The City of West Kelowna needs to build hundreds of new housing units a year over the next two decades to keep pace with predicted demand.
A housing needs assessment presented to council Tuesday (July 12) stated an average of 299 dwellings per year, of various types, will need to be constructed up to 2041 for a total of 5,380 units.
Christopher Kuno, with Colliers Strategy and Consulting, told council that new housing starts between 2011 and 2021 in West Kelowna averaged 154 units a year, meaning a deficit of 2,500 units by 2041 if the trend continues.
“If this happens this is going to put upward pressure on rentals rates and housing values and force households to live in unsuitable housing con or relocate due to lack of housing,” added Kuno.
West Kelowna has an estimated population of 38,311 residents according to 2021 statistics from the province. Kuno said his research indicates the population will be more than 49,000 people by 2041.
“Without a proper housing strategy, households will be forced to move or forced into inadequate housing conditions.”
Coun. Rick De Jong questioned using a 10-year average to predict housing needs as West Kelowna is a young city.
“Perhaps the last three to four years would be a better average,” he said. “Simply being that the first five to seven years council spent a lot of time putting together policies and were not really focussed on working with the development community.”
De Jong added that from his perspective housing affordability in the community is gone.
“As sad as it is to say that I think we need to focus on housing attainability.”
The Colliers report found rental vacancy rates in West Kelowna averaged 3.86 per cent between 2011 and 2020.
“This is important as low vacancy rates are one of the main factors driving rental rate increases, as it is an indicator of substantial demand for rental housing and a lack of supply of available or suitable units,” added Kuno.
He also noted that based on average rents in 2022, households earning more than $60,000 can spend less 30 per cent of their income on monthly rent, but those earning less than $40,000 annually spend more than 50 per cent.
Kuno said households that continue to have the most difficulty finding suitable, sustainable, and affordable housing are single parents, low-income households, young adults, seniors, and those experiencing homelessness or mental health and substance use challenges.
The report also found that the greatest number of new housing units the city is projected to require to meet demand is multi-family type homes, mainly low-rises and duplexes.
Coun. Jason Friesen suggested council needs to consult more with senior government and non-profit groups regarding affordable housing in the city.
“There is going to be huge demand,” he said. “At the same time, we need to look at how best to incentivize that and encourage people to come. We can’t just sit back and say please come and do nothing about it.”
Council also felt some of the data in the report may be out of date and requires updating.
“Right now I’m getting the feeling that this is just not the level we need to address the issues going forward,” said Milsom. “We appreciate what you’ve done, but we need more. We’ll address that with you later.”
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