September 16, 2016 8:19 pm
Updated: September 17, 2016 1:04 pm

Kelowna is now one of the top 10 most expensive rental markets in Canada

padmapers.com
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Finding a palce to rent in Kelowna can be difficult.

In 2012 the vacancy rate in the Okanagan city was four per cent.  Now  it’s 0.7  per cent – the lowest in Canada.

That lack of supply is driving up prices, and now an online report shows that Kelowna is one of the top 10 most expensive cities to rent in.

PadMapper compared the median rental price for one bedroom units in cities across the country, and ranked Kelowna eighth.

The city offers 10-year tax breaks for developers to build rental units and development cost charges are waived to build microsuites.

Last year, 329 rental units were built. So far this year, over a thousand rental units are complete or underway and another thousand are expected in 2017.

“It’s going to have an effect in a year or two, we truly do hope that it balances out the housing market and also makes it more affordable to live in Kelowna,” said Kelowna City Councillor Ryan Donn.

Market analysts agree that the tight market should loosen up as more units are built, but it could take a couple of years.

“So they are going to be coming more and more available,” said Kevin Kirk with Remax Management Solutions. “It’s just right now we’re dealing with the current market.”

© 2016 Global News, a division of Corus Entertainment Inc.

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