Kelowna Construction Boom or Burnout? What the Numbers Are Really Saying
Will Home Prices Actually Come Down?
If you're a buyer, seller, or builder in the Kelowna real estate market, you're probably asking:
Are prices finally coming down?
The truth? Not really. But it depends on how you read the data.
Rising Costs. Slower Approvals. Tougher Rules.
Despite promises of more affordable housing, many recent government policies are doing the opposite:
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BC Energy Step Code: Homes must be 40% more energy-efficient by 2027, and 80% by 2032 (vs. 2018)
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Development Cost Charges (DCCs) in Kelowna rose 2.5% in 2025
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FortisBC delays mean power connections now push into 2027–2028
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Build timelines: 10–16 months for single-family homes, 24+ months for apartments
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Holding costs are growing due to higher rates and construction delays
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Permits and red tape are slowing everything down
For Kelowna home builders and developers, speed used to be the advantage. Now, time is the risk.
Who Is This Market Really Serving?
The numbers are telling:
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Only 25% of new builds are for ownership
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Just 11% are single-family homes
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A full 75% of new construction in Kelowna is rental-focused
This shift makes it harder for average people to own homes—or even become small landlords. Instead, we’re seeing the rise of institutional multi-family rental projects.
Affordable housing? Maybe.
Ownership? Fading fast.
What Are the Numbers Really Saying?
Let’s compare April 2024 vs. April 2025:
New Single-Family Homes (CMHC Data)
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Dropped from $1,573,211 → $1,478,204
But…
Apartments
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Down just $3,000 year-to-date
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Only $19,000 drop when comparing April to April
Townhomes
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Increased by $34,000 → Now averaging $734,736
Single-Family Homes
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Increased by $35,000 → Now averaging $1,138,190
So despite some headlines, Kelowna home prices are holding steady—or climbing.
Housing Starts Are Slowing
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2025 YTD Housing Starts: 740
(down from 1,052 in 2024) -
2025 YTD Completions: 826
(up from 462 in 2024)
We’re completing more homes—for now. But if new starts keep slowing, 2026 could bring a supply crunch.
Will Prices Drop in the Long Run?
Not unless we fix some key problems:
✅ Reduce building costs
✅ Speed up permit approvals
✅ Offer true incentives for homeownership
✅ Balance policies at all government levels
If we can’t bring prices down in the short term, we won’t be able to sustain affordability long term. And that could drive people to other cities where supply better meets demand.
A Silver Lining: Opportunity Still Exists
This isn’t all doom and gloom.
At Selling Kelowna Real Estate Group, we focus on the big picture—not just seasonal trends or headlines.
Yes, the dynamics are shifting. But in every shift, there’s opportunity.
Let’s Talk Strategy
Whether you're:
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Buying your first or next home
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Selling and wondering when to list
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Investing in new builds
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Developing infill or multi-family homes
We’ll help you navigate the changes and spot the opportunities.
Mark and Maddie Coons
Selling Kelowna Real Estate Group
📞 778-744-0872
📧 [email protected]
