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Rest of BC | Kamloops

Kamloops: Cheap Land, Limited Demand, and a Shrinking Student Base

Kamloops has some of the cheapest residential land in BC. The city amended its zoning bylaw for SSMUH in June 2024. TRU puts 8,750 students nearby. Vacancy is tight at 1.2%. On the surface, that sounds promising. But TRU enrollment dropped 9% in one year. The resource economy creates boom-bust cycles. Construction trades are thin. Rents average $1,489/month — not enough spread against build costs for most sites. This is a market to watch, not a market to enter.

Key Takeaways

  • ✓Land at $400K-$650K is among BC's cheapest. But low land cost reflects low demand, not hidden opportunity.
  • ✓TRU enrollment fell 9% to 8,750 students in fall 2025. Near-campus rents are already softening $25-$50/month.
  • ✓Vacancy at 1.2% is tight, but the absolute market is small. One new building can move the rate.
  • ✓Most lots cap at 4 units. Very few qualifying frequent transit stops mean the 6-unit path is rare.

Policy Edge vs Economic Reality

Policy Edge

Low

Kamloops amended its Zoning Bylaw in June 2024 for Bill 44 compliance. Standard provincial minimums. No rental bonus, no expedited permitting, no municipal incentive. The rules work but they do not help you.

Economic Viability

Low

Land at $400K-$650K is cheap. But rents average $1,489/month. The vacancy rate is 1.2% — tight — but that tightness reflects a small market, not deep demand. TRU enrollment is declining. Construction trades are thin. The economics are marginal at best.

The Comparison Table

Rule Standard Lot Transit-Adjacent Why It Matters
Max units 4 units (lots > 280 m²) Up to 6 near frequent transit Zoning Bylaw No. 55 amended June 2024 to comply with Bill 44. Standard provincial thresholds. Kamloops has no municipal bonus layer.
Tenure Strata or rental; owner’s choice Same — no rental-only uplift No secured-rental bonus. No municipal rental incentive of any kind.
Parking Reduced minimums under SSMUH amendments Further reduced near frequent transit The June 2024 zoning amendments reduced parking requirements for traditional multi-unit forms. Helpful but not transformative.
Height 3 storeys typical Same for SSMUH Standard SSMUH envelope. No special provisions.
CMHC MLI Select fit No — 4 units is below the 5-unit minimum Possible at 6 units, but qualifying sites are rare Kamloops has limited frequent transit. Very few lots reach the 6-unit path.
Vacancy rate 1.2% citywide (October 2025 CMHC) Slightly higher near TRU campus Extremely tight. Despite 8,750 TRU students (down 9% from 2024), vacancy remains well below healthy levels. International enrollment decline has softened rents near campus.
Land basis $400K–$650K typical for detached lots Same Among the cheapest in BC. But low land cost reflects low demand, not hidden value.
Rental market Avg rent ~$1,489/mo (2025 CMHC) Same; declining near TRU Rents climbed from $1,379 to $1,489 year-over-year. But near-campus units are seeing $25–$50/month reductions as international enrollment falls.

Based on Kamloops Zoning Bylaw No. 55 as amended June 2024. Verify against the current bylaw at letstalk.kamloops.ca/BylawUpdates.

What Makes Kamloops Different

TRU Student Corridor

Thompson Rivers University had 8,750 students in fall 2025, down 9% from 9,638 in 2024. International enrollment is falling due to federal immigration policy changes. Near-campus rents have dropped $25-$50/month as demand softens. The student demand base is real but shrinking.

Resource Economy Volatility

Kamloops depends on forestry, mining, and agriculture. These industries create boom-bust rental demand cycles. When a mill closes or a mine reduces shifts, the tenant pool contracts. Your pro forma needs to survive the down cycle, not just the up cycle.

Extremely Tight Vacancy

At 1.2%, Kamloops has one of the tightest rental markets in BC. But tight vacancy in a small market means something different than in Vancouver. The absolute number of rental units is small. One new 50-unit building can move the rate. Do not conflate tightness with depth.

Thin Construction Trades

Kamloops has fewer general contractors, framers, and subtrades than Metro Vancouver or the Okanagan. Projects can stall due to trade availability. Timelines are less predictable. Get trade commitments before you commit to a construction schedule.

Best For

  • ✓ Owners who already hold a lot near TRU and want to densify to 4 units with a student rental strategy.
  • ✓ Very patient investors who can buy land at the bottom of the cycle and wait for TRU enrollment to recover.
  • ✓ Projects where the land is free or near-free (inherited, family-held) and the only question is build cost vs rent.

Usually Fails When

  • ✕ You are buying land at asking price specifically for a BTR hold. The rent-to-cost spread is too thin at current Kamloops rents.
  • ✕ The project depends on the 6-unit path. Very few Kamloops lots qualify for frequent transit proximity.
  • ✕ Your construction timeline depends on trade availability you have not confirmed. Kamloops trades are thin and unpredictable.

What To Verify Before Spending Money

  • → Current TRU enrollment trends and whether international student numbers are stabilizing.
  • → Trade availability and realistic construction timelines from local (not Metro Vancouver) contractors.
  • → Whether the lot actually reaches 4 units under the amended Zoning Bylaw No. 55 — some lots are exempt.

Frequently Asked Questions

Is Kamloops a BTR market? +
Not really. Not yet. The land is cheap enough to watch, but the combination of declining TRU enrollment, resource economy volatility, and thin construction trades makes execution harder than the land price suggests. If you already own a lot near TRU, a 4-unit project may pencil. But buying land specifically for BTR in Kamloops requires a higher risk tolerance than most investors should have.
How does the 1.2% vacancy rate affect the analysis? +
Tight vacancy sounds good for landlords. But in Kamloops it reflects limited supply in a small market, not deep demand competing for units. The absolute tenant pool is small. And rising rents ($1,379 to $1,489 year-over-year) are pushing against the ceiling of what Kamloops tenants can pay. Vacancy is tight, but rent growth is capped by local incomes.
What about the TRU student market? +
TRU enrollment dropped 9% from fall 2024 to fall 2025, from 9,638 to 8,750. International student declines drove most of this. Rents near campus have already softened. If you are underwriting student demand, use the current 8,750 figure, not the pre-decline peak.
Can I realistically build 6 units in Kamloops? +
The 6-unit path requires a lot greater than 280 m² within 400 m of qualifying frequent transit. Kamloops has limited frequent bus service. Very few lots meet this test. Most projects will cap at 4 units, which is below CMHC MLI Select thresholds.
When might Kamloops become a viable BTR market? +
When TRU enrollment stabilizes or grows, when the construction trade pool deepens, and when rents rise enough to create a meaningful spread against build costs. None of these are happening right now. Watch the market, but do not force a deal.

Official Kamloops Sources

City of Kamloops: Bylaw Updates for Housing (SSMUH)
https://letstalk.kamloops.ca/BylawUpdates
City of Kamloops: Zoning & Property Information
https://www.kamloops.ca/ZoningBylaw
City of Kamloops: Development Cost Charges Bylaw
https://www.kamloops.ca/sites/default/files/docs/homes-businesses/development_cost_charges_bylaw_no._5-1-2678.pdf

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