housing
MORE THAN JUST AVERAGE
Better data and deeper conversations are required to improve affordability within the rental segment of our housing market. Here, we expand just a little beyond the "average" conversation.
Average rents are both an easy, and difficult thing to measure. Because of rental restrictions in British Columbia, looking at the average of all rents or the average asking rents on available homes will tell you two very different things. Those with long tenures will be paying below-market rates in today’s rising rental rate environment and show a lower average. But also, when you look at average asking rents, they are often skewed by a few higher-priced luxury listings, particularly in areas without a lot of listings available. So to try and better understand where asking rents are, it's useful to consider the distribution of rental rates.
Over the past three months in Kelowna, the average asking rents have been $1,595 for studios, $1,701 for one-bedroom homes, and $2,407 for two-bedroom homes—high numbers to be sure. A chunk of those listings come in a certain range, and give a slightly better sense for rents: 75% of studios range between $1,250 and $1,750, 53% of one- bedroom homes range from $1,250 and $2,000 and 48% of two-bedroom homes range from $2,000 and $2.750, which is still quite high considering incomes in Kelowna.
MAKING SENSE OF ASKING RENTS
80
60
40
20
0
0-500
500-1K
1-1.5K 1.5-2K 2-2.5K 2.5-3K
3-3.5K 3.5-4K 4-4.5K 4.5-5K 5-5.5K 5.5-6K 6-6.5K 6.5-7K
ASKING PRICE RANGE
STUDIO
BED
BED
BED
DATA: DISTRIBUTION OF ASKING RENTS, 3-MONTH AVERAGE, KELOWNA
SOURCE: VARIOUS LISTINGS WEBSITES
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