Apartment rents soar to record highs in Kelowna

It's never been more expensive to rent an apartment in Kelowna.

While house prices are sliding amid higher mortgage interest rates and runaway inflation, rents seemed not to have gotten the memo.

Instead, the median rent for a typical one-bedroom unit in the city in August was $1,830, a 6% jump from the $1,730 it was in July and a whopping 14.4% more than a year ago, according to figures from Zumper, the online platform that lists apartments for rent and compiles the monthly Canadian National Rent Report.

The trend of escalating costs also translates to monthly rent for a typical two-bedroom apartment, which was $2,430 in August, up 6% from $2,300 in July and a 17% leap from last year.

There may be a few reasons for apartments rents skyrocketing while the purchase housing market cools.

First of all, even if prices for houses, townhouses and condominiums have slipped of late to $1.018 million, $772,000 and $526,700, respectively, that's still unaffordable for many.

So, their alternative is to rent.

Second, some people who may be able to afford to buy a home are renting instead as they wait to see if prices come down further before finally buying.

Third, Kelowna is a desirable location with a vibrant economy and that means new people are always moving here and looking for a place to rent.

Fourth, some people that already live, work and rent here are moving around within the city as their circumstances and finances change, which also adds to the competition for apartments.

As a result, what's happening with apartments rents is always considered a great economic indicator.

"Kelowna ranked as the 5th most expensive rental market in the nation last month," said Zumper marketing manager Crystal Chen.

The only four cities pricier are Vancouver at $2,500 and $3,630, respectively for a one and two bedroom, Toronto with $1,980 and $2,530, Victoria at $1,970 and $2,550 and Burnaby with $1,960 and $2,700.

Kelowna is just ahead of No. 6 Oshawa ($1,780 and $2,100) and No. 7 Kitchener ($1,700 and $1,960).

The cheapest cities in which to rent an apartment are St. John's at $840 and $940 and Regina with $980 and $1,140.

Check out the full rent report at: https://www.zumper.com/blog/rental-price-data-canada