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The state of the Central Okanagan’s rental market has increased from severe to almost critical in just a few short months.
According to the Canadian Rental Housing Index, the Central Okanagan has approximately 74,940 renter households and of those, 16,130 people are renting. That represents 22 per cent of the housing population. The median income of renters is $40,777 and the average rent is around $1,112 including utilities. The data also shows that an average of 26 per cent of income is being spent on rent and utilities, but more than half of renters spend 30 per cent of their income on housing needs.
There are also a high number of renters living in households that are overcrowded, around 1,125 and according to the BC Non-Profit Housing Association (BCNPHA), plenty of new properties are needed to meet upcoming demands.
By 2021 projections indicate that 2,687 new rental units will be required to meet demands. By 2031 that demand will grow to 5,038 and by 2036 it will grow even further to 6,337 units needed.
Core housing projections also indicate a large demand as by 2021 734 new subsidized units will be required. By 2036 that number is expected to balloon to 1,716 units required. The largest majority of renters in the Central Okanagan, according to BCNPHA are those who work in restaurant and hospitality.
These workers only make an average income of $21,570 per year. Retail workers make up the second largest rental population, with an average worker taking home $27,751. Those who work in healthcare, construction, and professional services make up the rest of the renters in the community.
Compared to the rest of the country, the Central Okanagan ranks 270 out of 284 and the current housing situation is considered “critical” as it is on the higher end of being severe. With low scores in overcrowding, bedroom shortages, and a wide income gap, the region needs to address the rental problems as demands continue to increase.
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