Is Kelowna Building the Right Homes for Its Growing Population?
As Kelowna continues to be one of Canada’s fastest-growing cities, it faces critical questions about its real estate development. Major urban areas, such as the Capri Center Kelowna, are undergoing significant transformation as part of the Kelowna Local Area Plan. But as new developments rise in the Capri Kelowna neighbourhood, the question remains: Are we building the right kinds of homes to accommodate Kelowna's changing population? Stay informed with our weekly email. Sign up here.
Demographic Breakdown in Capri Kelowna: Who’s Moving In?
According to recent demographic data for Capri Kelowna:
- 20 to 34 years: 30%
- 35 to 49 years: 17%
- 50 to 64 years: 16.7%
- Over 65 years: 26%
- Under 19 years: 10.5%
This breakdown shows a large portion of the population falling in the 20 to 34 age group, representing young professionals, students, and early-career individuals who are driving much of the demand for rental accommodations. Additionally, the over 65 population (26%) presents its own unique housing needs, such as senior-friendly, accessible housing options.
With 50% of the area’s population being single and 75% renters, the demand for studio and 1-bedroom units appears to be high. However, while developers are largely building micro-suites and compact living spaces, is this the best approach for the long-term needs of this growing neighbourhood?
What Types of Homes Are Being Built in the Capri Neighbourhood?
In the Capri Center Kelowna area, recent and upcoming developments have overwhelmingly focused on micro-units and studio apartments. While these smaller units cater to young professionals and students, there’s a noticeable lack of family-friendly and senior-accessible units in the pipeline.
Here is a breakdown of units in several key buildings under development or proposed in Capri Kelowna:
- Studio/Micro Units: 40.73%
- 1-Bedroom Units: 22.41%
- 1-Bedroom + Den Units: 13.79%
- 2-Bedroom Units: 14.55%
- 2-Bedroom + Den Units: 4.63%
- 3-Bedroom Units: 1.40%
This heavy emphasis on smaller units is reflected in current projects like Five Crossings, where over 79.71% of the units are micro-suites or studios. Similarly, Revo Kelowna has more than 61% of its units as micro-suites. While these units work for singles and young couples, they fall short of accommodating families or seniors looking for more space and comfort. Curious about how the Capri neighbourhood is evolving? Get more detailed updates by signing up for our weekly email Sign up here.
Capri Kelowna Developments: Key Projects Underway
- Five Crossings Development:
- Studios: 79.71% (312 sq. ft.)
- 1-Bedroom: 18.36% (up to 855 sq. ft.)
- 2-Bedroom: 1.45% (up to 855 sq. ft.)
- Revo Kelowna:
- Micro Suites: 61.25% (314 sq. ft.)
- 1-Bedroom + Den: 2.08% (591 sq. ft.)
- 2-Bedroom: 12.92% (640-772 sq. ft.)
- AnaCapri:
- Micro Suites: 33.33% (312 sq. ft.)
- Studios: 36.67% (445-450 sq. ft.)
- One-bedroom + Den: 25.56% (515-630 sq. ft.)
These developments are heavily skewed towards smaller units, which serve the single, young professional population. However, with a significant over 65 population in the area and growing demand for family-sized homes, there’s concern about whether Capri Kelowna is truly future-proofing its housing stock.
Upcoming and Proposed Developments in Capri Kelowna
Looking forward, more projects are in the works for Capri Center Kelowna. A few notable proposed developments include:
- Capri Centre Tower One:
- 1-Bedroom Units: 35.32%
- 2-Bedroom Units: 23.42%
- Studio Units: 1.12% (278 sq. ft.)
- Pridham/Belaire Project:
- 1-Bedroom Units: 40%
- 2-Bedroom Units: 23%
- 3-Bedroom Units: 13% (840-960 sq. ft.)
These upcoming developments suggest a slight increase in larger units, but the majority still lean towards 1-bedroom or micro-units, with very limited family-friendly or senior-accessible housing.
Capri Kelowna: Is There a Shift in Demand?
While Capri Kelowna has been at the forefront of smaller-unit developments, there are signs that consumers may be looking for larger spaces. Developers have largely focused on micro-units to meet demand, but there is growing interest in larger units, such as 2-bedroom apartments and townhouses.
However, this shift comes with challenges. As the neighbourhood grows, parking and infrastructure concerns may arise due to the density created by micro-units. For future planning, Capri Center Kelowna developments need to balance the immediate demand for smaller units with the long-term need for more spacious homes.
Vacancy Rates and Rental Prices in Capri Kelowna
Historically, Kelowna’s vacancy rate has been around 1-2%, but with a surge in purpose-built rentals coming to market, vacancy rates are projected to rise to around 3-5% as the market stabilizes. Despite this, rental prices are expected to remain high due to continued demand:
- Studio/Micro Units: $1,300 to $1,500 per month
- 1-Bedroom Units: $1,600 to $1,900 per month
- 2-Bedroom Units: $2,100 to $2,500 per month
- 3-Bedroom Units: $2,700 to $3,200 per month
With increasing supply, the demand in Capri Kelowna is likely to remain high, particularly for mid-sized units as renters seek more space at reasonable prices.
Conclusion: Is Kelowna’s Development in Capri Meeting Long-Term Needs?
The Capri Kelowna neighbourhood, with its ongoing and proposed developments, reflects Kelowna’s broader growth trends. However, the current emphasis on smaller units may not adequately meet the long-term needs of the population. As Kelowna continues to grow, especially in areas like Capri Center, the city needs to consider a more diverse housing mix that includes larger units for families and accessible units for seniors.
To truly future-proof the Capri Kelowna area, developments should incorporate more family-friendly and senior-oriented housing options, ensuring that Kelowna remains a vibrant, inclusive city for all its residents.
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Have a great week!
Mark Coons
Personal Real Estate Corporation
Selling Kelowna Real Estate Group
778-744-0872
