Economic Indicators Q1 2025
Economic Indicators May 20, 2025
The Central Okanagan economy entered 2025 on solid footing, showing resilience and adaptability despite the imposition and temporary suspension of U.S tariffs. While some economic indicators highlight ongoing challenges, the broader picture tells a compelling story of the region’s steady economic growth.
Labour force and Employment
Employment in the region grew from 107,600 in Q1 2024 to 111,067 in Q1 2025 indicating a positive gain of over 3,400 jobs (Statistics Canada). This increase in employment reflects economic growth, business expansion and continued demand for labour, especially in health care and social assistance (451), retail trade (394) and accommodation and food services (380) (Vicinity Jobs – Job Postings by Industry). The increase in business expansion is noted by the 4.5 percent increase in the number of businesses in 2024. The labour force also expanded, from 114,267 to 118,800, pointing to increased participation and population growth of 2 percent to 251,723 in 2024 (Statistics Canada). However, this increase has nudged the unemployment rate slightly higher from 5.9% in Q1 2024 to 6.4%, in Q1 2025, though it remained below Canada’s rate of 6.6% and British Columbia’s rate of 6.0% (Statistics Canada). These figures highlight the dynamic nature of the Central Okanagan’s labour market. This suggests that while opportunities are growing, the rising labour force reinforces the importance of aligning talent with local employment needs.
Photo sourced from COEDC data portal
Housing Starts, Median New Home Price and Building Permits
Housing starts (including single homes, semi detached homes, rows and apartments) declined from 851 in Q1 2024 to 541 in Q1 2025, reflecting a more cautious approach from developers early in the year (Canadian Mortgage and Housing Corporation). An interesting trend to note, however, is that this decline aligns with a broader pattern of seasonal fluctuation rather than a long-term slowdown. For instance, in the past two years, housing starts surged in the second quarter (Canadian Mortgage and Housing Corporation). This positive trend suggests that while Q1 typically sees slower activity, the region continues to support strong residential development, positioning 2025 for a possibility of housing growth.
Median new home price in the Central Okanagan region experienced a slight dip from $1,597,500 in 2024 to $1,560,000 in 2025 (Canadian Mortgage and Housing Corporation). In comparison Vancouver recorded a higher median new home price at $2,380,000, followed by Toronto at $1,475,000, Victoria at $1,400,000, and Calgary at $755,000.
The median year to date housing price of (number of units sold including both new and resale) single/semi detached residential housing in the Central Okanagan for Q1 2025 was $1,025,000 (Association of Interior realtors)
Despite the decline in housing starts, total building permit values increased from $65,997,893 in Q1 2024 to $68,582,976 in Q1 2025, signaling continued investment in the region (COEDC Data Portal).
Photo sourced from CMHC
Airport Passengers
One of the Central Okanagan’s economic strengths is its connectivity through Kelowna International Airport (YLW). Passenger traffic rose 10.4% in Q1 2025, growing from 178,790 passengers in Q1 2024 to 197,362 in Q1 2025. An interesting trend to note is the expansion of direct flight connections at YLW, which likely contributed to the increased passenger traffic. Notably, Alaska Airlines launched a new non-stop, seasonal service to Los Angeles on December 19, 2024, providing daily flights that enhance travel options for both leisure and business passengers (Kelowna International Airport). Additionally, Alaska Airlines reinstated year-round service to Seattle, and WestJet introduced a new year-round service connecting YLW to Seattle-Tacoma International Airport (SEA) that began in January 2025, further improving connectivity to the Pacific Northwest and beyond (Kelowna International Airport). U.S./Canada trade relations have begun to impact these flights, and WestJet’s service to Seattle was reduced to three times per week in April 2025 as part of a broader trend of airlines reducing transborder flights.
Kelowna International Airport is undertaking a multi-year expansion to support the needs of our growing population. The plan entails the airport’s largest terminal expansion to date, fully serviced lots for light industrial and commercial business, new parking options, safety and sustainability upgrades, and much more (Kelowna International Airport). These developments not only facilitate more tourism and business travel but also position the Central Okanagan as a more accessible and attractive destination for tourism, business events and conferences, business travel, and investments.
Photo sourced from Kelowna International Airport
Business Counts
The total number of active businesses grew from 34,365 in 2023 to 35,913 in 2024 (COEDC Data Portal). This indicates overall growth in the number of businesses and signals that existing enterprises are sustaining and expanding despite global uncertainties. Job postings also saw an increase, from 5,830 in Q1 2024 to 6,033 in Q1 2025, demonstrating ongoing hiring demand (Vicinity Jobs). The top three occupations being sales and service (2,078), business, finance and admin (938) and trades, transport and equipment operators (847) (Vicinity Jobs).
Photo sourced from COEDC data portal
Despite macroeconomic uncertainties, the Central Okanagan continues to show signs of steady economic growth and industry resilience. Growth in employment, rising permit values, and expanding business counts speak to the region’s overall economic health.
To explore more detailed data and insights, visit our Data Portal.
