The City of Penticton is highlighting significant progress on housing since 2023, reflecting a shift from a traditionally regulatory role to becoming an active partner and enabler in delivering new homes.
“Early in Council’s term, we recognized the need to focus on housing,” says Mayor Julius Bloomfield. “Council launched the Official Community Plan Housing Task Force in early 2023 and continued modernizing our bylaws, processes and overall role in supporting new housing in Penticton, aimed at meeting a wide range of local needs.”
Over the current Council term, the City has overhauled housing policies and regulations, streamlined development approvals and supported an increase in housing supply. Council has taken a strategic approach to the use of City owned land for housing, while strengthening partnerships with housing providers, the development industry and senior levels of government.
“Over the last few years, the City has made substantial changes to how we approach housing,” said Steven Collyer, the City of Penticton’s housing and policy initiatives manager. “By updating regulations, streamlining approvals and working closely with builders and non profit housing providers, we’re creating the conditions needed to increase housing supply and make progress on affordability.”
From regulator to partner
The City has deliberately moved beyond a regulation only approach, recognizing that addressing housing supply, affordability and homelessness require coordinated action with local organizations, alongside provincial and federal partners.
Major policy reforms and faster approvals
Since 2023, Council has implemented wide ranging changes to modernize housing policy and regulations. Of the 18 recommendations from the Official Community Plan Housing Task Force, 15 have now been implemented.
The City has also adapted recent provincial housing legislation to Penticton’s local context in order to support increased housing supply, while streamlining development approval processes to reduce timelines and improve certainty for applicants.
Design guidelines have been simplified, additional minor variance decisions have been delegated to staff, and development processes updated to better support infill, rental and mixed use housing.
Increasing housing supply
These changes are translating into tangible housing outcomes. Between 2023 and 2025, construction began on approximately 950 new homes — an average of about 316 homes per year.
This level of activity aligns with the needs identified in the City’s most recent housing needs reports and represents strong early progress toward meeting Penticton’s provincially mandated housing targets. Most new developments are multifamily apartments, providing housing desirable for many young professionals, workers, and seniors. These projects represent major investments in key areas of Penticton, including the downtown, North Gateway, and near Okanagan College.
Strategic use of City owned land
The City is taking a more active role in advancing housing by strategically using City owned land, particularly for below market and non profit housing projects.
Several sites are being prepared or positioned for residential development, including a 60-unit apartment on City-owned land at 995 Eckhardt Ave W funded through the BC Builds program and geared towards workers. The City continues to pursue partnerships with provincial and federal governments to secure funding and advance other projects.
Partnerships are key
Partnerships remain central to addressing housing supply and affordability. The City continues to work with the development industry to identify opportunities for ongoing process improvements, while collaborating with non profit housing providers through initiatives such as the Social Housing and Infrastructure Plan and pre development funding for new projects.
The City also continues to advocate to provincial and federal governments for increased investment in housing in Penticton, recognizing that senior government support is critical to meeting local needs.
Looking ahead
Current economic conditions have made it challenging for some private developments to move forward to construction. Continued collaboration and investment from all levels of government will be required to deliver non market housing, support affordability and provide the infrastructure needed to accommodate growth.
While significant progress has been made, the City emphasizes that municipal action alone cannot address the full scale of the housing challenges facing the community.
Key facts
• Approximately 950 new homes began construction between 2023 and 2025.
• 15 of 18 Official Community Plan Housing Task Force recommendations have been implemented.
• Housing supply is trending toward meeting provincially mandated targets.
• Penticton’s rental vacancy rate increased from 1.2 per cent in 2024 to 2.6 per cent in 2025 — the first time it has exceeded two per cent since 2013.