Mastering the 2025 Real Estate Landscape: A Guide for Canadian Agents
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‍The Canadian real estate market is entering a transformative phase in 2025, presenting both challenges and opportunities for agents. This seven-part series dives deep into the critical trends shaping the industry, from regional growth hotspots to the rise of PropTech and climate-conscious buyers. Backed by insights from the Emerging Trends in Real Estate® 2025 Report, each article provides actionable strategies to help you thrive in an evolving market. Whether you're a seasoned professional or new to the industry, this series equips you with the knowledge to navigate these dynamic changes. Stay tuned as we guide you through the year ahead.

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‍Part 1: Regional Growth Opportunities Amid Economic Uncertainty

Can economic uncertainty spark opportunity? While affordability challenges dominate Canada’s real estate market in 2025, regions like Calgary and Halifax are rewriting the narrative with growth stories that demand attention. National housing starts are projected to dip to 232,000 units—a sharp decline from the 271,000-unit peak in 2021. Yet, as high borrowing costs slow Toronto and Vancouver, regional markets are thriving, presenting agents with the chance to pivot their strategies.

From Calgary’s booming economy, fuelled by 87,000 newcomers since 2023, to Halifax’s 6% annual rental growth and diversifying industries, these hotspots are more than exceptions—they’re opportunities to redefine success. How will agents capitalize on these regional strengths? The answers lie in tailoring strategies to these emerging trends.

National Economic Challenges

Canada’s broader economic landscape remains under pressure as high borrowing costs and reduced investor demand slow activity in many sectors.

• Interest Rates Remain a Concern: Although rates are expected to decline gradually, they remain high compared to historical norms, limiting financing options for both buyers and developers. This has particularly affected major markets like Toronto and Vancouver, where high housing prices already constrain affordability.
• Inflation and Construction Costs: Elevated construction costs, fuelled by inflation and labour shortages, continue to impact the feasibility of new developments. For example, many developers in Toronto have paused condo projects, waiting for a more favourable economic climate.

Agent Strategy: Agents can guide clients by promoting regional advantages, like Calgary's affordability or Halifax’s rental market strength, while exploring creative solutions like resale properties and government incentives in higher-cost markets.

Regional Growth Opportunities

Despite national challenges, some regions are thriving, driven by population growth, affordability, and economic diversification.

Calgary: The Market to Watch

Calgary has emerged as a standout market in 2025, fuelled by robust economic and population growth.

• Population Growth: Calgary welcomed over 87,000 newcomers since 2023, fueled by interprovincial and international migration.
• Economic Expansion: Calgary’s GDP is expected to grow by 2.5% in 2025, up from 1.1% in 2024, supported by tech sector growth and energy sector resilience.
• Affordability Advantage: The average rent for a two-bedroom apartment in Calgary ($1,859/month) remains far more accessible compared to Vancouver ($2,580/month) or Toronto ($2,120/month).

Agent Strategy: Market Calgary as a high-potential destination for families relocating from high-cost regions and investors seeking stable returns. Highlight rental opportunities and the city’s affordability to clients looking to capitalize on growth.

Toronto: A Market in Transition

Toronto’s real estate market is experiencing a transitional period as high costs and slowdowns in new development reshape demand.

• Development Slowdowns: High construction costs have led developers to pause or cancel 24,335 condo units since 2022.
• Surging Inventory: Unsold condo inventory reached a record 25,893 units by mid-2024, reflecting reduced buyer activity.
• Office-to-Residential Conversions: Downtown office vacancies (17.6% in 2024) have spurred adaptive reuse projects, addressing housing shortages while revitalizing unused spaces.

Agent Strategy: Emphasize resale condos as cost-effective options for first-time buyers. Collaborate with investors interested in office-to-residential conversions, showcasing these projects as innovative solutions for housing demand.

Vancouver: Balancing Demand and Costs

Vancouver’s market remains under pressure from high prices and limited supply, but strong rental demand provides a silver lining.

• Skyrocketing Rental Demand: With rental vacancy rates below 1%, Vancouver remains the most competitive rental market, with average rents projected to hit $2,580/month in 2025.
• Transit-Oriented Growth: Policies mandating higher-density developments near transit hubs have created opportunities for multifamily housing.

Agent Strategy: Focus on income-generating properties for investors, highlighting the stability of Vancouver’s rental market. Promote transit-linked developments as eco-conscious options for buyers prioritizing sustainability.

Edmonton: Affordability and Stability

Edmonton’s market is gaining momentum, supported by its affordability and economic stability.

• Affordable Housing Market: Edmonton’s average house prices are roughly one-third of those in Toronto or Vancouver, attracting first-time buyers.
• Industrial Growth: As a critical hub for Western Canada’s energy sector, Edmonton’s industrial market supports demand for both residential and commercial properties.

Agent Strategy: Position Edmonton as a strong market for affordable housing and rental yields. Guide investors toward industrial properties or suburban areas with high growth potential.

Halifax: Emerging as a Tech Hub

‍Halifax is steadily growing, driven by international migration and its rising prominence as a tech and innovation hub.

• Population Growth: Halifax is seeing a steady influx of international migrants and students, supporting demand for rental housing.
• Economic Diversification: The city’s growing tech and financial sectors have created a stable job market, increasing homebuyer interest.
• Rental Opportunities: Vacancy rates remain low, and average rents have risen 6% annually over the last three years.

Agent Strategy: Promote Halifax as an investment hotspot for stable rental demand and long-term growth. Emphasize the city’s vibrant economy and affordable housing compared to larger metros.

Ottawa: Government Stability and Innovation

‍As the nation’s capital, Ottawa benefits from stable employment and an expanding suburban housing market.

• Job Security: Ottawa offers stable employment in government and tech sectors.
• Growing Suburban Demand: Families are moving to suburban areas like Kanata and Barrhaven for larger homes and green spaces.
• Multifamily Growth: Ottawa’s multifamily housing market is expanding, driven by strong demand for rental units.

Agent Strategy: Highlight Ottawa’s stable job market and expanding suburban housing options for families. Showcase multifamily housing as a reliable investment in a growing rental market.

Montreal: Stabilizing After a Slowdown

‍After a challenging 2023, Montreal’s real estate market is expected to stabilize, with GDP growth forecast to rebound to 2.4% in 2025.

• Mixed-Use Developments: Developers are repurposing retail properties into residential and wellness-focused projects, appealing to changing buyer priorities.
• Rental Opportunities: With fewer condos under construction, demand for rental properties is rising, creating opportunities for investors.

Agent Strategy: Focus on mixed-use developments and rental properties that offer long-term growth. Highlight the appeal of community-focused environments and stable income streams for investors.

Winnipeg: A Quiet but Promising Market

‍Winnipeg is experiencing strong population growth, driven by international immigration, and is expected to see a rebound in housing starts as mortgage rates stabilize in 2025.

• Revitalizing Downtown: Plans to convert large retail properties into mixed-use developments are transforming Winnipeg’s core.
• Suburban Growth: Suburban areas remain attractive for families seeking affordability and larger homes.

Agent Strategy: Market Winnipeg’s downtown revitalization efforts to investors seeking high-value opportunities. Showcase suburban properties as affordable, family-friendly options with strong growth potential.

Key Takeaway for Agents: Economic uncertainty requires adaptability, and regional growth disparities present opportunities to tailor strategies. From Calgary’s booming population to Vancouver’s rental demand, agents can leverage local market insights to guide clients effectively. By focusing on affordability in Edmonton, tech-driven growth in Halifax, and innovative solutions in Toronto, agents can position themselves as trusted advisors in a complex market.

Stay proactive, monitor regional trends, and align your services with local strengths to maximize success in 2025.

Next in our series, we’ll tackle one of the most pressing issues in Canadian real estate: housing affordability. Learn how agents can help clients overcome barriers and explore innovative solutions. Part 2: Overcoming Barriers: Creative Solutions for Canada’s Housing Affordability Crisis.

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