It was bound to happen.

After years of rapidly rising apartment rents — an inflation, if you will — apartment rents in Kelowna have entered the 'deflation' era.

The median monthly rent for a typical one-bedroom apartment in the city peaked at $2,010 earlier this year before going on a steady slide to $1,860 in October.

That's a drop of $150 a month, a 7.5% slip, a significant amount that could make the difference of being able to afford an apartment or not.

Photo credit: ZumperSome landlords have dropped prices and are offering one-two-and-three month free rent incentives to attract tenants.

"This period of rent deflation represents a notable shift in (Kelowna's) housing market, offering some relief to renters after years of steep increases," said Crystal Chen, the marketing manager at Zumper, the online platform that lists apartments for rent and generates the monthly Canada Rent Report.

She's right.

When Kelowna's rents were ascending, the vacancy rate was an ultra-tight 1.3%.

That means in any given month, there were only 1.3 apartments for rent for every 100 apartments in Kelowna.

With supply so limited, potential renters scrambled for apartments and the heated demand meants landlords could ask more and more.

Photo credit: ZumperThe median monthly rent for a typical one-bedroom apartment in Kelowna has dropped from a record-high of $2,010 to $1,860.

Over the past couple of years, the city, the province and Canada, have made a concerted effort to have more apartment buildings constructed with incentives for developers such as tax breaks, low-interest loans, additional density, speedy approvals and easing parking provisions.

The evidence is all the 6-storey rental apartment complexes that have popped up in Kelowna.

All the additional apartments have pushed Kelowna's vacancy rate up to about 6%.

That kind of vacancy rate and increase in choice means potential renters can shop around and landlords have to drop prices.

It's the age-old supply-and-demand dynamic.

Photo credit: ZumperCrystal Chen is the marketing manager at Zumper, the online platform that lists apartments for rent and generates the monthly Canada Rent Report.

Kelowna's drop in median monthly rent from $2,010 to $1,860 isn't the only discounting that's going on.

To save face and avoid looking like they are slashing rents, landlords are offering bonuses like one or two months free rent when you sign a 14-month lease, free parking and-or free wifi for a year.

A quick look at the Zumper website shows no less than a dozen apartment complexes offering such move-in incentives.

One building — 285 Dougall in Rutland — is offering 3 months free rent.

The apartment rental market somewhat mirrors what's happening in the overall housing market.

Demand is soft to buy single-family homes, townhouses and condominiums and prices have eased anywhere from 7.8% to 16%.

With inflation, higher mortgage interest rates, an iffy economy and wages stagnant, consumer confidence has suffered and it affects decisions like buying a home or renting an apartment.

Even with lower prices, Kelowna's housing market is considered unaffordable for many.

Potential buyers or renters may be staying put — even if they'd like a bigger and-or better place.

And that includes those who are living with their parents or with roommates when they'd prefer to have their own apartment.

When it comes to typical two-bedroom apartments in Kelowna, the median monthly rent is $2,340, a fairly minimal 1.7% drop over the last year.

Kelowna is the 8th most expensive city in the country to rent an apartment after Toronto ($2,500 for a one-bed and $3,350 for a two-bed), Burnaby ($2,300 and $2,800), Toronto ($2,170 and $2,760), Victoria ($2,010 and $2,620), Halifax ($2,010 and $2,580), Kingston ($2,000 and $2,230) and Ottawa ($1,950 and $2,440).

The cheapest places to rent in Canada are Regina ($1,310 and $1,570), Saskatoon ($1,310 and $1,590), Edmonton ($1,380 and $1,700) and Quebec City ($1,400 and $1,720).

_{Thumbnail photo courtesy of Zumper.}