Kelowna’s real estate market has seen steady growth, sharp fluctuations, and major neighbourhood transformations over the past 25 years. This overview tracks shifts in prices across different areas of the city, while highlighting the broader economic and policy changes that shaped those trends. Whether you’re buying, selling, or investing, understanding these patterns provides an edge in one of Canada’s most dynamic mid-sized markets.
Starting Point in the Early 2000s
At the start of the century, Kelowna’s market was quietly setting the stage for rapid growth. The median resale house price in 2001 was $177,000, up slightly from the year before. Demand was high, while listings were shrinking. This imbalance foreshadowed what was to come, as more people were drawn to Kelowna’s lakeside lifestyle, expanding economy, and relatively affordable homes compared to Vancouver.
Rapid Increases in the Mid-2000s
The mid-2000s brought some of the most aggressive price gains in Kelowna’s history. In 2003, the median resale price surged 17% to $221,500, one of the steepest jumps in decades. Forecasts suggested homes valued at $197,000 could climb past $257,000 by 2005.
By 2004, single-family detached homes averaged around $295,000. Neighbourhood breakdowns from early 2005 show how prices varied across the city:
- Dilworth: $405,000
- Upper Mission: $385,000
- Lower Mission: $370,000
- East Kelowna: $425,000
- Lakeview Heights: $354,500
- North Glenmore: $336,500
- West Kelowna: $325,000
- Shannon Lake: $316,750
- Glenmore: $300,000
- Black Mountain: $292,250
- Kelowna South: $282,500
- Rutland North: $252,550
- Rutland South: $251,250
- Kelowna North (Downtown): $229,000
Overall, the median climbed from $267,000 in 2004 to a forecasted $310,000 in 2005, a 16% increase in just a year.
Peak and Decline Around 2008
By 2008, Kelowna’s market reached unsustainable levels. Single-family homes peaked at $542,000 in March before tumbling by about $67,000 over six months, the sharpest drop in Canada at that time. Homeowners saw equity vanish at a rate of roughly $11,000 per month. By autumn, inventory skyrocketed: there were 6,692 listings and only 265 sales, representing more than two years’ worth of supply.
The correction hurt, but it also reset the market for future growth.
Recovery in the Early 2010s
In the aftermath of the financial crisis, Kelowna’s market stabilized. By 2012, sales were up 8% year-over-year, but buyers focused on lower price points. Detached homes under $400,000 made up nearly 40% of sales, up from just 22% in 2008. The city moved toward balance, with less speculative buying and more end-user demand driving sales.
Policy Impacts in the Late 2010s
From 2016 onward, provincial interventions reshaped the Okanagan housing landscape. British Columbia’s foreign buyer tax, initially at 15% and later increased to 20%, expanded into the Central Okanagan in 2018. While Vancouver saw dramatic shifts, Kelowna’s foreign buyer activity was limited even before the tax, falling to below 3% by 2018 and averaging less than 2% over eight years.
By 2018, average prices across housing types had grown sharply:
- Single-detached: $778,971
- Townhouses: $546,769
- Condos: $354,177
- Overall average: $583,144
From 2013 to 2018, detached homes rose 56%, townhouses 61%, and condos 49%. This confirmed local demand, not foreign investors, was driving the boom.
Downtown Core and Kelowna North Redevelopment
While older areas like Rutland and Glenmore maintained steady growth, Kelowna North and the Downtown core transformed completely between 2010 and 2025. Once a mix of modest homes and older rentals, the neighbourhood has become condo central, powered by high-rise projects like ONE Water Street and Ellis Parc.
Condos once priced under $300,000 in the early 2010s now regularly sell above $600,000, with lakeshore and luxury towers far higher. The construction crane count in Downtown Kelowna has been among the highest per capita in Canada in recent years—showing how redevelopment turned this neighbourhood into the city’s condo hub.
Pandemic-Driven Growth in the Early 2020s
The COVID-19 era triggered extraordinary price jumps. In just one year (2020–2021):
- Detached homes: $858,741 → $1,050,667 (+22.3%)
- Townhomes: $545,227 → $648,127 (+18.8%)
- Condos: $367,362 → $439,823 (+18.3%)
By July 2021, the city’s average home price crossed $1 million for the first time, fueled by remote work trends, low interest rates, and migration from major cities.
Adjustment After the Peak
The high point came in early 2022 before higher interest rates cooled demand. By 2024, average prices slipped to $813,974, down 2% from the year before. Listings rose more than 50% while sales dropped 8%.
Still, not every neighbourhood saw declines. Upper Mission, Lower Mission, and Glenmore stabilized at high values, while condos downtown remained in demand due to limited new supply.
Recent Neighbourhood Trends
In 2025, local dynamics vary sharply:
- Glenmore: single-family average $1,076,181; strata $585,257
- South Pandosy/Kelowna South: median $800,000, ranging from modest apartments to multimillion-dollar lakeshore estates.
- Upper Mission: continues to attract premium pricing due to schools, views, and new construction
- Downtown (Kelowna North): vibrant condo market with strong rental investment demand
The citywide median for detached homes in July 2025 was $1,215,300 (+6% YoY), while condos averaged $521,000 (+9.8% YoY).
Summary of Price Evolution (2001–2025)
Looking Ahead
The last 25 years demonstrate how neighbourhood identity, economic cycles, and national policies shape Kelowna’s values. Upper Mission and Dilworth’s steady rise reflects long-term demand for family neighbourhoods. Downtown Kelowna’s condo boom shows the power of redevelopment. Rutland’s relative affordability ensures it remains a first-time buyer hub. Going forward, interest rates and supply will dictate the next chapter. If borrowing costs fall, Kelowna’s mix of lifestyle appeal, limited developable land, and migration from larger centres suggests continued upward pressure.
For tailored guidance on these neighbourhoods and opportunities, contact our team at Coldwell Banker Horizon Realty. With decades of experience, we can help you navigate the Okanagan market with confidence.
The content of this article is for informational purposes only and should not be considered as financial, legal, or professional advice. Coldwell Banker Horizon Realty makes no representations as to the accuracy, completeness, or suitability of the information provided. Readers are encouraged to consult with qualified professionals regarding their specific real estate, financial, and legal circumstances. The views expressed in this article may not necessarily reflect the views of Coldwell Banker Horizon Realty or its agents. Real estate market conditions and government policies may change, and readers should verify the latest updates with appropriate professionals.
