It is becoming increasingly difficult to buy a home in Kelowna and the surrounding communities. This is evident from statistics included in a recent report on housing valuation.
The average house price for a single-family home in the district rose 70 percent between 2012 and 2018, according to a report by the Central Okanagan County (RDCO).
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Kelowna remains the most inaccessible place for first-time buyers. A single family home costs an average of $ 779,000.
Lake Country is the second most expensive place to buy a single family home. The average home price in the community is nearly $ 738,000. Central Okanagan West ranks third, with the average single-family home there costing nearly $ 733,000.
“Average income couples are the only household group in the region who can afford an average condo,” the report said.
“Buying a townhouse or a single family home is out of reach for households earning the median RDCO income.”
According to the report, the median income for a couple in a year is $ 90,899, or $ 7,574 per month. For a single person, the median annual income is $ 35,883, or $ 2,990 per month.
Given this income data, a couple earning $ 90,899 can buy a home for $ 395,943, including the required 10 percent down payment.
“Given the average county apartment sales price of $ 347,131, most couple households earning the median income and above should be able to find an apartment they can afford to buy within 30 percent of their gross income, but not a town house or a single family home. “
The report recognizes that the labor industry is already negatively impacted by high property prices in the region.
“Stakeholders say there are no longer any ‘starter home’ options for households just entering the market.”
“This has become a challenge to attract employees and younger people to the region.”
The British Columbia government took a number of measures in 2018 to cool the regional real estate markets. These included an increase in foreign buyers’ tax and a new speculation tax in Kelowna and other cities.
@connortrembley
connor.trembley@kelownacapnews.com
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