2025 Kelowna Townhome Market — The Simple Truth
More listings. Slower sales. Prices held better than expected.
Townhomes did not avoid the slowdown in 2025, but compared to condos, they were one of the most stable property types in the Kelowna real estate market .
Buyers slowed down. Sellers had to adjust. But values did not collapse.
Is the Kelowna Townhome Market a Buyer’s Market in 2025?
Yes — but not evenly everywhere.
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Inventory is higher than normal
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Homes are taking longer to sell
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Negotiation is back
Buyers finally have time to think, compare options, and negotiate — especially on newer townhomes.
Did Townhome Prices Drop in Kelowna?
No crash. Just a reset.
What the data shows clearly:
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Prices rose steadily from 2015–2020
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Peaked in 2021–early 2022
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Softened through 2023
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Stabilized in 2024–2025
Median prices remain well above pre-COVID levels. That’s a key long-term signal of value retention.
Why New Townhomes Are Struggling More Than Resales
This is where the story really changes.
In parts of Kelowna North and South, new townhomes built after 2022 are facing:
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High list prices
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Slower absorption
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Buyer resistance
At one point:
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26 active listings
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1 sale
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~26 months of inventory
This is not a demand problem.
It’s a pricing and cost-structure problem.
What Buyers Are Doing Instead
Buyers are choosing value over “new”:
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Older resale townhomes
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Different neighbourhoods
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Slightly longer commutes
When price feels right, homes still sell.
Where New Townhomes Are Selling Better in Kelowna
Sales activity has been stronger in:
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Glenmore
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Rutland North
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Lower Mission
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University District
This tells builders something important:
product mix + pricing matter more than central location alone.
What This Means for Buyers in 2026
Pros
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Strong negotiating power
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Incentives and price flexibility on new builds
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Real opportunities under $1M
Cons
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Fewer truly “affordable” townhomes coming
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High construction costs aren’t going away
What This Means for Sellers
Pricing matters more than ever.
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Overpricing gets punished
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Optimism doesn’t work in a buyer-leaning market
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Well-designed, well-located townhomes still sell — just not instantly
What This Means for Developers & Builders
This is the big picture most people miss:
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Kelowna is building far more apartments than townhomes
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Townhomes are the missing middle
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Only ~5% of current construction is townhome product
Short term: pressure on new pricing
Long term: constrained supply supports future values
Long-Term Outlook (5–10 Years)
Townhomes sit in the sweet spot:
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More stable than condos
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More affordable than detached homes
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Ideal for families, downsizers, and move-up buyers
Today’s oversupply in small pockets is likely temporary.
Final Thought
2025 wasn’t easy — but it was honest.
Townhomes proved they are:
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Resilient
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Necessary
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Still in demand when priced right
If you’re buying, selling, or planning an infill project in Kelowna, strategy matters more than headlines.
Talk It Through
Mark & Maddie
Selling Kelowna Real Estate Group | eXp Realty Kelowna
📞 778-744-0872
📩 [email protected]
