All that construction of 6-storey apartment buildings in the city is having an impact, chipping away at monthly rents.

In August, the median monthly rent for a typical one-bedroom apartment was pegged at $1,850, down from $1,890 in July and off a dramatic $160 from the record-high $2,010 in June.

"The sustained cooling has been fuelled by a surge in new supply (like all those 6-storey apartment buildings in Kelowna) and softer demand, particularly in markets that were previously overheated (like Kelowna)," said Crystal Chen, marketing manager at Zumper, the online platform that lists apartments for rent and generated the monthly Canadian Rent Report.

"Unless demand resurges, through renewed immigration or housing policy changes, this downward trend looks likely to persist through the fall."

That's good news for apartment searchers in Kelowna, which did have an inflamed housing market.

In 2023, the apartment vacancy rate was an ultra-tight 1.3%, meaning in any given month, only 1.3 of 100 apartments in the city was available for rent.

That created competition for the few apartments available and drove rents to record highs.

A concerted effort by the federal, provincial and municipal governments (by providing tax breaks, preferential loans, quicker approvals and building concessions) resulted in a building boom of apartment buildings and an easing in rents.

Kelowna's vacancy rate is estimated to now be between 5% and 6%.

Some would say, Kelowna's $1,850-a-month rent is still unaffordable, in fact, the city is the 7th most expensive in the country behind only Vancouver ($2,500), Burnaby ($2,300), Toronto ($2,200), Halifax ($2,100), Victoria ($2,090) and Ottawa ($1,980).

However, the construction spike, more apartments coming on the market and increased competition means Kelowna landlords have had to reduce rents to lure renters.

Photo credit: ZumperMidtown on Underhill Street has a two-months free-rent incentive

Besides the slide from the record $2,010 just a couple of months ago to $1,850 today, landlords are also offering incentives to get tenants to sign on the dotted line.

For instance, a quick look on the Zumper website shows that new apartment buildings Kovo, Lavida, Midtown and Parkview Valley are offering two months free rent if tenants sign a 13 or 14 month lease.

Trio is offering one-and-a-half months free.

And Glenmore Central, 285 Dougall, Mission Flats and Lindgren Monor are giving away one month free.

Photo credit: ZumperThe median monthly rent for a typical one-bedroom apartment in Kelowna in August was $1,850, according to Zumper.

The cheapest places to rent a one-bed in Canada are Edmonton, Regina and Saskatoon, all at $1,300 a month, Quebec City at $1,410.

The median monthly rent for a typical two-bedroom apartment in Kelowna in August was $2,380, unchanged from July and down 3% from August 2024.

Two-bed rent in Kelowna peaked at $2,700 in September 2023.

That also makes Kelowna the 7th most expensive city in the country to rent a two-bed after Vancouver ($3,450), Burnaby ($2.930), Toronto ($2,800), Victoria ($2,700), Halifax ($2,620) and Ottawa ($2,490).

The most inexpensive two-beds are found in Saskatoon ($1,510), Regina ($1,610), Edmonton ($1,640) and Windsor ($1,660).

_{Thumbnail photos from Zumper}