What Kelowna's cooling market means for renters
Rental prices in Kelowna are declining as a surge in new apartment supply begins to ease pressure on one of Canada’s tightest housing markets.
According to the latest Canadian Rent Report released by Zumper, the average rent for a one-bedroom apartment in Kelowna has dropped to $1,850 in March 2025. This marks a steady decrease from $1,910 in January and a peak of $2,010 in August 2024.
Landlords are increasingly offering incentives, including one or two months of free rent, to attract tenants – a shift from the once landlord-favoured market. One development, Mission Flats, is among those promoting two months of free rent for renters who sign a 14-month lease.
The trend represents a dramatic change from recent years. In 2023, Kelowna’s rental vacancy rate stood at just 1.3%, according to the Canada Mortgage and Housing Corporation (CMHC). With limited availability, prices climbed sharply, making affordability a growing concern.
To combat the shortage, the City of Kelowna and CMHC introduced measures such as tax incentives, density bonuses, faster approvals, and relaxed parking requirements to accelerate apartment construction. These efforts have resulted in thousands of new units, with an additional 2,000 apartments expected to be completed within the next year, a report from KelownaNow noted.
As a result, the vacancy rate is now estimated to be between 5% and 6%. Kelowna currently has approximately 24,000 rental apartments, comprising one-third of all residential units in the city. The remainder includes 50,000 single-family homes, townhouses, and condominiums — many of which are financially out of reach for renters.
Despite the downward trend, Kelowna remains the seventh most expensive rental market in Canada. The cities with higher one-bedroom rents include Vancouver ($2,500), Burnaby and Toronto (both at $2,300), Victoria ($2,070), Halifax ($2,010), and Ottawa ($1,980). Kelowna is tied with Barrie at $1,850.
Meanwhile, two-bedroom apartment rents in Kelowna saw a slight month-over-month increase to $2,250 in March, up from $2,230 in February but below the September 2023 high of $2,700.
The declining rents, combined with lease incentives, are encouraging some residents to move into their first apartments or upgrade from shared accommodations, gradually opening up lower-cost units to new renters.
Zumper’s monthly report tracks one-bedroom rents across 23 Canadian cities. The most affordable markets include Regina ($1,240), Edmonton and Saskatoon (both at $1,300), Quebec City ($1,310), and Winnipeg and Windsor (each at $1,400).
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