West Kelowna’s construction activity has sharply dropped this year. In the second quarter of 2025, the total value of building permits reached just $18 million. This is only 15 percent of the $123 million recorded in the same period last year. It is also far below the five-year average of $63 million for this quarter.
From April to June, the city issued 149 building permits. This number is lower than the 183 permits in Q2 2024 and well below the five-year average of 205 permits. So far in 2025, total building permit values stand at $47 million. Last year at this time, the total was $148 million.
Along with fewer permits, the number of business licenses issued has dropped. The city issued 99 business licenses in the second quarter of 2025, compared to 174 licenses in the same period last year.
These figures point to a quieter building and development sector in West Kelowna than in recent years. The slowdown means fewer construction workers are employed, fewer homes are being built, and city tax revenue will be lower than expected. This is especially concerning amid the province’s ongoing housing shortage.
Economic experts say the cause is partly linked to British Columbia’s rising public debt and budget problems. The province’s deficit is projected to reach nearly $11 billion this year, with some estimates as high as $16 billion. Since David Eby became premier in 2022, the province’s total debt has increased by $105 billion, now standing at $166 billion.
Debt servicing has become a major issue. It is now the third largest expense in the provincial budget, after health care and education. This means a large portion of government revenue goes to paying interest on debt rather than funding programs or infrastructure.
Jock Finlayson, chief economist at the Independent Contractors and Business Association, strongly criticizes the provincial government’s handling of finances. He says the current administration has “taken a wrecking ball” to public finances in British Columbia.
At the same time, the City of West Kelowna has been working to fill staff vacancies. Between April and June, 34 new employees joined city staff, bringing the total to 375 workers.
The Royal Canadian Mounted Police (RCMP) in West Kelowna have also seen more activity this year. Calls for service rose to 2,246 in the first half of 2025, up from 1,967 in the same period last year.
The slowdown in construction combined with growing provincial debt casts a shadow over West Kelowna’s economic outlook. With fewer projects moving forward, the city faces challenges in meeting housing demands and maintaining tax revenues.
