A recent housing needs assessment presented to Kelowna, B.C., city council indicates that for the next eight years, the city will need to build up to 2,700 housing units to keep up with projected population growth.
It also highlights not only how many units are needed, but the types of homes needed to support the community.
“It was great to receive that report. It was something that we were looking for, to give us an idea of not just the number of units needed in the community, but the types of units,” explained Kelowna Mayor Tom Dyas.
“From a planning standpoint and looking for individuals to come forward with the projects, it gave them also some good insight.”
While the report suggests that Kelowna will need to add between 19,000 and 26,000 new housing units by 2031, it also revealed that the city’s current housing inventory is not meeting the demand of the population.
Right now, the city’s housing deficit is between 3,750 and 5,000 homes.
“It certainly makes the task ahead of us harder,” said City of Kelowna infill housing planning manager, James Moore.
“Am I concerned that we have a housing deficit? Absolutely. We shouldn’t have one, but now we know what it is and how big this thing is that we need to tackle.”
Rent has shot up 32 per cent in the Central Okanagan since 2018, while housing prices have risen 55 per cent since then, further proof that the city needs to put some of its focus on more affordable housing options.
“The housing needs assessment is really telling us what the problems are and what the challenges we face are, that will lead us into our housing strategy,” said Moore.
“The housing strategy will be the how — how do we actually get the housing we need, meet the targets we have, but I think the important thing is that this housing needs assessment gives us the targets and the aim we need to take.”
On Wednesday morning, a ribbon-cutting ceremony was held at the site of a new, 95-unit apartment complex in the neighbourhood of Rutland. The building offers studio suites, 1- and 2-bedroom units, and 10,000 square feet of retail space on the ground floor. It was also built in an area that had much of the needed infrastructure already in place.
“I think this project is a good example of the efficiency of bringing in under-utilized land based already in existence and being able to produce quality residential (housing) on an affordable basis,” said Argus Properties president and CEO, Ted Callahan.
“The roads are here, the sewer lines are here, the water lines, the power lines — it’s walking distance to parks, so when you can be more efficient with your land base, it means you can lower your housing costs.”
Callahan adds that all levels of government need to look at ways to speed up the process when it comes to building affordable housing.
“There’s a strong need for both the federal and provincial government to get involved and be proactive as opposed to reactive, in developing affordable housing,” said Callahan.
“From there, I would certainly encourage our municipal leaders to be very proactive in ensuring we’re getting red tape out of the way. It’s the number one impediment to the development of affordable housing in British Columbia.”
The report also shows that Kelowna’s population is growing faster than previously expected, further increasing the pressure on the current housing market.