Kelowna Cost of Living: Is Living in Kelowna Expensive?

Kelowna, located in British Columbia's scenic Okanagan Valley, offers a lifestyle filled with stunning views, outdoor recreation, and a vibrant community. As the city's popularity grows, so does its cost of living. Whether you're considering moving here for work, retirement, or just a change of pace, it's important to understand what to expect financially. Let's explore the key factors that influence Kelowna's cost of living, from housing to daily expenses, to give you a clear picture of what makes this beautiful city so appealing.

5 Things to Know About the Cost of Living in Kelowna

• Kelowna has a higher cost of living than the Canadian average
• The median home price is typically in the low $800s
• The average monthly grocery bill for one person is around $430
• Childcare is getting more affordable, but waitlists are common
• The median household income after taxes is around $75,500

Kelowna Housing Costs

The real estate market in the Central Okanagan region shows how desirable homes in Kelowna really are. Single-family homes have a median price in the $900s, with the luxury market skewing the average upward to just over $1 million. The most expensive luxury homes in Kelowna easily exceed $5 million and can sometimes surpass $10 million. Overall, the median home price in Kelowna is around $815,000.

Condos in Kelowna typically list in the mid-$400s, though properties can be found starting in the high $100s and low $200s. At the high end, the best luxury condos have penthouses in the multi-millions. There's truly a home available for buyers with any budget. 

To help you get an idea of where to start looking for homes in your price range, here's a sampling from some of the best neighbourhoods in Kelowna:

• Lower Mission: condos typically start in the low $300s, single-family homes in the low $700s
• Kettle Valley: single-family homes typically start around $1.4 million
• University District: condos typically start in the high $400s, single-family homes in the $900s
• Glenmore: condos typically start in the low $300s, single-family homes in the low $700s
• Rutland North: condos typically start in the low $200s, single-family homes in the low $600s

The prices of homes in surrounding communities vary from those in Kelowna, with most of them lower. For example, to the south, the median price for homes in Penticton is about $670,000. To the north, homes for sale in Vernon have a median price of just under $700,000.

Median Rent

The average monthly rent for a one-bedroom unit in Kelowna is around $2,000, and two-bedroom units typically rent for around $2,500. Renting a room or suite averages around $1,100.

Unsurprisingly, rents vary by neighbourhood, and by what type of property you're renting. Rent tends to be more expensive in Downtown, Lower Mission, Wilden, and Dilworth, while more affordable rents can be found in suburbs like Vernon, Lake Country, Black Mountain, Glenrosa, and Peachland.

Utilities

The cost of utilities in Kelowna averages about $176 per month for electricity, gas, water, and sewer. Due to Kelowna's climate, utility bills can fluctuate quite a bit between summer and winter. Internet service averages about $70 per month.

Fortis BC serves the vast majority of Kelowna, while BC Hydro serves areas north of Kelowna and all of West Kelowna. Fortis is also the primary natural gas provider, though residents can choose independent gas marketers if they wish.

City of Kelowna Water Utility is the primary water provider. Glenmore Ellison Improvement District, Rutland Waterworks, and Black Mountain Irrigation District have different water providers.

Property Tax & Homeowners Insurance

The residential property tax rate in Kelowna is $4.2384 per $1,000 of assessed value, or 0.0042384%. For a house assessed at the median home price of $816,200, this would come out to an annual bill of $3,459.38.

The average price of homeowners insurance in British Columbia is $1,200–$1,700 per year or $100–$142 per month, though this will vary depending on how comprehensive your coverage is. For tenant insurance, the average cost is around $300 per year or $25 per month. The average across all of Canada is about $80 per month for homeowners insurance and $20–$50 per month for renters insurance.

Kelowna Food Costs

The cost of food in Kelowna is more expensive than the average across all of Canada, largely because British Columbia is one of the most expensive provinces for food in general. The average monthly cost of groceries for one person in Kelowna is around $429. This doesn't include restaurant dining.

For comparison, the average cost of groceries in Vancouver is typically between $400 and $500, and the average in Toronto is around $300–$400.

The average Canadian household spends around $250 per person each month on food according to Statistics Canada, not counting dining out. However, according to the Canada Food Price Report, the average should be closer to $339 for healthy food consumption.

Kelowna Transportation Costs

All residents of British Columbia are required to buy a basic car insurance policy through the Insurance Corporation of British Columbia. This monopoly once made British Columbia the most expensive province for car insurance, but it's since been restructured to a no-fault system instead of a tort system, drastically reducing prices. The mandatory policy covers liability, accident benefits, and underinsured driver protection. However, optional coverage, such as collision, can be purchased through private insurers. Auto insurance in British Columbia costs, on average, around $1,200 per year.

Cash fares for Kelowna's BCTransit are $2.50, though children aged 12 and under ride free. Children five and under must be accompanied by a paying adult. Other fare options include:

• 10 rides: $22.50 (buy nine, get one free)
• Day pass: $5.00
• 30-day pass: $70 (savings of $80 compared to day pass)
• 30-day pass (post-secondary student): $55
• Semester pass (post-secondary student): $176

HandyDART paratransit fares cost $2.50, with ticket packets and monthly passes available.

The cost of a taxi ride is $4.05 plus $2.60 per kilometre. The wait fare is $48.31 per hour. Rideshare companies Uber and Uride are also available in Kelowna.

Kelowna Healthcare Costs

Public health insurance is available to all Canadian citizens and permanent residents. Medical Services Plan, or MSP, is the public insurance plan for British Columbia and covers the cost of most medically necessary healthcare services. Covered services include those provided by physicians and midwives, dental and oral surgery performed in a hospital, medically required eye examinations, and some orthodontic services. Premiums for MSP were eliminated on January 1, 2020.

Kelowna General Hospital provides a full slate of medical services in the Okanagan Valley area and is located in Kelowna. The hospital has 24-hour emergency and trauma services, ambulatory and outpatient clinics, and diagnostic and paramedical services. Specialties include cardiac surgery, psychiatry, and outpatient nutrition.

Kelowna residents ineligible for MSP or otherwise do not register for the program can expect to pay about:

• $95 for a 15-minute doctor's visit
• $183 for individual healthcare insurance
• $549 for family coverage 
• $51 for a new dentist patient-limited exam
• $74 for conducting a complete exam and diagnosis
• $97 for a complete series of radiographs
• $40 for polishing

Pet-owning Kelowna residents can expect to pay around $89 for a routine exam, a bit higher for an initial exam, and around $180 for an extended consultation regarding chronic illness.

Kelowna Childcare Costs

British Columbia's Affordable Child Care Benefit provides eligible Kelowna families with a monthly payment to help offset the cost of childcare. Eligibility factors include income, family size, and type of care needed. Families need to reapply for this program annually.

In 2018, British Columbia's Minister of State for Child Care announced that the province would begin taking steps toward providing universal childcare. The first steps included reducing fees, building more licensed childcare centres, and increasing the number of early learning centres. There are now more than 15,000 $10/day childcare centres across British Columbia.

For families seeking childcare outside of these centres, the average cost of daycare for one preschooler full-time in Kelowna is typically between $590 and $1,000 per month.

Long waitlists for daycare spots are common, so it may be worth looking into licensed home-based daycares or splitting the cost of a nanny with neighbours. The average cost of a nanny in Kelowna is around $20 per hour or $2,300 per month.

Kelowna Entertainment Costs

Kelowna's location on the shores of Okanagan Lake offers the perfect setting for year-round outdoor activities. Popular things to do include farm-to-table and winery tours, golfing, water sports, and horseback riding. The city also features beaches, parks, and hiking trails.

Downtown Kelowna is home to the city's cultural district, including art studios, galleries, museums, and theatres. It's also the spot for many restaurants as well as a casino.

The Kelowna Art Gallery offers a number of changing exhibitions of Canadian artists. Admission is $7 for adults, $6 for seniors and students, and free for children under 12.

Myra Canyon Bike Rentals offers seasonal guided tours of the Myra Canyon area. Prices start at $169 per person, with discounts for larger groups. The tours include bike rental, helmet, water, and transportation to and from the city to the trail.

Okanagan Stables offers year-round horseback riding with trail rides for adults and children. A one-hour introductory trail ride is $115 per rider, while a guided trail ride of up to two hours is $150.

The city is home to a multitude of restaurants, farm-to-table experiences, wineries, cideries, distilleries, breweries, and pubs. A 3-course, wine-paired dinner at the Home Block at CedarCreek Estate Winery is $60 per guest.

The global sales tax for British Columbia is 12% and includes the provincial sales tax (PST) of 7% and the goods and services tax (GST) of 5%.

Kelowna Salary

The median household income in Kelowna is $85,000 pre-tax, and $75,500 post-tax, with an average of $106,900 and $90,000, respectively.

The minimum wage across British Columbia is $17.50 per hour. There are seven personal income tax brackets, ranging from a tax rate of 5.06% for those making $45,654 or less to 20.5% for those making over $240,716 per year.

The unemployment rate in Kelowna is 5.7%, lower than the 6.5% national average.

Tourism has become a $2.4 billion per year industry in Kelowna's economy, and the service industry employs the most people in the area. Other key industries include agriculture, retail trade, forestry, manufacturing, and construction. Growth industries include viticulture and wine production, technology, film, aviation and healthcare.

Top employers in Kelowna include the City of Kelowna, University of British Columbia, Paladin Security Group, KF Aerospace, Kelowna International Airport, Interior Health, and Okanagan College.

So, How Expensive Is It to Live in Kelowna?

Kelowna offers a high quality of life, blending natural beauty, a strong sense of community, and an abundance of outdoor activities, making it an attractive place to live. While the cost of living may be higher than in some other parts of Canada, the city's vibrant lifestyle, excellent amenities, and stunning surroundings provide significant value for those who choose to call it home. By understanding the factors that contribute to living costs in Kelowna—such as housing, transportation, and everyday expenses—you can make an informed decision about whether this beautiful Okanagan city is the right fit for your next move.

If the opportunities in Kelowna excite you, contact the agents at KelownaHomes.ca at 250-999-9844 to get in touch with a local real estate agent who can help you find the perfect home in Kelowna today.