Keeping it affordable

Whether or not greater investment in Penticton will drive property values up, Mayor Andrew Jakubeit says the city will be working to ensure there is a stock of affordable housing available.

The city was named a "blue chip" for real estate investment by Canadian Real Estate Wealth magazine, which could heat up the market. But Jakubeit says the main issue of housing affordability right now is a lack of available options.

"There hasn't been a lot of inventory for properties, which has sort of jacked the prices up, whether it's for purchases or for rental," Jakubeit said on this week's Mayor's Minute. "So adding more to the inventory should help sort of level that out."

Part of the reason for giving Penticton the title was the city's affordability and availability of amenities, along with incoming jobs from the Penticton Regional Hospital expansion. That, the magazine says, puts it into a prime spot for growth, which Jakubeit says should be weighed with the benefits of the small city feel.

"That's one of the things that attracts people to Penticton is the fact that it's Kelowna amenities but it still has that small town feel to it, or small town charm; it's very friendly," he said.

"We certainly don't want to lose that," he added, citing feedback the city got during a Valentine's Day engagement event. "That was one of the common themes, was not just the relaxed lifestyle, but it's a great community, has that community feel."

As for whether the blue chip title will create a rush to buy in Penticton's housing market, Jakubeit said that remains to be seen.

"We're conscious of that, and ... certainly government can't control or dictate the market," he said. "I think by adding more supply, that sort of helps keep prices in check ... and just because a real estate magazine says it's a solid investment, doesn't meant there's going to be an influx of people here."

He pointed to the recently released census population data, which showed a 2.7 per cent increase in population since 2011, which was about half of B.C.'s 5.6 per cent increase and well below Greater Kelowna's 8.4 per cent.

"Having a more modest growth rate is a good thing," he said, pointing again to the Valentine's Day feedback. "Growth and development is important, but it's not our number one thing. Making our community livable and sustainable and vibrant is sort of one of our key focuses, and that's what we're going to work on.

"I'm sure property values will increase, which speaks to people's investments here – a home is their largest investment – so that's also a good thing. And we're also very aware of trying to ensure it's affordable for all demographics."