Low vacancy across the Thompson Okanagan has continued to exert upward pressure on rents which in turn has spurred strong interest in the region. This has generated higher sale prices, particularly with many buildings trading off-market during the last six months.
- Following five consecutive years of continuous decline, the Kelowna rental market vacancy rate increased to 1.9% in October 2018 from 0.2% one year earlier. Factors such as an increase in new supply and a slowdown in interprovincial migration have contributed to this increase.
- Despite no change in the Vernon rental market vacancy rate, the average rent in 2018 climbed to $862, a 3.1% increase over 2017. This still remains relatively affordable compared to major urban centres in British Columbia, and remains below the provincial average of $1,248.
- Like most cities throughout British Columbia there has been a strong focus on developing affordable housing in Kamloops. Currently, there are 246 units of affordable housing currently under construction or proposed for development.
- In terms of volume, the Penticton multifamily market continued to be the most active market in the Thompson Okanagan during the last six months, recording five transactions worth just over $19.4 million.