Kelowna’s Market vs. the Numbers – What’s Really Happening?
The Central Okanagan Economic Development (COED) group recently released its 2024 Economic Indicators, providing insight into Kelowna's evolving real estate landscape. While the market continues to change, Kelowna remains resilient, showing signs of strength despite economic challenges.
Top Five Takeaways from the Report:
1. Population Growth Continues
Kelowna's population grew by 4.3%, confirming that the Okanagan remains a highly desirable place to live. While interprovincial migration trends show residents leaving BC, Kelowna still requires more housing to support its expanding population.
2. Employment Remains Steady
Kelowna's unemployment rate sits at 4.7%, slightly up from 3.1% last year but still well below Canada's national average of 6.7%. While job postings have declined by 15.9%, employment demand remains strong in sectors like retail, healthcare, and trades.
3. Kelowna International Airport Hits Record Numbers
Despite challenges like short-term rental restrictions and the impact of 2023 wildfires, Kelowna International Airport (YLW) recorded a 5.4% increase in passenger traffic, reaching 2.13 million travelers. This growth signals a healthy tourism industry and economic resilience.
4. Home Prices & Market Growth
Housing prices remain a key discussion point. Kelowna has experienced rapid price growth, outpacing many major Canadian cities. Since 2019, the median price of a newly constructed home in Kelowna has risen from $950,000 to $1,580,000 in 2024. Here’s how it compares to other cities:
- Kelowna (2024): $1,580,000
- Toronto: $1,407,500
- Calgary: $730,000
- Vancouver: $2,500,000
In comparison to 2019:
5. However, discrepancies arise when comparing these figures to Canadian Real Estate Association (CREA) data from January 2025:
- Calgary: $573,100
- Greater Vancouver: $1,173,000
- Toronto: $1,070,100
- Interior BC: $653,500
This raises the question: Are we looking at the full picture when assessing Kelowna’s position in the broader market?
The Cost of Building in Kelowna
A critical factor affecting Kelowna’s market is higher build costs. The COED report indicates that new home prices have increased by $630,000 in just six years, with Kelowna’s build costs exceeding those in Vancouver. This trend has major implications for buyers, builders, and developers working on infill multifamily builds and other new housing projects.
What This Means for Buyers, Sellers, and Developers
- Historically, Kelowna attracted buyers from Toronto and Vancouver due to its price gap. However, with the gap shrinking, out-of-town buyer activity may decline as the cost advantage disappears.
- Despite this, Kelowna remains a strong market with continued demand, particularly for those drawn to the Okanagan lifestyle.
- Developers must consider the rising build costs when planning projects, particularly for infill multifamily developments in Kelowna.
- Buyers and sellers need to approach real estate decisions with the bigger picture in mind.
Need Guidance on Your Next Move?
Whether you’re buying, selling, or investing in Kelowna real estate, understanding these trends is crucial. Let’s connect to discuss how the market conditions impact your plans.
Mark and Maddie Coons
Selling Kelowna Real Estate Group
Tel: 778-744-0872
