As Vancouver enters 2025, its housing market faces a critical moment. With sky-high home prices, shifting immigration policies, zoning reforms, and the lingering effects of global economic uncertainty, the city’s real estate market is under pressure. While Vancouver remains one of the most desirable cities in the world, its affordability crisis is driving tough choices for residents and policymakers alike.
A City of Dreams, but at What Cost?
Vancouver has long been synonymous with opportunity, natural beauty, and multicultural vibrancy. However, for many, the dream of owning a home here is increasingly out of reach. The average price of a detached home in Greater Vancouver now sits at $1.9 million, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC). With a price-to-income ratio of 14.8—one of the highest globally—Vancouver’s housing market has become a battleground between aspiration and reality.
Adding to the pressure, a recent survey by the Vancouver Economic Commission revealed that nearly 30% of residents are considering leaving the city due to unaffordable housing. Many young professionals and middle-income families are being priced out, with some relocating to more affordable Canadian cities like Calgary, Edmonton, and Toronto.
Zoning Reforms: A Solution in Progress
In a bid to tackle the housing shortage, the federal and provincial governments are pushing local municipalities to adopt zoning changes that allow for more construction. Vancouver has responded with proposals to densify neighborhoods through “gentle density” initiatives, aiming to build townhomes and low-rise apartments in traditionally single-family areas.
While this approach promises to increase housing supply, it has met resistance from some residents concerned about overcrowding, infrastructure strain, and environmental impacts. Still, experts agree that without significant zoning reform, the housing crisis will only deepen.
Foreign Investment and Local Buyers
Complicating matters is the federal government’s continued ban on non-Canadian buyers, enacted in 2023. The policy, intended to cool the housing market and prioritize local buyers, has altered Vancouver’s market dynamics. While it has created more opportunities for first-time buyers, it has also discouraged international developers, potentially slowing new housing projects.
Critics argue the policy doesn’t address the core issue of supply shortages, while others believe it offers a necessary reprieve for locals struggling to enter the market. The debate over foreign ownership is expected to persist in 2025, with potential revisions to the policy looming.
Vancouver vs. Global Cities: How Does It Compare?
Vancouver’s affordability crisis is not unique. Other global cities face similar challenges, but few match Vancouver’s extreme imbalance between housing costs and incomes.• London, UK: Price-to-income ratio of 21.0, with an average home price of £730,000 ($1.3 million).• Sydney, Australia: Ratio of 15.3, with home prices averaging A$1.3 million ($900,000).• New York City, USA: Ratio of 15.7, with an average home price of $1.1 million.• Hong Kong: The world’s least affordable city, with a staggering price-to-income ratio of 23.3.
While Vancouver compares favorably to Hong Kong or London in absolute terms, it lags behind emerging hubs like Calgary, where homes average $520,000, or Austin, Texas, at $450,000. These cities are increasingly drawing residents away from Vancouver with their lower housing costs, thriving job markets, and livable communities.
The Economic Outlook
Economically, Vancouver’s growth remains steady but modest, with real GDP in British Columbia projected to expand by 1.5% in 2025. A cooling labor market and cautious private-sector investment could dampen broader economic gains, though lower interest rates may provide some relief.
Global factors also loom large. Potential U.S. policy shifts, including tariffs, could impact Canadian exports and the housing market. Additionally, fluctuating immigration levels—Canada has lowered its intake targets for 2025 to 395,000—will likely affect demand for housing in cities like Vancouver.
Looking Ahead
As 2025 unfolds, Vancouver stands at a crossroads. The city’s housing crisis demands bold solutions, from increased zoning flexibility to more aggressive efforts to boost supply. Yet the deeper question remains: how does a city as desirable as Vancouver balance growth and livability?
Without meaningful change, the exodus of residents seeking affordability elsewhere could accelerate, reshaping Vancouver’s demographics and economy. Policymakers, developers, and community leaders will need to find common ground if the city hopes to remain both a global destination and a livable home for its residents.
For now, Vancouver’s real estate market is a story of contrasts—of breathtaking opportunity and daunting challenges.
Whether the city can turn the tide on affordability will define its legacy for decades to come.