditions in the latter part of 2025, with potential opportunities to lock in lower mortgage rates.
What This Means for Kelowna Sellers and Buyers
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For Sellers: Demand for single-family homes in Kelowna remains strong, with a limited supply expected to drive prices up. If you’re selling a single-family home, now may be an ideal time to take advantage of increasing buyer demand.
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For Buyers: While affordability is still a concern, the expected decrease in interest rates later in the year may help ease financial pressures. Buyers should focus on single-family homes, where demand is likely to continue increasing, or explore condo deals, as investors may be looking to sell.
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For Developers and Home Builders: Kelowna’s growing population and evolving housing needs make it an ideal location for new infill multifamily builds. With the increasing focus on rental properties and the continuing demand for family homes, there are significant opportunities in the development of both low- and high-density housing projects.
Opportunities for Kelowna Developers and Home Builders in 2025
The shift in housing demand — from single-family homes to multifamily builds in certain areas — presents opportunities for developers and home builders in Kelowna, particularly in the infill multifamily market. With an increasing focus on purpose-built rental units, townhomes, and apartments, those involved in the Kelowna real estate market can tap into the growing demand for more diverse housing options.
Infill projects, which repurpose underutilized land within existing urban areas, are likely to be a key focus for developers in 2025. As Kelowna’s urbanization increases, multifamily infill projects that cater to the housing needs of young professionals, small families, and retirees could offer attractive investment opportunities.
Key Takeaways for 2025 Kelowna Real Estate Market
- Sellers: The demand for single-family homes is expected to continue rising, making it a good time to list. However, keep an eye on interest rate changes as they could influence buyer behavior later in the year.
- Buyers: Look for deals on condos, as market conditions may provide opportunities to secure a better price. Single-family homes will remain competitive, but interest rate drops could help make purchases more affordable.
- Developers and Home Builders: The demand for infill multifamily builds is likely to rise. Investors focusing on rental units, townhomes, and multifamily projects will find ample opportunities in Kelowna’s evolving housing landscape.
Conclusion
In 2025, Kelowna’s housing market presents a range of opportunities for buyers, sellers, developers, and home builders. Whether you’re looking to sell your home at a competitive price, find a great deal on a condo, or explore new development opportunities, the forecast for Kelowna’s real estate market indicates growth, though with some volatility. Keep a close eye on interest rates and market shifts to make informed decisions throughout the year.
For more updates or personalized advice about buying, selling, or developing in Kelowna, feel free to reach out. Stay ahead of the market trends and take advantage of the opportunities 2025 offers!
Mark and Maddie Coons
Selling Kelowna Real Estate Group
Tel: 778-744-0872
