Vacancy rate soars to 3.8%

The rental vacancy rate across Metro Kelowna has taken a huge leap.

The yearly rate, tabulated by the Canadian Mortgage and Housing Corporation shows the vacancy rate in the region has spiked to 3.8 per cent.

It’s the third highest rate of any metropolitan area in the country behind only Calgary (4.8%) and St. John, NB (4.0%).

The vacancy rate was pegged at 1.3 per cent just 12 months ago.

The rate takes in the entire Metro Kelowna region from Peachland to Lake Country.

Individually, the rental vacancy rate for both Kelowna and West Kelowna sits at 3.7 per cent. Data was not available for Lake Country or Peachland.

In terms of specific unit sizes, the vacancy rate in the metro region for bachelor units soared from 0.2 per cent to 4.8, one bedroom from 1.0 to 3.4, two bedrooms from 1.7 to 3.6 while the rate for three bedroom units is pegged at 5.4 per cent.

This is just the second time in two decades the rental vacancy rate within the City of Kelowna has surpassed three per cent.

Earlier in the fall, city planning director Ryan Smith predicted the rate could take a significant jump with the flood of rentals coming onto the market.

The rise in the vacancy rate above three per cent could also be good news for the city if it wishes to opt out of provincial legislation around short-term rentals.

Communities are able to opt out of principle residency requirements if they meet certain criteria, chief among those, a vacancy rate at or above three per cent for two consecutive years.

While the vacancy rate has taken a large jump, rents across the board have also increased according to the survey.

The average rent went up by $108 a month to $1,731. Rents for a bachelor unit average $1,370, a one bedroom $1,509 and two bedrooms $1,935.

The annual report does not include secondary suites, carriage houses or duplexes.