Are New Kelowna Townhomes Still Worth Paying More For?
Quick Answer: New Kelowna townhomes still command a premium, but it's shrinking. Townhomes built 2022 or newer sold around $536/sqft at the 2022 peak and roughly $451/sqft in 2026 — about a 16% drop. Buyers still want new; they've stopped overpaying for it.
The New-Construction Premium Is Shrinking
Newer Kelowna townhomes still pull buyers in — modern layouts, cleaner design, energy efficiency, attached garages, more storage, less maintenance. That hasn't changed. What's changed is the price buyers will pay for it.
At the 2022 peak, townhomes built 2022 or newer sold around $536 per square foot. So far in 2026, that number sits closer to $451 per square foot — a drop of roughly 16%. Buyers still want newer homes. They've just stopped chasing them at any price.
Why This Matters
Newer townhomes were a big driver of the peak run-up. With high demand and low rates, buyers happily paid a premium for new or nearly-new product — and that worked beautifully while prices climbed.
Then the market softened, buyers turned cautious, and the same premium that rewarded 2021–2022 sellers became a trap for buyers who needed to resell quickly. That's a big part of why some peak buyers ended up selling for less than they paid.
New Isn't Bad — the Reason to Buy It Has Shifted
None of this makes new construction a bad buy. It just changes why you'd buy it. At the peak, buyers were betting on fast appreciation. Today, the smarter case for new is lower carrying costs. Newer townhomes typically come with:
- Lower strata fees
- Newer roofs, windows, and mechanical systems
- Better energy efficiency
- Fewer major repairs early on
- Remaining 2-5-10 home warranty coverage
That's real, durable value — it just may not show up as fast resale profit in the first few years.
The Strata-Fee Advantage
Newer complexes generally carry lower monthly strata costs than older ones. Grouped by construction age:
| Built | Approx. monthly strata | Approx. per sqft |
|---|---|---|
| Pre-1990 | ~$362 | ~$0.28 |
| 2010–2016 | ~$327 | ~$0.18 |
| 2017 or newer | ~$284 | ~$0.16–0.17 |
A buyer might pay more upfront for a newer unit but save every month through lower fees and fewer repairs. Over a typical hold, that gap adds up.
But Low Strata Fees Aren't Automatically Good
Here's where buyers get burned. A low fee is only good if the building is properly funded. New stratas sometimes launch with fees set too low — attractive on paper, but if the budget is thin, those fees climb later, often with special levies attached.
Before you trust a low monthly number, review:
- The strata budget and depreciation report
- Contingency reserve fund (CRF) balance
- Recent meeting minutes
- Insurance costs
- Any planned repairs or history of special levies
Rule of thumb: A $284 strata fee on an underfunded building is more expensive than a $362 fee on a fully funded one. Look at the reserve, not just the monthly.
Builders Are Getting Squeezed Too
This isn't only a buyer story. If buyers are capping new townhomes around $450–$475/sqft while land, labour, materials, financing, and city fees keep rising, new projects get harder to pencil out. Eventually the math stops working.
Kelowna's housing-start data already shows it: starts hit a high in 2024, fell about 31% in 2025, and are running roughly 43% below the 2024 peak so far in 2026. That's not buyers rejecting new construction — it's buyers rejecting peak pricing, and builders responding.
For broader context, CMHC's housing market data tracks starts and completions across BC markets including the Central Okanagan.
What Buyers Should Actually Ask
Don't stop at "Is it new?" Ask the questions that protect you:
- What's the price per square foot versus recent comparable sales?
- How long have similar units taken to sell?
- Is the strata fee realistic — and is the reserve fund healthy?
- How much warranty coverage is left?
- Are there older units nearby offering better value?
- Is the developer pricing on today's market, or yesterday's?
The right newer townhome can absolutely be a smart buy. The price just has to make sense.
🏠 Want to compare a specific new build against resale options? Get a free home valuation backed by 27 years of local data and I'll run the $/sqft side by side. Free. No spam. Just the numbers.
👉 See the latest homes for sale in Kelowna here
The Bottom Line
New construction was never the problem — peak pricing was. Newer Kelowna townhomes still offer real value, especially for buyers who want lower maintenance and lower monthly costs. Just don't pay yesterday's premium in today's market. The best purchase isn't always the newest home — it's the one where price, timeline, carrying costs, and resale risk all line up.
Frequently Asked Questions
Do new Kelowna townhomes still sell for more than older ones? Yes, but the gap is narrowing. Townhomes built 2022 or newer sold around $536/sqft at the 2022 peak and roughly $451/sqft in 2026 — about a 16% drop. Buyers still pay a premium for new, just a smaller one.
Are lower strata fees on new townhomes a good sign? Only if the building is properly funded. Some new stratas set fees too low at launch, then raise them — sometimes with special levies. Check the reserve fund and depreciation report, not just the monthly fee.
Should I buy new or resale in Kelowna right now? It depends on the numbers. New offers lower carrying costs and warranty coverage; resale can offer better value per square foot. Compare $/sqft, strata health, and recent same-complex sales before deciding.
Why are fewer townhomes being built in Kelowna? Rising land, labour, material, financing, and city costs are colliding with buyers who won't pay peak prices. Kelowna housing starts are running about 43% below the 2024 peak in 2026 as a result.
About the Author
Mark Coons PREC* is a REALTOR® with eXp Realty and founder of the Selling Okanagan Group. Mark works with builders, developers, and buyers across every new-build community in the Central Okanagan and connects clients with vetted local builders. Based in Kelowna, Mark serves buyers, sellers, and investors across the Central Okanagan including Kelowna, West Kelowna, Lake Country, and Peachland.
Thinking About a Newer Townhome? Let's Compare It First.
Before you pay a premium for new, let me run it against your resale options — price per square foot, strata fees, recent same-complex sales, warranty, and resale risk. You'll know whether the premium is worth it before you write an offer.
📞 Call or text me at 778-946-6454 📧 [email protected] 🌐 sellingokanagangroup.com 📅 Book a call: https://calendly.com/sellingkelownarealestate 📱 Search Kelowna homes instantly with our MLS® app: https://goagent.ca/33DC752D
Mark Coons PREC*, BBA, CE Team Lead, Selling Okanagan Group | eXp Realty Kelowna
Footnotes
- Price-per-square-foot figures based on internal Kelowna townhome sales analysis.
- Strata-fee examples based on grouped sales data by construction age.
- Buyers should confirm strata details through Form B, budgets, meeting minutes, insurance documents, and depreciation reports.
- Housing-start figures should be verified against City of Kelowna, CMHC, or local building-permit data before publication.
