Kelowna Apartment Rentals slide
The cooling in Kelowna’s real estate market has extended to rental apartments.
In June, the median monthly rent for a one-bedroom apartment in the city was $1,650, a slide of $1,750 in May and a record high of $1,800 in April.
For twin beds, the median in June was $2,170, down from a record high of $2,310 in May.
“Kelowna ranked as the 7th most expensive rental market in the country last month,” said Crystal Chen, director of marketing at Zumper (formerly PadMapper), the online platform that lists apartments for rent and creates the monthly report on the national rents of Canada.
This means Kelowna trails Vancouver, Toronto, Burnaby, Victoria, Oshawa and Barrie and is tied for 7th place with Kitchener.
The median monthly rent for a one-bedroom apartment in Kelowna in June had fallen to $1,650, for a two-bed apartment to $2,170.” class=”img-responsive” src=”https:/ /www.kelownanow.com/files/files/images/Kelowna%20apt%20bld%20July.JPG” style=”margin: 5px;”/>
Falling rents are consistent with what is happening in the home buying market.
After peaking at $1,131,800 for a single-family home, $829,800 for a townhouse and $557.00 for a condominium, benchmark selling prices have eroded by about 5%.
This destabilized the market and prompted many potential buyers to take a wait-and-see approach to see if prices could drop further.
This sentiment has carried over to the rental market, with potential tenants sticking to their existing living arrangements rather than securing their first spot or moving to another location.
There is also the affordability factor.
Although house and rent prices have fallen slightly, Kelowna is still considered unaffordable after increases of 30% or more over the past two years.
This means that some people are still simply excluded from the market.
As mentioned earlier, rents continue to rise in other cities.
In Vancouver, the most expensive city, that means $2,300 for a single bed and $3,300 for a twin bed; $2,100 and $2,700 in Toronto; $2,060 and $2,750 in Burnaby; $1,880 and $2,350 in Victoria; $1,690 and $2,000 in Oshawa; $1,670 and $1,950 in Barrie; and $1,650 and $1,920.
As you can see, Zumper’s rankings are based on one bed rents.
Kelowna actually has the 5th most expensive rents in the country based on two bed costs.
The cities with the cheapest rent are St. John’s where a bed costs $870 and a two-bed $920; Edmonton at $960 and $1,250; Regina at $970 and $1,150 and Saskatoon at $990 and $1,130.
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