Despite some weak spots, Central Okanagan economy is holding up well

CENTRAL OKANAGAN – Despite a slowdown in construction starts and a drop in building permit values, the economy of the Central Okanagan is holding up well, according to the economic development commission.

Housing starts are down 30.6 per cent as compared to the first half of 2017, the commission says in its Q2 indicator report, while the total value of building permits is down 8.6 per cent compared to the first five months of last year.

The commission doesn’t measure real estate sales but the median new home price is up 32.3 per cent from 2017 to $893,000.

Average rent is also up eight per cent for a two-bedroom apartment but the commission predicts the region’s razor-thin 0.2 per cent vacancy rate will rise to 2.5 per cent this year as hundreds of new rental units come onstream.

We’re a bit richer this year as the average household income has climbed 19.5 per cent to $71,127 since 2005 while personal bankrupticies have dropped by 35.7 per cent since 2013, the commission says.

Would-be entrepreneurs are taking out more business licenses, up 11.6 per cent since 2013 (although down 3.6 per cent from 2017).

Kelowna Airport continues to fly high, handling over a million passengers in the first six months of 2018, up 13.3 per cent from last year.

There’s more of us and more of us are working. Population of the Central Okanagan rose by almost 5,000 in 2017 to 199,000 while the number of residents in the labour force rose by 4.5 per cent compared to last year.

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