Stop us if you’ve heard this before, but real estate is booming all over Canada, from big urban centers to scenic mountain towns. The latest addy investment opportunity is dropping in Vernon, British Columbia, a bucolic city in the Okanagan region that too is seeing a rising market.
Here’s what is happening in Vernon and why addy has turned to this beautiful spot in the B.C. southern interior for its latest investment.
Vernon Real Estate
Like most places in the country, Vernon is experiencing a low supply of houses for sale as 2022 opened. This is due to the real estate buying frenzy that began a few months into the pandemic and continued throughout 2021.
The average price for a single-family home in Central Okanagan is now above the six-figure mark at $1,037,500. Meanwhile, the average price of a single-family home in North Okanagan, where Vernon is located, rose to $711,600 in 2022 while South Okanagan sits at $699,000. Earlier in February, the British Columbia Real Estate Association forecasted housing sales would decrease throughout the year and possibly into 2023, but prices will remain high with continued high demand. They predict home prices will increase by 8.5 per cent in 2022.
These trends are fairly representative of what is happening across Canada, where prices continue to go up while supply is starting to dwindle.
Vernon rental market
Similarly, Vernon is following the pattern of what’s happening elsewhere in the provinces and the country concerning rentals. Vacancy rates are the same or less than what they were a year ago, while prices for a bachelor, one-bedroom and two-bedroom apartment trickle upward.
Just about 50 km south, Kelowna is experiencing a similar problem, where vacancy rates are low, rental prices are high and even a recent affordable housing complex isn’t enough to address the growing issue.
As a whole, spurred by a boom in Vancouver, British Columbia has the highest average rental prices in the country. This has led to a push for purpose-built rentals in Canada with a particular focus on affordable housing; the recent addy in Hamilton took a societal-first approach with its 96-unit development that is 100% affordable housing.
Tourism in Vernon
The natural beauty of British Columbia in general and the Okanagan region in particular continues to attract tourists throughout the year. Skiing, hiking, skating and snowshoeing bring people from around the provinces and country in the winter while the summer offers beautiful scenery and a chance to swim, golf, sail and relax in the sun.
Earlier this month, the Vernon Winter Carnival returned for its 62nd year for a 10-day event in the city, including a beloved parade through the city. This annual event is one of the most anticipated times of the year in the region.
What’s more, Vernon’s proximity to dozens of lakes means there are also plenty of beaches, parks, trails and resorts to explore. It’s one of the reasons why more people are considering moving to the area, as remote work allows people to spend time where they can be close to nature instead of close to the office.
addy in Vernon
The latest addy in the heart of Vernon is a mixed-use commercial and residential building at 3222 30th Street. The building features both apartment rentals and businesses, with five residential units and four retail units including a popular Greek restaurant and art gallery.
Through some cosmetic upgrades to improve the building with particular focus on updating the residential apartments, this value-add opportunity provides an exciting and perhaps more personal investment in the beautiful and intimate setting of Vernon, BC.