A Generational Shift

A Generational Shift

Jan 19, 2018 | Finance, Local, Real Estate

With living costs in Vancouver continuing to soar, many young professionals who hail from the Lower Mainland are finding that Kelowna is the answer to their struggles. With the benefits of a 7.2% labour force growth, close amenities for a good work-life balance, and the added benefit of being only a short drive to the coast, the Okanagan is growing in popularity among the younger crowd. What’s the effect? A healthy housing market.

Kelowna is growing an average of 300 people per month, and Generation X (particularly those between the ages of 30 and 34) seem to be the ones driving the market inland. Between 2011 and 2016, this demographic grew by 21.8% in Kelowna, due to attractive homes being more affordable for a young professionals or families. On average, home prices in the area fall around $700,000 – a more reasonable option for a family from the Lower Mainland, where the average is closer to $1 million.

One big change this migration is bringing to Kelowna is in the type of housing available. For a city used to big suburban developments, or retirement-style golf course abodes, the younger market is inspiring a different type of home. One Water Street is a good example of this; larger tower-style buildings are being introduced to placate demand with affordable units right in the heart of downtown. The city even granted developers permission to build three storeys above the city’s 26-storey limit, a request that they have denied to other buildings in the past.

One thing is for sure – Kelowna is on the cusp of a big housing change and a younger generation is now seeing the value of saving their dollars and investing in our city and beautiful valley.

Now is also great time to get your home on the market – inventory is low and with numerous investors coming to the Okanagan it’s a perfect time to sell. If you’re looking to make a move, contact me today to find out how I can help.

Additional Reading

Bank of Canada Raises Interest Rate to 1.75%

    The Bank of Canada can finally see “home” on the horizon with the latest increase of interest rates now levelling out. Governor Stephen Poloz and his deputies on the Governing Council raised the benchmark interest rate a quarter point to 1.75 percent, as expected....

Protecting the Rent?

    The B.C. government has announced changes to the province's annual allowable rent increase formula that are expected to save many renters hundreds of dollars next year. Premier John Horgan and Housing Minister Selina Robinson announced Wednesday that they're...

Location, Location, Location?

    A controversy was recently brought to light in the Okanagan Real Estate market - a Global News investigation found some discrepancies on the Multiple Listing Service (MLS) between listing locations and actual locations of properties. In a market like Kelowna where...