The estimated population of the Regional District of Central Okanagan (RDCO) in 2004 was 159,836 (Source: BC Stats P.E.O.P.L.E. 28 July 2003). High inflows of inter-provincial migrants have resulted in the population of this area more than doubling in the last 25 years. This region was one of the highest growth areas in the province through the nineties. Population growth is expected to remain strong as a result of in-migration. The population growth rate is expected to be 1.5% in 2004, increasing to 1.8% in the years 2005 – 2007, and gradually declining to 1.3% by 2031.

Population growth in the Central Okanagan (RDCO) increased dramatically in the early 1990’s creating intense demands to review and upgrade infrastructure. The past several years have seen slower but continued growth, with 1.65% population growth forecast for 2004. Much of the area’s appeal relates to exceptional scenery, moderate climate and lifestyle - a smaller community with the amenities of larger centres. The industrial base of the Central Okanagan (RDCO) is well diversified and has enjoyed job growth in most sectors, especially the service industries. The economy is not significantly dependent on any one industry but benefits from a strong foothold in the major and minor sectors. According to the EDC’s 2003 Business Licences figures there are approximately 9,700 firms.

Approximately 30% of these jobs are in the service industry, similar to the rest of B.C. Unlike many parts of British Columbia, the Central Okanagan regional economy has remained relatively strong over the last two years.

With a population of approximately 103,500, Kelowna is the largest community in the Central Okanagan and one of the fastest growing cities in B.C. It is located approximately 400 km east of Vancouver, B.C. and 130 km north of the United States border.

Kelowna continues to be one of the fastest growing cities in British Columbia, with manufacturing, high technology and health care sectors in particular attracting new businesses and residents to the area. This is fuelled by the fact Kelowna was recently identified as the least costly place to conduct business in the Pacific Region of North America in a study of 121 cities in the 11 countries by KPMG. The city’s vibrant retail and commercial base attracts a trading area of 450,000 residents, making it the largest centre for urban development, business, commerce, retail, and health care services between Greater Vancouver and Alberta.

The city is known all over the world for its championship golf courses, extraordinary powder skiing and award-winning wineries. Arts and cultural amenities are rapidly evolving to meet a broad range of interest for both residents and tourists.

Kelowna is considered to be the largest trading centre between greater Vancouver and Alberta. Residential and commercial development has paralleled the brisk increase in population growth over the past 20 years. A diverse industrial base has enabled Kelowna to sustain a healthy economy. Consequences of this growth include intense competition for jobs in many industries and competition for consumer dollars in the well supplied retail sector, however the area continues to attract a wide range of entrepreneurs.

The CMHC report, released in March 2004, indicated Kelowna has the highest yearly increase of retail values of homes at 21%.

The Central Okanagan new home market moved ahead in 2003. Housing starts increased significantly by 11% to 1,238 units from 1,111 units in 2001, the highest level since 1997. Multi-family construction accounted for nearly all of the increase. Them single sector posted smaller gains. Sharply declining interest rates have helped sustain housing demands in the face of an increasingly sluggish BC and Canadian economy. The Kelowna area economy and population have continued to grow despite job losses in some sectors. Kelowna’s large retirement/ senior population continues to create a major demand for housing, while providing a steadying influence on the market overall. Below are tables representing Kelowna data for Annual Number of Housing Starts (New) and Annual Number of Home Sales through the MLS.

Source: CMHC December 2003

Source: CMHC December 2003

B.C Stats reports that in 2003 there was approximately 1,216 people employed in the construction labour force in the Central Okanagan. The industry began to accelerate in 1988 and peaked in 1992 when the annual value of building permits reached a plateau of $281.1 million. Constructionactivity remained at a relatively high level through 1993.

The construction sector is very sensitive to economic growth and business cycles and as of the end of 2001 has never regained the dollar value experienced in the early 1990’s. The construction sector received a significant boost in late 2001 and 2002 with very low interest rates and a slowly improving BC economy pushing the building permit values to pre-1994 levels. 2003 saw tremendous growth in this industry and total building permits surpassed the early 90’s boom.  Kelowna and area shows continued solid increases in new housing construction since 2000.

The following table provides a summary of the total value of building permits in the city of Kelowna (includes residential, industrial/commercial, farm, and institutional/government values).

Kelowna's cumulative building permit construction value increased from $117.3 million in 2000 to $506 million in 2003.