House prices, rent beyond reach of many residents in Central Okanagan: report
Single-income people have the least amount of choice in the Central Okanagan’s rental market, having to spend up to 50% of their income on rent in order to live in an average one-bedroom apartment.
The Regional District of Central Okanagan recently presented a report to Kelowna council during its last regular meeting, Jan. 25 outlining housing needs for the communities from 2019. The district is the third-largest urban centre in B.C. with a population of 194,882. It is expected to grow by 60,000 people by 2036.
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Roughly 65% of all new housing units built in the regional district between 2016-2036 are expected to be built in Kelowna.
“At 30% of their incomes, single people earning the median income in the (Central Okanagan) could afford $807 towards rent, or $1,345 towards rent if they spent 50% of their gross income on housing,” according to the report. The average one-bedroom in Peachland, Kelowna and West Kelowna costs $1,014 and $896 in Lake Country.
Single people have to spent more than 30% of their income on rent in all Central Okanagan communities and for all housing types expect for bachelor apartments in West Kelowna.
In the regional district, affordable housing means the cost of housing does not exceed 30% of a person’s gross income.
The average single-parent renter also has to spend more than the affordable 30% threshold to house their children in two and three-bedroom apartments, according to the report.
“While private rooms in shared households are an unfavourable option for many households, they are an alternative form of accommodation that can temporarily meet the needs of some residents,” according to the report.
For homeownership, median-income earners are also unable to find affordable housing unless they buy an apartment.
Couple households in the Central Okanagan can afford an average-priced apartment, besides Peachland, but cannot afford a townhouse or single-family dwelling without spending more than 30% of their income on their mortgage, according to the report.
Lone parent and single-person households are also not able to buy homes based on average home prices, according to the report.
“Thirty percent of respondents in the report indicated their housing was not affordable, while 62% indicated they were ‘very concerned’ with the cost of homeownership, and 56% were very concerned with the cost of renting. When asked to rate which groups have difficulties finding housing, respondents thought low-income households had a ‘very difficult’ time finding affordable housing in the region,” according to the report.
The increase "in housing cost has impacted many other facets of the Central Okanagan economy, such as employment, the provision of child care, and disposable income for other economic spending. Both renters and homebuyers are restricted due to the high costs, leaving them unable to move in to the housing market, or living in housing that is inappropriate for their needs.”
Kelowna had the highest average sales price for single-detached homes, and Peachland had the highest sale prices for townhouses and apartments.
The district outlines a possible solution for those unable to enter the housing market by adopting a single-car lifestyle to divert transposition costs to a mortgage payment instead. Kelowna households could save up to $7,056 a year by adopting this method, according to the report.
The full housing needs assessment is available online.
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