Sign in Subscribe
Housing

Kelowna City Council Faces Concerns Over Slowdown in Development and Housing Trends

Strategic Insights

— 2 min read

Kelowna's construction industry has shown a slight increase in activity in 2025, but overall development and housing trends are indicating a possible slowdown in the years ahead. According to a report to be presented to the city council on August 11, the total value of building permits issued in the first half of the year is $469 million, which is more than halfway to last year's total but still below the city's 10-year average of $900 million. The number of new housing units approved in 2024 is also significantly lower than previous years, with only 1,603 units approved, compared to 4,000 in 2023.

Key Takeaways:

  • The total value of building permits issued in the first half of 2025 is $469 million, which is more than halfway to last year's total of $646 million, but still below the city's 10-year average of $900 million.
  • The number of new housing units approved in 2024 is significantly lower than previous years, with only 1,603 units approved, compared to 4,000 in 2023.
  • The city is behind schedule in meeting its targets under the federal Housing Accelerator Fund (HAF), which awarded Kelowna up to $31.5 million to speed up housing approvals and construction. As of June 2024, the city has averaged 166 units per month instead of the 206 needed to meet the grant's condition of issuing permits for 7,430 new homes by late 2026.
  • The city has completed 76% of tasks tied to the HAF funding, including launching work on development incentives, planning for transit-supportive corridors, improving housing data, buying land for affordable housing, and investing in infrastructure.
  • The city is working to meet its targets under the B.C. Housing Supply Act, which sets housing targets for high-growth communities. The next required update to the province is due in January 2026.

Statistics:

  • Total value of building permits issued in the first half of 2025: $469 million
  • Number of new housing units approved in 2024: 1,603
  • Number of new housing units approved in 2023: 4,000
  • City's 10-year average of building permit values: $900 million per year
  • City's target under the HAF grant: issue permits for 7,430 new homes by late 2026
  • Average number of housing units approved per month under the HAF grant: 166 (instead of the required 206)
  • Total amount allocated to the HAF grant: up to $31.5 million
  • Amount spent from the HAF grant: $7.9 million
  • Number of tasks completed under the HAF funding: 76%

Sources:

  • Kelowna Capital News, 2025 (report to be presented to city council on August 11)

Read more