Image Credit: SUBMITTED/City of Kelowna
January 21, 2023 - 3:30 PM
The City of Kelowna needs to do even more about housing, according to a staff report that will be presented to council next week.
For a family with an annual household income of $105,300 – the average for Kelowna – they would be “hard pressed to afford” an average single detached home in 2022. At $6,000 per month, the mortgage would eat up 41% of their after-tax income.
Renting is also pricy – the vacancy rate is under 1% and an average one-bedroom is going for $1,817 per month.
“The low vacancy rates in the rental market and the corresponding high costs have cascading impacts through our housing system, leading ultimately to elevated levels of homelessness and shelter use.”
The Bank of Canada made a sharp increase to the borrowing rate, which “has had dramatic impacts on the housing,” however “it is too early to tell whether it will result in improved affordability.”
For the first time, there are housing ministers at both the provincial and federal level, and both levels of government are increasing their commitment to address the issue, the report says.
“Long-lasting, systemic change will require consistent and dedicated effort in all of these areas. This year will present Council a unique opportunity to take a fresh look at our approach to housing to set a renewed strategy for years to come and take bold action on an issue that is critical to our community wellbeing.”
The report gives the City credit for its previous efforts addressing the housing crisis – Kelowna was an early adopter of secondary suites and carriage homes, incentives were created to increase the number of rental suites, and staff created the “one of the most streamlined development processes in the province.”
However, “staff suggest that further action is still required.”
Image Credit: SUBMITTED/City of Kelowna
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