When hunting for the perfect location in British Columbia to lay down roots, arguably the most important aspect to consider, is affordability. In this article, we will be specifically discussing Vancouver vs. Kelowna’s affordability regarding property prices and consumer buying power.
Vancouver vs. Kelowna Real Estate Pricing
To begin, let us start on the main topic of the price differences between Vancouver and Kelowna’s real estate markets. According to a market survey forecast for 2021, compiled by the real estate company Royal LePage, it is anticipated that the median price of a detached home in Greater Vancouver will increase from $1,158,400 up to $1,262,000. A growth of just over 9%. Two-story detached homes are expected to have a 10% growth from $1,519,700 to $1,671,700. Condos are predicted to have a slower growth rate at 3.5% with prices moving from $661,200 to $684,300.
In comparison, Kelowna’s real estate market has continued to grow while staying at a more appealing, affordable price level. The British Columbia Real Estate Association has recently released their Fourth Quarter 2020 Housing Forecast with their 2021 pricing and growth predictions for the Kelowna housing market. They anticipate the median price of a detached home to increase from $730,000 to $745,000. A growth of just over 2%. Two-story townhomes to rise almost 4% from $530,000 to $550,000 and condos to move up 3% from $355,000 to $365,000.
When we begin to break down the numbers above, in order to compare and collate the differences in affordability between the two cities, we can see a vast divergence in costs. On average, depending on the property, a home in Vancouver will cost 40-70% more than a home in Kelowna.
As well, when considering what property could bring more value to your money, it is good to keep in mind that the Bank of Canada has decided to hold steady their benchmark interest rate at 0.25% with major Canadian banks offering 1-3 years conventional mortgage rates between 2.79% and 4.79%. Due to many contributing factors, BC has truly become a buyers’ market. For weekly updates, from the Bank of Canada, on interest trends please follow this link.
Vancouver vs. Kelowna Consumer Buying Power
Another particularly important aspect to consider when choosing to settle down in either Vancouver or Kelowna is the cost-of-living comparisons. Numbeo has a fantastic break down of all costs a person or family would have to work into their budgets. They list prices for such things as restaurants, groceries, transportation, utilities and childcare. For example, in Vancouver, restaurants are on average 11%, grocery prices 19% and childcare (Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child) 45% more costly than Kelowna prices. All key details to take into account when making your buying decision.
In conclusion, both cities offer great weather, a wonderful variety of amenities, beautiful landscapes and the confidence that you could find your next perfect home. It is crucial though, that you ensure you are considering all the above outlined affordability details when choosing the city that is right for you. For some fantastic home options in Kelowna, check out the listings below and contact Desiree to view today.
For affordable luxury right in the heart of downtown Kelowna, check out the available listings below and give Desiree a call to view your future home today.
Don't forget to also check out my latest Luxury Market Report.