According to BC Stats, the Okanagan population is projected to increase by 25% over the next 20 years. This growth is driven by both natural increase and in-migration from other parts of Canada and around the world.
The Canadian government has set its sights on an even brighter future for the country, with a goal of admitting 465,000 permanent residents in 2023, an increase from 431,000 in previous years, and an even higher goal of 485,000 in 2024. British Columbia's share of this growth is estimated to be around 15%. The western provinces, including BC, have seen a 17% increase in immigration from 2020 to 2021, with a total of 69,236 immigrants in 2021 compared to 28,492 in 2020.
Net interprovincial immigration has also doubled since 2017, with 33,656 people moving to the province in 2021, compared to 15,293 in 2017. We are moving into a period of above-average population growth and change nationally, which could represent a new era for community building throughout the province. The Okanagan region is expected to see a significant increase in its population, with the central Okanagan region's population estimated to reach 319,436 by 2040, a 90,000+ increase from its current population of 229,401.
The current population of the central Okanagan region by age is diverse, with 21% being aged 0-24, 40% being aged 25-64, and 58% being aged 65+. With such a dynamic population, the Okanagan region has a need for 30% more housing completions than currently anticipated to meet the upcoming population demand.
Currently, the Okanagan housing market is experiencing a shortage of supply, with high demand leading to rising prices. BC Stats reports that the average price of a home in Okanagan increased by 11% from 2019 to 2020, a trend that is expected to continue as the population grows.
To address this housing shortage, new development is needed. The Okanagan region is a unique market with varying communities and demands, and developers need to create housing that fits the needs of each community. There is a need for both affordable housing and higher-end properties, as well as a range of types, including single-family homes, townhouses, and condominiums.
One area of potential growth in the Okanagan is in the tech sector. Kelowna, in particular, has seen an increase in tech companies and workers, with firms like Amazon and Microsoft opening offices in the area. This growth is expected to continue, with the region becoming a hub for tech and innovation. As more tech workers move to Okanagan, the demand for housing will increase, creating opportunities for developers to meet this need.
Overall, the Okanagan housing market is poised for continued growth in the coming years, with a growing population and increasing demand for housing. Developers who can create homes that fit the needs of the region's diverse communities will be well-positioned to succeed in this growing market.
