Central Okanagan faces rising unemployment and housing declines

A Q2 2026 report from the Central Okanagan Economic Development Commission indicates that while economic activity in the Central Okanagan is growing, the region faces significant unemployment and housing challenges.

Total employment rose by 3.1 percent to 122,700 people, and the number of people eligible for work increased by 12.4 percent since Q2 2025. However, the unemployment rate has climbed to 8.3 percent, a 2.2 percent increase from the previous year. The report suggests this rise may be due to more individuals actively seeking work than there are available positions.

Housing construction has also seen a sharp decline. New housing starts in Q2 2026 totaled 1,143 units, representing a 37 percent drop compared to the same period in 2025. Multi-family unit construction saw an identical decline. The report attributes this slowdown to changing market conditions, project timing, and financing costs for developers.

In response, local municipalities are implementing measures to support development. West Kelowna has partnered with the federal government to use a pre-designed home catalogue to accelerate permitting, while Kelowna has provided a two-year relief from development cost charges.