Wages in Kelowna failing to keep up with skyrocketing home prices

Kelowna grows unaffordable

The affordability of home ownership in Kelowna is rapidly growing out of the reach of many people, according to a new national report.

The report by Point2Homes has ranked Kelowna as the fifth-most cost-burdened, or house-poor city in the country as income growth has failed to keep pace with skyrocketing home prices.

Mortgage payments in 2020 now represent 40.8 per cent of household income in Kelowna, up from about 27 per cent in 2010.

Spending more than 30 per cent of a household's income directly on a mortgage is considered unaffordable.

Household incomes in Kelowna would need to grow 41 per cent from just over $100,000 to $141,000 for the real estate market to be deemed “affordable” again.

The benchmark price for a home in Kelowna more than doubled from $475,000 in 2010 to $957,000 in 2020. Incomes, however, have only grown 34 per cent in that same time frame.

The issue is not confined to Kelowna, with mortgage affordability worsening in 38 of the 50 largest Canadian real estate markets.

The most affordable real estate markets are all in Eastern Canada, with Halifax, N.S., Windsor, Ont. and London, Ont. seeing roughly 11 per cent of incomes spent on mortgages.

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