Kelowna’s Skyline Tells One Story. The Numbers Tell Another.
Drive around Kelowna and it is easy to think new construction is booming.
You see towers. Cranes. Glass balconies. New condo buildings changing the skyline. Downtown Kelowna, the Capri-Landmark area, Pandosy, and other parts of the city look very different than they did a few years ago.
From the outside, the conclusion seems simple:
New construction in Kelowna must be doing great.
But that is not the full story.
Many of the buildings you see finishing today were not created for today’s market. They were planned, financed, marketed, and sold years ago.
In many cases, those projects were built for the 2021 and 2022 real estate market.
That was a very different world.
Interest rates were lower. Buyers were more confident. Investors were more aggressive. Presale condos were easier to sell. Many people believed prices would keep moving in one direction.
Up.
Today, the market is different.
That does not mean new construction is bad.
It does not mean older condos are always better.
It means the Kelowna condo market has become much more specific.
The building matters.
The price matters.
The strata matters.
The buyer profile matters.
And most importantly, the numbers matter.
Quick Answer: Is Kelowna New Construction Struggling?
Not exactly.
Some new construction projects in Kelowna are facing pressure because they were priced during a hotter market. Some presale buyers paid peak prices and are now dealing with today’s values, today’s lending rules, and today’s buyer expectations.
But that does not mean every new building is struggling.
It also does not mean every older building is safe.
The real answer is this:
Kelowna condos are not moving as one market. Some buildings are up. Some are flat. Some are down.
That is why buyers, sellers, developers, and home builders need to look at the market building by building.
The Presale Condo Model Worked Until the Market Changed
For a long time, the presale model was simple.
A buyer could put down a deposit, wait for the building to complete, and hope the market did the work.
In a rising market, that worked very well.
The plan looked like this:
- Buy early in the project.
- Put down 5% to 20%.
- Wait for construction to finish.
- Complete the purchase with built-in equity.
- Sell, rent it out, or hold long-term.
That model worked in Vancouver.
It worked in Kelowna.
It worked anywhere prices kept rising.
But there was one major assumption behind the whole thing:
Prices had to keep going up.
When prices stopped climbing, the risk became obvious.
If a buyer agreed to pay a peak price in 2021 or 2022, but the unit is worth less at completion, the bank does not care what the original contract price was.
The bank lends based on today’s value.
That gap becomes the buyer’s problem.
This is one of the biggest challenges facing some presale buyers today.
And it is also why some newer Kelowna condo buildings are showing weaker resale numbers than people might expect.
That Does Not Mean the Building Is Bad
This is where people need to be careful.
A lower resale value does not always mean the building is poor quality.
A good building can still be a bad investment if the original price was too high.
A modern condo can still struggle if the buyer paid peak pricing.
A strong location can still underperform if the numbers no longer make sense.
That is the key difference.
The building may not be the problem. The price paid at the peak may be the problem.
This is especially important for buyers looking at Kelowna condos for sale today.
Do not assume new is automatically safer.
Do not assume old is automatically riskier.
And do not assume a lower price means a better deal.
The right question is not:
Is it new or old?
The better question is:
Does this building make sense at this price in today’s market?
Which Kelowna Condo Buildings Held Value Since the Peak?
I have been tracking Kelowna condo and apartment building performance from the 2021–2022 peak to today.
The results are not what most people would expect.
Here are a few examples based on price per square foot:
| Building | Year Built | Peak Price/Sq. Ft. | Current Price/Sq. Ft. | Change |
|---|---|---|---|---|
| 1915 Pacific Court | 1977 | $264 | $374 | +41% |
| 515 Houghton Road | 2006 | $309 | $399 | +29% |
| 780 Houghton Road | 1990 | $269 | $330 | +23% |
| 920 Glenwood Avenue | 1993 | $343 | $414 | +21% |
| 1471 St Paul Street | 2022 | $952 | $779 | -18% |
| 2085 Gordon Drive | 1984 | $283 | $228 | -19% |
This is where the market gets interesting.
A 1977 building is up 41%.
A 2006 building is up 29%.
A 1990 building is up 23%.
A 1993 building is up 21%.
At the same time, a newer 2022 building that traded around $952 per square foot at the peak is down 18%.
And an older 1984 building is down 19%.
So the lesson is not:
Old good. New bad.
That would be too simple.
The real lesson is:
Kelowna condos are performing building by building.
Some older buildings have done very well.
Some newer buildings are under pressure.
Some older buildings are also struggling.
This is why broad market averages can be misleading.
The Kelowna Condo Market Did Not Crash. It Got Smarter.
A lot of people want simple headlines.
They want to say:
“Kelowna condos are down.”
Or:
“New construction is struggling.”
Or:
“Older buildings are better value.”
But the truth is more detailed.
The Kelowna condo market did not crash.
It got smarter.
Buyers are asking better questions.
Sellers are having to price more carefully.
Lenders are looking harder at values.
Investors are no longer assuming appreciation will fix bad math.
Strata documents matter more.
Reserve funds matter more.
Monthly carrying costs matter more.
Rental rules matter more.
Insurance costs matter more.
Future resale value matters more.
This is a healthier market in many ways.
It is not as easy.
But it is more honest.
What This Means for Kelowna Condo Sellers
If you own a condo in Kelowna, your building may be performing better than the headlines suggest.
Or it may not be.
That is why pricing your condo based only on broad market averages can be risky.
Your value depends on your specific building.
Before listing, you should know:
- How your building has performed since the 2021–2022 peak
- What similar units have actually sold for
- How many active listings are competing with you
- Whether buyers are paying strong prices per square foot
- How long units are taking to sell
- Whether your strata fees are helping or hurting value
- Whether the depreciation report raises any concerns
- Whether your floor plan is in demand
- Whether your building has a strong resale history
This matters because buyers are more informed now.
They are reading strata documents.
They are checking contingency reserve funds.
They are reviewing depreciation reports.
They are comparing insurance costs.
They are asking about special levies.
They are looking at rental rules.
They are comparing your building against other buildings.
That means the lazy 2021 or 2022 comp is not enough anymore.
In today’s Kelowna real estate market, sellers need a pricing strategy based on current building-level data.
What This Means for Kelowna Condo Buyers
If you are buying a condo in Kelowna, this market can create real opportunity.
But you have to look deeper.
The lowest price is not always the best deal.
A cheaper condo in a weaker building can cost more over time.
A more expensive condo in a stronger building may actually be the safer purchase.
Before buying, ask:
- Has this building held value since the peak?
- Are owners reselling at a profit or a loss?
- Are units sitting on the market?
- Are strata fees reasonable?
- Is the reserve fund healthy?
- Are there major repairs coming?
- Is the building mostly owner-occupied or investor-owned?
- Does the floor plan have long-term resale appeal?
- Is the price supported by recent sales?
- Would this unit still be easy to sell in a slower market?
This is especially important for buyers comparing new construction, resale condos, and older apartment buildings in Kelowna.
A beautiful lobby does not guarantee strong resale value.
A newer building does not automatically mean lower risk.
An older building does not automatically mean future problems.
The right building at the right price is what matters.
What This Means for Developers and Home Builders in Kelowna
There is also a clear message here for developers, home builders, and landowners looking at Kelowna infill multifamily projects.
The market is not rejecting new housing.
It is rejecting bad math.
Kelowna still needs more homes.
There is still demand for well-located condos, townhomes, rentals, and infill multifamily housing.
But the product has to match the market.
Developers and builders need to ask better questions before bringing product forward:
- Who is the actual end buyer?
- Is this for downsizers, first-time buyers, investors, renters, or families?
- Does the price point match local incomes?
- Will the monthly payment make sense?
- Can the project compete with resale inventory?
- Does the floor plan solve a real problem?
- Is the location strong enough to support the price?
- Does the project still work with today’s construction costs and financing rates?
This is especially important as Kelowna continues to grow and add more infill housing.
More supply creates more choice.
And when buyers have more choice, weak product gets exposed faster.
That does not mean developers should stop building.
It means the best projects will be the ones that are priced properly, designed well, and built for the real buyer of today — not the investor market of 2021.
New Construction Can Still Be a Great Choice
This is not an anti-new-construction message.
New construction in Kelowna can still be a smart move.
Newer buildings may offer:
- Modern layouts
- Better energy efficiency
- Updated building systems
- Stronger amenities
- Better design
- Less short-term maintenance
- A more attractive lifestyle for some buyers
For the right buyer, that can be worth paying for.
For the right investor, a newer unit can still work if the rent, price, and holding costs make sense.
For the right downsizer, a new condo can offer a low-maintenance lifestyle in a great location.
But new construction is not automatically a win.
The numbers still have to work.
Older Buildings Can Still Be Strong
Some older Kelowna apartment buildings have performed very well since the peak.
Why?
In many cases, they started from a more reasonable price point.
A building trading at $264 per square foot has a very different risk profile than one trading at $952 per square foot.
Older buildings may also offer:
- Larger floor plans
- Better price per square foot
- More usable layouts
- Strong owner-occupier demand
- Lower entry prices
- Proven resale history
But older does not automatically mean better.
You still have to review the strata documents, maintenance history, depreciation report, reserve fund, insurance, bylaws, and upcoming repairs.
An older building with a strong strata can be a great option.
An older building with major deferred maintenance can be a problem.
Again, it comes back to the same point:
The building matters.
The Real Kelowna Condo Market Is Not One Market
The Kelowna real estate market is made up of many smaller markets.
Detached homes are different from townhomes.
Townhomes are different from condos.
New condos are different from older apartment buildings.
Downtown Kelowna is different from Glenmore, Rutland, Pandosy, Springfield/Spall, Capri-Landmark, and Lower Mission.
Even two condo buildings on the same street can perform very differently.
That is why buyers and sellers need more than average prices.
They need building-level data.
They need to know what is actually selling.
They need to know where demand is strong.
They need to know where values are slipping.
They need to know whether a building is holding up or falling behind.
The best buildings usually have a few things in common:
The numbers make sense.
The strata is healthy.
The price is real.
The location has demand.
The building has a clear buyer.
That is the Kelowna condo market we are in now.
Not a crash.
Not a boom.
A smarter market.
And in a smarter market, the right building still wins.
Thinking About Buying or Selling a Kelowna Condo?
If you own a condo in Kelowna, your building may be stronger than you think.
Or it may need a more careful pricing strategy.
If you are looking at buying a Kelowna condo, the list price is only one piece of the story.
You need to know how the building has performed, how it compares to nearby options, and whether the current value is supported by real sales.
I have been tracking how major Kelowna condo buildings have performed from the 2021–2022 peak to today.
Building by building.
Winners and losers.
Strong performers and weak spots.
I do not post the full list publicly.
But if you want to know how your building is performing, or you are thinking about buying in a specific Kelowna condo building, reach out.
I can show you where the numbers actually sit.
Ready to Make a Smarter Kelowna Real Estate Move?
Whether you are buying, selling, investing, building, or looking at Kelowna infill multifamily opportunities, the right data matters.
Book a call here:
https://calendly.com/sellingkelownarealestate
Or reach out directly:
Mark Coons PREC, BBA, CE*
Team Lead, Selling Okanagan Group
eXp Realty Kelowna
Relocated to Kelowna in 2018
Kelowna Realty insights for buyers, sellers, builders, and developers
📞 Office: 778-946-6454
📞 Cell: 250-801-0361
📩 [email protected]
