Kelowna's rental vacancy rate now sits at 6.4%, among the highest in Canada.

With provincial and municipal government policy encouraging development of rentals, some see the rising vacancy rate as a sign that housing pressures are easing. At the same time, vacancies at that level traditionally discourage developers from entering a market.

Kelowna's vacancy was previously as low as 0.6%, which saw rents soar.

"There’s a downside to 6.4 per cent," said deVeer.

"What I find so interesting is that nobody's put together the high rate (8.6%) of unemployment right now. It's wonderful vacancies are high... but unemployment is also high. So what does that mean? It means people have left our city to go find work elsewhere."

Local construction companies have felt the impact directly, with one firm shrinking from 18 employees to just two, and award-winning renovators now working solo jobs just to stay afloat, according to deVeer.

"I don't really call that lucky for a lot of people."

Part of the issue, according to Mattiussi, is that the market is currently "off equilibrium."

"I think getting up [to this rate] was a perfect storm... nobody builds multifamily. You make the commitment many years before you pour the concrete," Mattiussi says. "I think on one hand, we're overbuilt in the condo market... The best thing it does is it brings rents down... but is that a healthy way to bring rents down? No, I don't think so."

The discussion also highlighted the skyrocketing cost of delivery as a major barrier to new housing. deVeer points to what she calls B.C.’s aggressive building codes, which exceed national standards, as a key driver of costs.

"Our homes are highly over-engineered," says deVeer. "If we're going to change anything, we have to address the cost to build because labour rates aren't going down... We tax housing like we do alcohol and cigarettes, which is crazy."

While development cost charges (DCCs) remained a contentious topic, Mattiussi argued they are necessary to prevent taxpayers from footing the bill for new growth, though he admitted there needs to be a balance.

"Without DCCs in place, I've watched developers go bankrupt in the 90s," Mattiussi says. "When you look at the city of Kelowna, it has some of the highest rates in BC, and yet the lowest rates of property tax."
One Foot Off Center will be published monthly by Castanet, on YouTube and in an audio-only version on Spotify.

On this week's episode, the panel discusses the impact of potential new Airbnb regulations in Kelowna, highlighting challenges during peak seasons like long weekends and the upcoming Memorial Cup.

Scott Lanigan, says his church does hundreds of weddings every year, and the Airbnb rule changes had a dramatic effect on Kelowna as a destination wedding location.

"With all the people coming here, trying to find a place to stay, is so difficult, especially in the hot seasons of June, July and August," Lanigan says.

Jeff Cox points out that Kelowna has been a tourist destination for many years, and the lack of places for tourists to stay over the past several years has had a serious impact.

"We don't have Airbnb, we don't have a plethora of great hotel options. We don't have any real family orientated hotel options. The motor ins of the city have gone by the wayside. It's just so Canadian for us to take away all the places to stay and then ban Airbnb. How did we get here?" says Cox.

Cox points out the irony that some buildings in Kelowna were built with Airbnb in mind.

"We have buildings that were built for Airbnb, and we've not let them continue to operate, the Shore across from the El Dorado, Playa del Sol. I'd start there, and then you've got to move at a conservative pace to say, we are going to allow it in other areas," Cox says.

Former City of Kelowna chief administrative officer, Ron Mattiussi points out that short-term rentals put pressure on people who live in Kelowna all year round. The other was where the city allowed some Airbnbs to operate.

"I remember getting many calls, because the building next door is being rented. And they said, Look, 'I have to get up in the morning. I have kids, and I have to put up with Calgarians partying in the hot tub till three in the morning every night, golfing and then partying.'

"When you get into the single-family neighbourhoods, I get a little concerned," Mattiussi says.

The panel agreed that there is probably a way to zone Airbnbs so they wouldn't impact the long-term rental market.
"I think it's really important that people know the rules. If I make a big investment in my home, I want to have some surety that it doesn't become a commercial hotel next to me," Mattiussi says.

From there, the panel transitioned into talking about their personal grades for Premier David Eby and the provincial NDP government.

Mattiussi gave him a B for effort, "he seems to act very unilaterally on most things that he deals with, not necessarily, it seems, in consultation with the ministers or people affected. That would be my biggest criticism, not so much the pieces of what he's doing, but how he's doing it."

Lanigan says he feels policy is only successful when people can point to a real change in their lives, not just a headline. He gives Eby a B-.

"You've talked about decriminalization, you've talked about these things, but what's the change for me? How's my Tuesday look different? And I think for so long, my Tuesdays looked exactly the same or worse on a number of fronts, and at what point does the frustration just boil over," says Lanigan.

Cox gives Eby a failing grade.

"David Eby is failing on every front right now. I'm sure Eby has the best intentions when he gets up in the morning. I don't think he's a bad human being. Healthcare is failing because of bureaucracy. Housing is failing, listen, we could do 10 podcast shows on decriminalization. It's never his fault," Cox says.

Lanigan worries about how the next generation will view the political process.

"What are we telling the next generation if we can't be grown-ups and just talk. Unity does not mean uniformity. It just means unity. It means I can have a differing opinion, but I can be a human being, and we can actually go towards a greater goal together, rather than trying to tear each other apart," says Lanigan.

On this week's podcast, the panel discusses the complex issues facing Kelowna as it balances its identity as a resort destination with the realities of a rapidly growing urban centre.

The discussion touched on everything from street safety and housing to the urgent need for a more robust local economy.

Scott Lanigan pointed a recent list that ranked Kelowna the 122nd most desirable place to live in the world.

"What lowered our rate of desirability was safety, and that was one of the biggest factors," Lanigan said, adding that the city needs to find a "more human, relatable focus" to help those caught in the cycle of homelessness.

Cassidy deVeer pointed to the economic divide between the wealthy and regular folk in the Okanagan.

"We're a city of haves and have-nots," deVeer said. "We need to have a lot more high-paying jobs in this community if we're going to get people moving here to live and work and raise a family here."

Host Rick Maddison suggested that while technology like CCTV might help with safety, the root of the issue is often financial. "The jobs would fundamentally solve a whole bunch of problems," Maddison said, discussing the potential for 24-hour monitoring to change the "face of safety" in troubled areas.

Former Kelowna city manager Ron Mattiussi argued that enforcement and surveillance only go so far without provincial support for mental health. "People need to be treated, until our government, in fact, deals with that, and we could hire all the police we want and all the bylaw officers, because they can't do anything."

Despite the hurdles, the panel agreed that Kelowna is not going to stop attracting people anytime soon, with Mattiussi noting that "people still find this a desirable place to live."

One Foot Off Center will be published monthly by Castanet, on YouTube and in an audio-only version on Spotify.