Is Academy Way a Good Investment?

Academy Way is one of the most commonly asked-about investment destinations in Kelowna real estate, and for good reason. The combination of a captive student tenant base, UBCO's ongoing growth, and a concentrated supply of purpose-built condos creates conditions that don't exist anywhere else in the Okanagan.

Whether it's actually a good investment depends on what you're buying, what you paid, and what your exit strategy looks like. Here's an honest breakdown.

The Core Investment Case

UBCO's enrolment has grown steadily since the campus opened in 2005 and now sits at approximately 12,000 students. The university has announced continued expansion — new faculties, new buildings, and graduate program growth — which puts sustained upward pressure on housing demand in the immediate vicinity.

Academy Way sits within walking distance of campus. That proximity is the single most important factor in the investment thesis. Students and staff will always need housing close to UBCO, and the supply of walkable units is finite. The buildings on Academy Way represent the most concentrated walkable inventory in the city.

Rental Demand and Vacancy

Vacancy at Academy Way has historically been very low — single-digit percentages even during periods when the broader Kelowna rental market softened. The September rental cycle (driven by the academic year) means units leased to students fill predictably each year.

The tenant profile skews toward upper-year students, graduate students, and university staff — demographics that tend to be more stable than the first-year student population. Many investors in the complex report consistent tenancies of two to three years.

Short-term rental (Airbnb/VRBO) has been a secondary income strategy for some units, though provincial and municipal regulations have become more restrictive. Investors relying on STR income should verify current bylaw status before purchasing.

What the Numbers Look Like

Cap rates at Academy Way are compressed relative to older Kelowna rental stock — you're paying a premium for the location and tenant quality. Studio and one-bedroom units in the $350,000–$450,000 range typically gross $1,500–$1,900/month in long-term rent, depending on the building, unit quality, and current market. Net yields after strata fees, property tax, and management tend to land in the 3.5–5% range.

That's not exceptional on a yield basis. The investment case is more compelling when you factor in appreciation — Academy Way has seen consistent price growth since the earliest buildings were completed, and continued UBCO expansion supports that trajectory.

Risks to Understand

• Strata fees vary significantly by building. Older buildings can have higher fees and deferred maintenance. Always review the depreciation report and contingency reserve fund before making an offer.
• Rental bylaws. Some buildings restrict rentals or have caps on the percentage of units that can be rented. Confirm rental permissibility in the specific strata before purchasing as an investment.
• Short-term rental regulations. Provincial rules require STR operators to be the principal residence — enforcement has increased. Don't model STR income without confirming current permissibility.
• Building age. The earlier Academy Way buildings are now 15+ years old. Building envelope condition and the state of the reserve fund matter more as buildings age.
• Interest rate sensitivity. At compressed cap rates, carrying costs are material. Model your returns at different rate scenarios before committing.

Which Buyer Profile Does This Suit?

Academy Way works best for investors who:

• Have a 7–10 year horizon and are comfortable with modest but consistent yield plus appreciation
• Want a low-management investment (tenant base is self-selecting, demand is structural)
• Can absorb the carrying costs during any vacancy period without financial stress
• Are buying in a newer building (or one with a healthy reserve fund) to minimise strata assessment risk

It's less suited to investors who need strong cash flow from day one, or who are betting on short-term rental income as the primary return driver.