Housing starts in Kelowna finished 2016 up 72% from the year before.
Taylor Pardy, Senior Analyst with Canada Mortgage and Housing Corporation, says there were 2,196 starts last year compared with 1,280 in 2015.
"Starts were driven up in 2016 by new construction of a large number of rental apartment units getting underway, as well as, some new condominiums. In general, these new additions in the rental stock will be welcome as demand for rentals in Kelowna has been elevated over the past few years and the vacancy rate, as of October 2016, was estimated to be at 0.6%," he says.
Pardy says low mortgage rates, and stronger migration fuelling population growth, are the main reasons behind the Kelowna construction boom.
Looking ahead, Pardy says CHMC is anticipating the market to cool this year, and in 2018, with starts between 1,520 and 1,780.
"Part of the reason behind this is we are anticipating the rate of population growth to slow down a little from what it's been doing in 2015 and into 2016. And over the same period of time, we are anticipating that mortgage rates will begin to creep up - so these factors are going to add to a bit of slowing in the market," he says.
Provincially - housing starts were trending lower in December, compared to November, because of a decrease in apartment construction - but for 2016 overall - housing starts in BC reached almost 39,500 units - the highest level since 1972.