Home construction/Vernon Matters Staff

By Vernon Matters Staff

Significant growth

Kelowna doubles provincial housing target in first year of tracking

Aug 8, 2025 | 9:33 AM

The City of Kelowna has outpaced provincial expectations in its first year under a mandated housing target, delivering more than double the number of new homes required in Year 1 — and even surpassing the Year 2 benchmark.

A report heading to Kelowna city council Monday shows that from July 1, 2024, to June 30, 2025, the city added 3,467 net new housing units. That figure exceeds the province’s first-year target of 1,363 homes and the cumulative two-year target of 2,856.

“This represents a strong start,” city staff note in the report, which will be submitted to the B.C. minister of housing and municipal affairs as part of the city’s five-year reporting obligation.

The provincial government gave itself the authority in May 2023 to set housing targets in high-growth communities. Kelowna received its five-year target in June 2024, with a goal of delivering 8,774 net new completed units by 2029.

City staff define “net new units” as the number of occupancy-ready completions minus any units lost through demolition or decommissioning.

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In the first year, Kelowna issued occupancy permits for 3,620 housing units, while 153 units were removed, leaving the net gain at 3,467.

About half of the new units are purpose-built rentals, with the rest being owned housing. One- and two-bedroom units made up the majority of the completions. Of the rental stock, 170 units are considered below-market, though none were supportive housing or co-op units.

Still, staff are cautioning that future years may not see the same level of output. The number of building and development permits issued during the reporting period was lower than in previous years — a trend that could lead to fewer completions in the years ahead.

“The recent slowdown in permit activity could result in a dip in completed housing units for future reporting periods,” the report states.

The city has committed to continued tracking and monitoring to stay on course for the full five-year goal.

Kelowna council is expected to receive the report for information at its meeting on Monday and vote to submit it to the province as required.