Are We Building a World Where Owning a Single-Family Home Isn’t Possible Anymore?
Why This Question Matters for Living in Kelowna
If you ask most people whether housing should be more affordable, almost everyone will say yes.
But affordability usually comes down to one big thing:
Price.
And when we talk about Living in Kelowna, the price of a single-family home has become one of the biggest questions facing buyers, sellers, families, builders, and even future generations.
This is not just a Kelowna problem.
But in Kelowna real estate, we can really see the issue clearly.
The dream of owning a detached home is not dead. But it is getting harder. And if we do not understand why, we may keep blaming the wrong things.
The Big Question: Are Single-Family Homes Becoming Out of Reach?
For years, people have asked:
“Why are homes so expensive?”
But maybe the better question is:
“Are we still building homes that normal families can afford?”
That question matters if you are:
- Moving to Kelowna
- Trying to buy your first home
- Upsizing from a condo or townhouse
- Selling a detached home
- Thinking about building new
- Planning for your kids’ future
When people talk about Living in Kelowna, they often talk about the lake, wineries, trails, skiing, schools, and the Okanagan lifestyle.
But behind all of that is a harder truth:
The cost of owning land and building a single-family home has changed dramatically.
What 27 Years of Central Okanagan Data Shows
I looked at single-family home sales across the Central Okanagan going back to 1999.
That includes areas like:
- Kelowna
- West Kelowna
- Lake Country
- Peachland
The data covers about 66,000 single-family home sales.
And the numbers tell a pretty clear story.
New Homes Used to Cost More — But Not This Much More
Back in 1999:
- A new single-family home cost about $212,240
- A resale single-family home cost about $165,950
- The gap was roughly $46,000
- New homes cost about 28% more than resale homes
Fast forward to 2026:
- A new single-family home is closer to $1,499,990
- A resale single-family home is closer to $933,663
- The gap is now about $566,327
- New homes cost about 61% more than resale homes
That is a massive change.
The Gap Between New and Resale Homes Has Exploded
The new-versus-used price gap has more than doubled as a percentage.
In actual dollars, the gap is about 12 times bigger than it was in 1999.
That matters because new construction often sets the “replacement cost” for the market.
If it costs nearly $1.5 million to build or buy a new detached home, then a resale home at $900,000 starts to look very different.
That does not mean every resale home is a deal.
But it does change the way we look at value in Kelowna homes for sale.
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The Price Drop Buyers Were Waiting For May Have Already Happened
A lot of buyers are still waiting for prices to fall.
And to be fair, prices have come down.
Resale single-family home prices in the Central Okanagan peaked around $1,030,000 in 2022.
Today, they are closer to $933,663.
That is roughly a 10% drop.
So the better question may not be:
“Are prices down?”
They are.
The better question is:
“Do prices fall much further from here, or does the market move sideways for a while?”
Why Replacement Cost Matters in Kelowna Real Estate
Replacement cost is simple.
It asks:
What would it cost to build this same home today?
When new single-family homes are very expensive to build, resale homes become harder to replace.
That can help create a price floor over time.
It does not mean prices rise right away.
It does not mean the market suddenly becomes hot.
But it does mean buyers should be careful about assuming a huge crash is guaranteed.
What Still Impacts Prices?
Even with high replacement costs, the market still depends on:
- Inventory
- Interest rates
- Buyer confidence
- Wages
- Lending rules
- Local job growth
- Migration into the Okanagan
The market is not simple right now.
It is not booming.
It is not crashing.
It is adjusting.
Land Is One of the Biggest Reasons Homes Cost More
The house itself is only part of the story.
The land underneath it has become much more expensive.
In 1999, a typical lot was around $70,000.
By 2023, that same kind of lot was closer to $532,500.
That is a huge increase.
More Money for Less Land
Here is the part that really matters:
Lots have also gotten smaller.
So buyers are often paying more money for less land.
That changes the entire math of Living in Kelowna.
It also explains why many builders are not focused on entry-level detached homes anymore.
The land cost is too high before they even start building.
A $1.5 Million New Home Is Not Just Land, Lumber, and Labour
When people see the price of a new home, they often assume most of the cost is the house itself.
But that is not always true.
On a $1.5 million new home in Kelowna, a large part of the price can come from costs that are not directly land, lumber, or labour.
That may include:
- GST
- Development Cost Charges
- Energy Step Code requirements
- Architect fees
- Engineering fees
- Financing costs during construction
- Property Transfer Tax on the lot
- City permits
- Accounting and professional fees
Each cost may have a reason.
Some help pay for infrastructure.
Some improve energy performance.
Some protect the buyer.
But when you add them all together, they can become a major part of the final price.
The Hard Part for Buyers
The problem is not that every fee is bad.
The problem is that the buyer pays for the total stack.
At the end of the day, the family buying the home does not just pay for the kitchen, bedrooms, roof, and land.
They pay for everything baked into the final price.
That is one reason Living in Kelowna has become harder for families who want a detached home.
📥 Download Here, our free Kelowna Home Buyer’s Guide today.
Single-Family Construction Is Shrinking in Kelowna
This is the part that concerns me the most.
In March 2026, only 10 single-family homes were started in the entire Kelowna area.
From January to March, there were only 39 single-family starts.
That is not a lot for a region with more than 250,000 people and continued growth.
Most New Housing Is Not Single-Family Housing
Today, most new construction is not detached housing.
A large share of new housing is apartments, condos, and multi-family development.
That is not automatically bad.
We need more housing types.
Condos matter.
Townhomes matter.
Rentals matter.
But if almost all new supply is multi-family, then the supply of new single-family homes becomes very limited.
And when supply is limited, prices usually stay under pressure over time.
The Starter New Home Has Almost Disappeared
This is one of the biggest changes in Kelowna real estate.
The new starter single-family home is almost gone.
Builders are not ignoring first-time buyers because they do not care.
They are responding to math.
If land is expensive, fees are high, construction costs are high, and financing costs are high, then the final price has to be high enough for the project to make sense.
Builders are businesses.
They have to make money to keep building.
Why Builders Are Not the Villain
It is easy to blame builders.
But builders do not control every cost.
They deal with:
- Land prices
- Labour shortages
- Material costs
- Permit timelines
- Lending costs
- Taxes
- City fees
- Provincial rules
- Buyer affordability limits
When the numbers stop working, fewer single-family homes get built.
And when fewer homes get built, resale homes become more important.
That impacts buyers looking at Kelowna homes for sale today.
Older Homes Are Carrying More of the Market
Another important point is the age of our housing stock.
Many single-family homes in Kelowna were built decades ago.
A lot of the homes people still buy and sell today were built between the 1960s and 1980s.
That means buyers may increasingly be choosing between:
- An older resale home
- A renovated older home
- A townhouse
- A condo
- A very expensive new detached home
This matters for anyone moving to Kelowna.
The dream may still be a detached home with a yard.
But the path to getting there may look different than it did 20 or 30 years ago.
What This Means for Buyers in Kelowna
If you are a buyer, this market can feel frustrating.
You may be wondering:
“Should I wait?”
Maybe.
But waiting only works if prices fall more than your cost of waiting.
That includes:
- Rent payments
- Higher or lower interest rates
- Lost time in the market
- Fewer suitable homes
- More competition for the best listings
For buyers, the key is not to panic-buy.
But it is also not always smart to wait forever for a crash that may not come.
The better strategy is to understand value.
Look for homes that have:
- Good location
- Strong layout
- Usable land
- Renovation potential
- Suite potential
- Fair pricing
- Long-term resale appeal
That is especially important when looking at Kelowna homes for sale, West Kelowna, and Lake Country.
What This Means for Sellers in Kelowna
If you own a good resale single-family home, this matters for you too.
You still cannot price like it is 2022.
Buyers are more careful now.
They have more information.
They are watching rates, monthly payments, and inventory.
But you also may not need to panic if your home is in a strong location and priced properly.
The Seller Opportunity
A good resale single-family home may stand out because new detached homes are so expensive.
That does not mean every home sells fast.
It means the right home, at the right price, with the right marketing, can still attract serious buyers.
This is where strategy matters.
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What This Means for Families Living in Kelowna
This issue is bigger than one buyer or one seller.
It affects the future of Living in Kelowna.
If detached homes become too expensive to build, then fewer families will be able to own one.
That could change the way our communities feel.
It could affect:
- Where families live
- How much space kids grow up with
- Whether grandparents can stay close
- Whether young families can build equity
- Whether local workers can afford to stay
The Okanagan lifestyle is one of the best in Canada.
But lifestyle only works if people can afford to live here.
Are We Building the Right Kind of Housing?
We need more housing.
But we also need the right mix of housing.
That means asking better questions:
- Are we building homes families can actually afford?
- Are we creating enough ground-oriented housing?
- Are fees making homes more expensive than they need to be?
- Are we making it easier or harder to build?
- Are we protecting affordability, or just talking about it?
This is where the conversation needs to move beyond politics.
We need to talk about the math.
Because if the numbers do not work, the homes do not get built.
And if the homes do not get built, Living in Kelowna becomes harder for the next generation.
My Honest Take on Kelowna Housing Affordability
I love this region.
I love the lake, the mountains, the neighbourhoods, and the lifestyle.
I want my kids, your kids, and future generations to have a real chance to own a home here one day.
But that does not happen by accident.
It happens when we build enough housing, in the right places, at prices people can actually afford.
Right now, single-family homes are getting harder to build.
Costs keep rising.
Land is more expensive.
Fees keep stacking up.
New supply is limited.
And the starter new home has basically disappeared.
That should concern all of us.
Not because everyone needs to own a detached home.
But because people should still have a path to one.
Thinking About Building vs. Buying Resale?
If you are thinking about building a new home in Kelowna, West Kelowna, Lake Country, or anywhere in the Okanagan, get advice before you go too far.
Building can still make sense for some people.
But you need to know the full cost before you start.
That includes land, construction, GST, permits, financing, design fees, servicing, and the unexpected costs that can show up along the way.
Sometimes building new is the right move.
Sometimes buying resale is the smarter choice.
The key is knowing the difference before you are too deep into the process.
FAQ: Single-Family Homes and Living in Kelowna
Is Living in Kelowna becoming too expensive for families?
Living in Kelowna has become more expensive, especially for families wanting a detached home. Prices, land costs, construction costs, and fees have all increased. But there are still opportunities if buyers understand the market and compare resale homes, townhomes, and different neighbourhoods carefully.
Are single-family homes still a good investment in Kelowna?
Single-family homes can still be a strong long-term asset, especially in good locations with limited future supply. But not every home is automatically a good buy. Price, condition, layout, land value, and location all matter.
Should I buy a resale home or build new in Kelowna?
It depends on your goals. Building gives you more control, but it usually costs more and comes with more risk. Buying resale may offer better value, especially when new construction costs are much higher.
Is moving to Kelowna still worth it?
For many people, yes. Moving to Kelowna still offers access to the lake, outdoor lifestyle, wineries, skiing, strong neighbourhoods, and a high quality of life. But buyers need a clear plan because affordability is a real issue.
Final Thoughts: The Future of Living in Kelowna Depends on the Choices We Make Now
The question is not just whether single-family homes are expensive.
They are.
The bigger question is whether we are building a future where normal families still have a path to owning one.
That path is getting harder.
But it is not gone.
If you are buying, selling, building, or simply trying to understand the future of Living in Kelowna, we would be happy to help you look at the numbers and make a clear plan.
For honest advice about Kelowna real estate, Kelowna homes for sale, West Kelowna, Lake Country, or the broader Okanagan lifestyle, reach out anytime.
Contact Mark & Maddie for Kelowna real estate help.
Mark Coons Personal Real Estate Corporation, BBA + CE
Team Lead, Selling Okanagan Group
eXp Realty Kelowna
Phone: 778-946-6454
Email: [email protected]
