FILE PHOTO

FILE PHOTO

Kelowna has lowest rental vacancy rate in Canada

The only people benefitting from Kelowna’s tight rental market are landlords.

As costs surge and availability plummets, it’s increasingly clear that Kelowna renters are in a pinch.

Kelowna has a 0.2 per cent rental vacancy rate, which is the lowest in the country, according a report from the Canadian Mortgage and Housing Corporation released Tuesday. This time last year CMHC reported the vacancy rate to be at 0.6 per cent.

Diminishing supply has led to a rise in cost and CMHC reported that Kelowna also had the biggest rent-rate hike in the country, with the costs increasing by 8.6 per cent. According to the site PadMapper, the cost of one and two bedroom units is sitting at medians of $1,130 and $1,590, respectively.

While it’s getting more difficult to be a renter in Kelowna, there is relief ahead.

Coun. Luke Stack said earlier this year that the city had implemented some policies that were aimed at increasing the city’s rental stock.

RELATED: RENTAL RATE HITTING SENIORS HARD

“One of the things we have in the works at city council is tax incentives for purpose built rental housing,” Stack said this summer.

“That has been successful and we have approximately 1,500 rentals under construction. I’m optimistic that when those come along it may give us some relief.”

While conditions are tight in Kelowna, it’s not alone.

The average vacancy rate for purpose-built rental apartment units across Canadian centres with a population of 10,000 or more decreased from 3.7 per cent in October 2016 to 3.0 per cent in October 2017, according to Canada Mortgage and Housing Corporation’s 2017 Rental Market Survey.

RELATED: RENTAL RATES INCREASE

This reverses the increases observed in 2015 and 2016 and leaves the vacancy rate at its 10-year average. This national decline reflects a recovery in rental demand in Canada’s oil-producing provinces.

The Rental Market Survey provides data and analysis for both the primary and purpose-built rental market as well as the secondary rental market covering condominium apartments. Tailor-made reports are available for Canada, the provinces, Yellowknife and major centres.

“Nationally, increased demand for purpose-built rental apartment units outpaced growth in supply, leading to a decline in the vacancy rate and a reversal of the trend we’ve seen over the last two years,” said Gustavo Durango, senior market analyst at CMHC.

“Demand for purpose-built rental apartments can be attributed to historically high levels of positive net international migration, improving employment conditions for younger households and the ongoing aging of the population.”

Abbotsford Mission has the same purpose-built rental vacancy rate as Kelowna, Victoria is next with 0.6 per cent and Vancouver has 0.9 per cent.

The next largest rent increases were in Victoria, which saw increases of 8.1 per cent and Vancouver, where costs rose by 6.2 per cent.

The CMHC numbers are for what it calls the primary rental market. That includes apartment complexes with three or more units that were built specifically to be used as rentals. It doesn’t include other types of rentals such as basement suites or homes that are being rented out.

To report a typo, email: edit@kelownacapnews.com.



kmichaels@kelownacapnews.com

Like us on Facebook and follow us on Twitter.

Just Posted

Paul Bernardo is shown in this courtroom sketch during Ontario court proceedings via video link in Napanee, Ont., on October 5, 2018. Teen killer and serial rapist Paul Bernardo is set for a parole hearing today. The designated dangerous offender, has been eligible for full parole for more than three years. Bernardo’s horrific crimes in the 1980s and early 1990s include for kidnapping, torturing and killing Kristen French and Leslie Mahaffy near St. Catharines, Ont. THE CANADIAN PRESS/Greg Banning
Killer rapist denied parole, Paul Bernardo, had plans to relocate to Kelowna

Designated dangerous offender has been eligible for full parole for more than three years

Kelowna Mayor Colin Basran, middle right, participates in a ribbon-cutting ceremony in honour of the launch of Kelowna’s plasma donor centre at Orchard Plaza Mall on June 22. From left to right: Canadian Blood Services’ business development manager Janna Pantella, Canadian Blood Services’ operational excellence manager Tyler Burke, Kelowna Mayor Colin Basran and Canadian Blood Services’ centre manager Janine Johns. (Aaron Hemens/Capital News)
B.C.’s first dedicated plasma donor centre opens in Kelowna

The Kelowna location is the third dedicated plasma donor to open in Canada

Yoga with Goats instructor Samantha Richardson gets some attention from one of the goats while stretching on her mat June 15 at O’Keefe Ranch. (Jennifer Smith - Morning Star)
Yoga gone to the goats at North Okanagan ranch

Get your downward dog on with some four-legged friends at O’Keefe

With high temperatures forecasted for the week and into the next, Interior Health is offering some tips on how to keep yourself safe from heat-related illness. (Pixabay)
Interior Health offers safety tips as temperatures soar

‘Too much heat can be harmful to your health’

Central Okanagan Public Schools (File photo)
COVID-19 exposure identified at West Kelowna school

The site of the exposure has been identified as Shannon Lake Elementary School

A person stands in a tower on the perimeter of the Number 3 Detention Center in Dabancheng in western China’s Xinjiang Uyghur Autonomous Region on April 23, 2021. Human rights groups and Western nations led by the United States, Britain and Germany accused China of massive crimes against the Uyghur minority and demanded unimpeded access for U.N. experts at a virtual meeting on Wednesday, May 12, 2021 denounced by China as “politically motivated” and based on “lies.” THE CANADIAN PRESS/AP-Mark Schiefelbein
VIDEO: Trudeau demands truth from China about Uyghurs

PM says Canada has admitted broken Indigenous relationship, unlike China on Uyghurs

Susan Kootnekoff is the founder of Inspire Law, an Okanagan based-law practice, and provides Kelowna Capital News with weekly stories from the world of local, national and international law. (Contributed)
Kootnekoff: Access to justice and residential schools in Canada

Susan Kootnekoff is the founder of Inspire Law, her diverse legal career spans over 20 years

Children walk with their parents to Sherwood Park Elementary in North Vancouver for the first day back to school on Sept. 10, 2020. THE CANADIAN PRESS/Jonathan Hayward
Study reassures parents, teachers that COVID-19 infrequently shared at school

Federally funded study in Vancouver finds risk in the classroom and in the community identical

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Conservative MP Kevin Waugh rises during Question Period in the House of Commons Tuesday April 13, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Single-game sports betting about to become legal in Canada

Senate passes bill to take sports gambling away from overseas agencies

Point Roberts is part of the mainland United States but not physically connected to it, to reach the community by land one must pass through Canada. THE CANADIAN PRESS/Darryl Dyck
Closed Canadian border leaves Point Roberts’ only grocery store on verge of closure

‘We’re Americans but we’re not attached to America. It’s easy to forget we’re here,’ says owner Ali Hayton

Mayla Janzen and Ashley Hoppichler, with her daughters Lily and Sophia, are bringing a Friday evening market to Polson Park, starting July 2. (Jennifer Smith - Morning Star)
Entrepreneurs craft up Vernon night market

Friday evening Polson Park event to take place throughout the summer

Splatsin Chief Wayne Christian and Tina William lead the Every Child Matters March in Enderby Monday, June 21. (Lyndsey Leon photo)
Hundreds march with Splatsin in Enderby for #215

300 orange-shirt wearing people of all backgrounds turned out in support

Wade Cudmore, seen here with his mother Kathy Richardson, had his first court appearance in relation to first degree murder charges in the deaths of Erick and Carlo Fryer Tuesday, June 22, 2021. (Kathy Richardson/Facebook)
Man charged in Naramata double homicide appears in Penticton court

Wade Cudmore appeared for the first time in relation to first degree murder charges

Most Read