I decided to look at a snapshot of current building underway, what type of housing is being built and how it is being absorbed to check whether there are any signs of sectors becoming over-built in the Kelowna Real Estate Market as we saw in the past.
Seasonally Adjusted Housing Starts December 2018
After a rapid rise in housing starts appear to be easing off for now.
More Townhomes appear to be being built compared to last year.
As you can see there are a significant number of Condos being built, as there is much building work in Water Street, Ellis, Bernard, and St Paul area, for example.
This downtown area will be one to watch. Potentially, if demand doesn't increase over the next 12 months, we may well see some evidence of over-supply later in the year.
Kelowna Rental Market
As you can see, Vacancy Rates are still quite low.
I was interested to see the Average Rents that CMHC are quoting.
In speaking to many Clients, who are Landlords, the rents they are receiving are well above these rates.
This is particularly true of any units in proximity to the University and Okanagan College.
Acknowledgment - All graphs and illustrations were taken from the December 2018 CMHC Kelowna Highlights Report.