Apartment rents make the spring jump in Kelowna

Apartment rents in Kelowna popped up in April as spring gave renters impetus to find a new place or their first place.

The median monthly rent for a typical one-bedroom apartment in the city increased $20 to $1,910 in April, from $1,890 in March, according to Zumper, the online platform that lists apartments for rent and compiles the monthly Canadian Rent Report.

While $1,910 is expensive and unaffordable for many, it is not a record.

The peak was $1,980 in June 2023.

The new, higher one-bedroom rent makes Kelowna the 7th most expensive city in Canada to rent an apartment.

Pricier are: Vancouver at $2,660, Toronto with $2,500, Burnaby at $2,490, Victoria with $2,100 and Halifax and Ottawa at $1,970.

"Rents overall are still expected to rise, especially as we head into summer and fall," said Crystal Chen of Zumper.

"With the Bank of Canada expected to announce (interest) rate cuts in July, this should help reduce the financial strain on property owners and therefore relieve the pressure to hike rents (too much). There's also new endeavors to create more rental supply."

In fact, a surge of rental apartment buildings in Kelowna lately means more inventory and more competition for landlords to lure tenants, so rents have actually come down from record highs last year.

When it comes to two-bedroom apartment rents in Kelowna, the median monthly for a typical two-bed came in at $2,400 in April, up $100 from $2,300 in March.

That's a 4.30% increase in just one month, the kind of jump that usually takes a year or so.

Regardless, it's still lower than the pinnacle of $2,700 in September 2023.

Again, this shows Kelowna rents, just like house prices, are unaffordable for many, especially first time buyers or renters.

To afford an apartment, many young people have to share with roommates or get help from mom and dad.

Even people with good jobs who want to move to a bigger or better apartment are often stuck spending more than the 30% of take-home pay that's recommended to be spent on accommodation.

For instance, someone bringing in $3,000 a month after taxes and deductions should be spending about $900 a month on housing, which also includes rent, utilities and home insurance.

$900 is a long way from the $1,910 a month rent for a typical one-bedroom apartment.

Thus, it tends to only be couples who are both earning or singletons taking on roommates who can afford apartments.

Or, there may be singles who are paying 50%, 60% or 70% of their take-home pay for housing.

$2,400 a month also makes Kelowna the 7th priciest city in the country to rent a two-bedroom apartment.

It's behind Vancouver at $3,750, Toronto with $3,200, Burnaby at $3,150, Victoria with $2,670, Halifax at $2,580 and Ottawa with $2,450.

The cities with the cheapest rent are Saskatoon, where a one-bed is $1,230 and a two-bed $1,500, Regina at $1,240 and $1,450, Edmonton with $1,350 and $1,600 and Quebec City at $1,360 and $1,670.