Photo: City of Vernon

Vernon vacancy rate was at 1 per cent in 2024

The vacancy rate in Vernon dropped to 1 per cent in 2024.

In a lengthy development update presentation to Vernon city council on Monday city manager of economic development John Perrott said the vacancy rate decreased from 1.2 per cent in 2023 to just 1 per cent in 2024.

“I will note, while this is a slight reduction in the vacancy rate, we are up over 2021 and 2022 so hopefully it's a one year blip, but it gives us some insight into the market overall,” said Perrott.

A vacancy rate is the percentage of available rental units in the area – a lower rate means less rentals up for grabs. Typically, a healthy vacancy rate is considered about 3 per cent.

Perrott also said the city approved 176 new builds, which is down in 2024 compared to five and 10 year averages. He also said the city is optimistic for 2025 as 53 units have been approved in the first quarter and includes both multi-family and single family units.

Coun. Kari Gares, a mortgage broker by trade, said the threat of tariffs combined with Bank of Canada interest rates most likely impacted the real estate activity.

“We’re probably going to stay in a bit of an interesting time in 2025, but I do think 2026 is going to be better, and I think that that actually might align quite well with potentially new developments going to come on stream for next year,” said Gares.