The Vancouver real estate market is undergoing a major shift. Just a few years ago, many Vancouver developers moved away from condo sales and into rental projects due to strong demand and rising rents. However, the landscape has changed, and developers are now reconsidering their rental strategies.
Why Are Rents Falling in Greater Vancouver?
Several factors have led to a decline in rental demand across Greater Vancouver housing:
Increased Supply: More purpose-built rental buildings are hitting the market, adding thousands of new units.
Provincial Short-Term Rental Rules: Stricter Airbnb regulations have freed up long-term rental units, increasing availability.
Federal Cap on International Students: Fewer incoming students means less demand for rental apartments.
High Cost of Living: Many residents are leaving Metro Vancouver for more affordable cities.
As a result, landlords and developers are now offering incentives like free rent months and pet-friendly policies to attract tenants.
The Impact of Senakw Towers on the Vancouver Rental Market
One of the biggest concerns for Vancouver developers is the Senakw Towers project. This massive development will add 1,400 rental units in Kitsilano by the end of 2024, with thousands more in later phases.
Developers fear this sudden influx of rental units will further drive rents down, making it harder for existing projects to lease up. With top-of-market rents already declining from $7 per square foot to under $6, landlords and investors are feeling the squeeze.
What Does This Mean for the Future of Vancouver Housing?
For renters, falling prices and better incentives are a welcome change after years of record-high rents. However, for Vancouver developers, this downturn presents financial risks, especially for those who paid high land costs expecting strong rental returns.
Experts predict that if the rental market remains weak, land prices could eventually adjust downward. But Vancouver’s unique market—where demand for single-family homes keeps land prices high—makes this uncertain.
Final Thoughts: A Temporary Dip or a Long-Term Shift?
The Greater Vancouver housing market is in transition. While lower rents provide relief for tenants, developers are now reassessing the profitability of rental projects. Some may delay or cancel future developments, which could eventually lead to another housing supply crunch down the road.
Will the market stabilize, or is this the start of a bigger correction in Vancouver real estate? Only time will tell.
The Bank of Canada has officially lowered its benchmark interest rate to 2.75%, marking its seventh consecutive cut. While this move is expected to provide some relief for homeowners renewing their mortgages, experts remain skeptical about whether it will truly stimulate homebuying activity in today’s sluggish housing market.
Lower Rates, But Are Buyers Ready?
Historically, lower interest rates have encouraged borrowing and real estate activity. However, experts argue that this latest cut may have limited impact on the market. Mortgage rates are still more than double what they were in 2020 and 2021, when borrowers locked in historically low rates below 2%. Many of those homeowners are now facing significantly higher costs as they renew their mortgages, adding strain to household budgets.
“The impact will be limited,” says Rebecca Oakes, Vice President of Data and Analytics at Equifax Canada. “Many borrowers who locked in at historically low rates are still renewing at significantly higher interest costs, which continues to strain household budgets.”
Uncertainty Keeping Buyers on the Sidelines
Despite the lower rates, homebuyers remain hesitant due to broader economic uncertainty. The ongoing global trade war and rising costs of goods have created a “wait-and-see” approach among both buyers and sellers.
“There is a lot of uncertainty,” explains Samantha Villiard, a regional vice president with Re/Max Canada. “That has prompted households to take a cautious approach.”
Fellow Re/Max VP Kingsley Ma agrees, stating that many would-be homebuyers and sellers are choosing to wait for the economy to stabilize before making any major financial decisions. He adds that a small 25-basis-point rate cut is unlikely to be a deciding factor for buyers.
“If you lose your job, you won’t be able to pay your mortgage—so it doesn’t matter if interest rates are lower,” Ma points out.
Mortgage Renewals & Rising Delinquencies
For homeowners who have renewed their mortgages in the past year, affordability remains a challenge. According to Equifax, Ontario’s mortgage delinquency rate—the percentage of homeowners missing mortgage payments for at least 90 days—nearly doubled in the final quarter of last year, reaching 0.22%. While lower rates may slow the rate of delinquencies, they won’t erase the financial pressures that have built up over time.
Will Fixed-Rate Mortgages Drop?
While variable-rate mortgages tend to move in sync with the Bank of Canada’s benchmark rate, fixed-rate mortgages are tied to government bond yields. Following the latest rate cut, bond yields actually increased, which could limit how much fixed mortgage rates decline.
“This is a key reason why I don’t believe mortgage rates will come down materially enough to eliminate renewal risks,” says Carl Gomez, Chief Economist at CoStar Group. “There was a promise that lower interest rates would reduce mortgage rates—but fixed rates haven’t dropped significantly.”
Housing Affordability Still a Major Challenge
Even with lower borrowing costs, home prices remain out of reach for many Canadians. The average home price in Canada sat at $709,200 in January 2025, according to the Canadian Real Estate Association (CREA). While prices are slightly lower than their peak in 2022, they are still 33% higher than in early 2020, when the Bank of Canada first slashed interest rates to nearly zero.
Gomez stresses that affordability remains a huge barrier, with high mortgage rates making homeownership less accessible for first-time buyers.
What’s Next for the Housing Market?
The latest rate cut is good news for existing homeowners looking to renew their mortgages at slightly lower rates. However, the broader housing market remains in a holding pattern, with economic uncertainty and affordability challenges keeping many buyers and sellers on the sidelines.
Will further rate cuts in 2025 make a bigger impact? That remains to be seen. For now, the housing market is far from a full recovery, and homebuyers will need more than just lower interest rates to regain confidence.
Bank of Canada Lowers Interest Rate Amid U.S. Trade War Concerns
The Bank of Canada has reduced its overnight lending rate by 25 basis points to 2.75% as ongoing trade tensions with the U.S. begin to impact the Canadian economy. The announcement was made on Wednesday, with Governor Tiff Macklem citing economic uncertainty as a key factor behind the decision.
Economic Growth Faces New Challenges
Macklem explained that Canada started the year with strong GDP growth and inflation within the central bank’s 2% target. However, the uncertainty surrounding the U.S.-Canada trade relationship has led to reduced business investments, hiring slowdowns, and weakened consumer confidence. Manufacturing businesses, in particular, have adjusted their sales forecasts downward in response to the volatility.
Against this backdrop, the Bank of Canada opted for a quarter-point rate cut, though Macklem noted that a surge in exports ahead of anticipated tariffs might temporarily offset the slowdown.
“While it is still too early to see the full effects of new tariffs on economic activity, our surveys indicate that the mere threat of additional tariffs is already impacting business and consumer behavior,” Macklem said in a press conference.
Rate Cuts Continue Amid Growing Uncertainty
This latest rate cut marks the seventh consecutive reduction since June 2024. Economists suggest that the central bank is taking precautionary measures to cushion the economy against potential shocks from higher tariffs.
“The Bank of Canada is clearly concerned that an economy which was otherwise stable now requires rate cuts to mitigate the impact of rising trade tensions,” said Avery Shenfeld, chief economist at CIBC.
Inflation Pressures and Consumer Costs
Internal research from the central bank suggests that Canadian businesses plan to raise prices to counteract the effects of tariffs. Macklem acknowledged that while reduced consumer and business spending typically lowers inflation, increased costs from trade disputes could have the opposite effect.
“We are now facing a new crisis. The severity of the economic impact depends on the scope and duration of U.S. tariffs, but the uncertainty alone is already causing damage,” Macklem warned.
While the Bank of Canada cannot prevent the financial strain from tariffs, it can use interest rates to manage inflationary pressures. The bank’s preferred measures of core inflation remain above 2%, driven largely by rising housing costs.
The Impact on Canadian Inflation
Macklem outlined several ways tariffs could influence inflation in Canada. The weaker Canadian dollar makes imports more expensive, retaliatory tariffs add costs, and businesses are forced to seek new suppliers and markets, all of which contribute to rising prices.
“Ultimately, these costs get passed on to consumers,” Macklem explained. “Our goal is to ensure any inflationary impact remains temporary.”
Recession Fears and Future Outlook
Although Macklem avoided using the word “recession” in his remarks, some economists believe a downturn is possible if trade tensions persist. Deputy Governor Carolyn Rogers stated that while growth prospects look uncertain, the central bank does not yet have a formal recession forecast.
Looking ahead, the Bank of Canada’s next interest rate meeting is scheduled for April 16, when it will release its quarterly monetary policy report. BMO chief economist Douglas Porter predicts that ongoing trade disputes will likely keep the Bank in an easing stance, with additional rate cuts expected in the coming months.
“Our assumption is that Canada will face extended trade-related challenges, leading the Bank to cut rates further,” Porter noted. He anticipates three additional 25 basis point cuts, which would bring the overnight lending rate down to 2%.
As the situation unfolds, Canadian businesses and consumers will need to navigate an increasingly uncertain economic landscape, with the Bank of Canada closely monitoring developments and adjusting policy as needed.
Bank of Canada cuts interest rate to 2.75% as country faces ‘new crisis’ from tariffs
As we step into March 2025, Metro Vancouver’s real estate market is showing signs of balance after a surge in new listings earlier in the year. If you’re a buyer or seller, understanding these latest trends will help you make informed decisions.
A Shift Toward Market Balance
Following a 46% increase in new listings in January, February brought a more moderate rise in newly listed properties. This shift has helped keep the market conditions balanced, offering buyers a broader selection of homes while maintaining stability for sellers.
According to the Greater Vancouver REALTORS® (GVR), Metro Vancouver recorded 1,827 residential sales in February 2025—an 11.7% decrease from the same time last year. This number also sits 28.9% below the 10-year seasonal average of 2,571 sales. While sales activity slowed, the inventory of homes available has increased significantly.
Key Market Stats for February 2025
New Listings: 5,057 properties (+10.9% YoY, 11.6% above the 10-year average)
Total Active Listings: 12,744 properties (+32.3% YoY, 36.4% above the 10-year average)
Sales-to-Active Listings Ratio: 14.8% overall
Detached homes: 10.7%
Townhomes: 18.5%
Condos: 16.8%
With more inventory on the market, buyers have greater choice, reducing the urgency to make quick decisions. However, the market remains stable, with neither strong upward nor downward pressure on prices.
Home Prices Hold Steady
Despite the shifting market conditions, prices have remained relatively flat. The MLS® Home Price Index composite benchmark price for Metro Vancouver is currently $1,169,100, reflecting a 1.1% decrease compared to February 2024 and a slight 0.3% decrease from January 2025.
Here’s a breakdown of benchmark prices by property type:
Detached Homes: $2,006,100 (+1.8% YoY, unchanged from January 2025)
Condos: $747,500 (-2.8% YoY, -0.1% from January 2025)
Townhomes: $1,087,100 (-1.2% YoY, -1.7% from January 2025)
What’s Next for Vancouver Real Estate?
With the Bank of Canada potentially lowering interest rates in mid-March, borrowing conditions may improve for buyers. This could drive more activity in the spring market, especially with the largest selection of homes available since pre-pandemic times.
According to GVR’s Director of Economics, Andrew Lis, the market’s balanced conditions suggest a flatter price trajectory in the short term. However, as spring approaches, it will be interesting to see whether buyers take advantage of these favorable conditions and if sellers adjust their strategies accordingly.
Final Thoughts
For buyers, the increased inventory provides more options and negotiating power. For sellers, accurate pricing and strategic marketing will be key to securing a successful sale in this balanced market.
If you’re considering buying or selling in Metro Vancouver, staying up-to-date with the latest trends is crucial. Reach out today for expert advice tailored to your needs!
The Canadian housing market has been a hot topic for years, with skyrocketing prices making it increasingly difficult for young buyers to enter the market. But what if an economic shift—such as a trade war—could change that? While it may sound counterintuitive, there are several ways a U.S.-Canada trade war could impact housing affordability, and not all of them are bad for first-time buyers.
The Three Key Factors of Housing Affordability
Housing affordability is influenced by three major factors: mortgage rates, home prices, and income levels. If a trade war triggers economic uncertainty, these factors could shift in ways that make homeownership more attainable for some buyers.
1. Mortgage Rates Could Drop Further
The anticipation of economic instability has already put downward pressure on mortgage rates. If a full-fledged trade war erupts, the Bank of Canada may cut interest rates further to stimulate the economy. Lower mortgage rates mean cheaper borrowing costs, making it easier for buyers to afford a home.
2. Home Prices Could Stagnate or Decline
Historically, economic downturns have led to stagnant or falling home prices. This could be bad news for baby boomers looking to downsize, but for young buyers struggling to afford a home, it might be the break they’ve been waiting for. If prices level off or decline while mortgage rates remain low, homeownership could finally become a reality for many first-time buyers.
3. Wage Growth and Economic Stability
One potential downside is that a trade war could slow down wage growth and increase job uncertainty. While mortgage rates and home prices may become more favorable, a weak job market could make it harder for some to qualify for loans or feel confident in making such a major financial decision. However, for those with stable employment, this could be a once-in-a-lifetime opportunity to buy in a softer market.
The Big Question: Is This an Opportunity?
For young buyers, a trade war could create a rare window to enter the housing market before prices climb again. While economic instability isn’t ideal, those with secure jobs and long-term plans may find that lower prices and better mortgage rates outweigh the risks.
What Should You Do?
If you’re considering buying a home in Vancouver or anywhere in Canada, it’s crucial to stay informed and work with an experienced real estate professional. Timing the market can be tricky, but understanding these economic trends can help you make the right decision.
💬 What do you think? Could a trade war actually help young buyers? Share your thoughts in the comments below or reach out for expert real estate advice!
For personalized real estate guidance in Vancouver, contact me today!
British Columbia’s housing market is set for a year of mixed results in 2025. While resale activity is expected to rebound after years of slowdown, the rental market will likely experience softening with higher vacancy rates. Meanwhile, new home construction is projected to see only marginal growth as demand for presale units gradually returns.
Regional Overview: How Population Growth is Shaping the Market
Slower population growth in British Columbia is expected to have a significant impact on housing demand. Economic growth is anticipated to be sluggish in early 2025, with employment conditions weakening until mid-year before rebounding in 2026 and 2027. While wages and disposable income have seen strong growth in recent years, they are expected to remain flat in 2025, affecting affordability and purchasing power.
Additionally, changes to Canada’s immigration policy will influence housing demand. Metro Vancouver remains a top destination for international migrants, but overall net migration is expected to slow. Meanwhile, high housing costs will continue driving some B.C. residents to seek more affordable options in areas like Chilliwack, Victoria, and Kelowna. Interprovincial migration trends suggest a growing number of British Columbians moving to the Prairie provinces in search of lower-cost housing.
Resale Market: A Rebound on the Horizon
After two years of declining sales, Vancouver and Victoria’s resale markets are poised for a turnaround in 2025. Lower mortgage rates are expected to expand borrowing capacity, allowing more buyers to enter the market. While sales in 2025 are projected to increase, they will likely remain below the highs seen in 2021.
Recent reductions in interest rates began to impact resale activity in late 2024, with stronger sales compared to the previous year. This trend is expected to continue, leading to increased demand and upward pressure on home prices. However, the effects of slowing immigration will be more pronounced in the rental market than in resale activity, with the biggest impact concentrated in Metro Vancouver.
Home Prices: A Year of Growth Followed by Stabilization
Increased sales activity will help absorb existing inventory in the form of unsold new homes and active resale listings. The average time homes spend on the market is expected to decline slightly after increasing over the past two years. This will contribute to a more competitive market, leading to price growth primarily in 2025, followed by marginal increases in the years beyond.
Higher borrowing capacity—enabled by wage growth and low mortgage rates—will support home price appreciation. Additionally, investor activity is expected to pick up, particularly in the presale market, as expectations for price growth return.
New Home Construction: Modest Growth Expected
Housing starts in Vancouver and Victoria are projected to increase slightly in 2025 after a sluggish 2024. The growth will be led by multi-unit developments, particularly in the rental sector, driven by government incentives and historically tight rental conditions. However, as more rental supply enters the market, developers may become cautious due to rising vacancy rates and slowing rent growth, which could limit new rental projects in the coming years.
Condominium construction remains challenging due to pricing pressures and weaker presale demand. Many projects have been delayed due to high unabsorbed inventory, with developers taking out additional financing to manage existing units. While lower mortgage rates and increased resale activity may help revive stalled projects, demand for high-priced presale units remains uncertain, particularly in Vancouver’s core.
Single-detached home construction is also expected to recover in 2025, supported by lower interest rates. However, long-term growth in this segment will be constrained by land shortages and high development costs.
Rental Market: Higher Vacancy Rates and Slower Rent Growth
The rental market in British Columbia is expected to see a significant increase in vacancy rates after years of historically low levels. This trend began in 2024 and is projected to continue as a record number of rental units enter the market. Many of these units will be priced at higher rents, potentially slowing absorption rates.
Lower population growth, particularly among new immigrants who typically enter the rental market first, will further dampen demand. While rental prices will continue rising due to the introduction of high-priced units, asking rents may face downward pressure as landlords compete for tenants. This could lead to improved affordability and increased tenant turnover as the gap between occupied unit rents and new rental prices narrows.
Key Takeaways for 2025
Resale Market: Sales activity will rebound due to lower mortgage rates, pushing prices to new highs by the end of the year.
New Construction: A modest recovery is expected, but long-term growth remains uncertain due to affordability constraints and land shortages.
Rental Market: Rising vacancy rates and slowing rent growth will ease pressure on renters, though newly built units may struggle with absorption.
Regional Trends: Metro Vancouver will continue to lead the province in housing activity, while more buyers seek affordability in areas like Surrey, Burnaby, and Victoria.
Government Policy: The increase in the insured mortgage price limit from $1 million to $1.5 million will boost sales, particularly for townhomes, benefiting dual-income households.
Looking Ahead
While 2025 will bring renewed activity in B.C.’s housing market, long-term challenges remain. Rising inventory levels, affordability concerns, and shifting migration trends will shape the future of real estate in the province. Whether you’re looking to buy, sell, or invest, staying informed on these trends will be crucial in making the right decisions in an evolving market.
For more insights on Vancouver and B.C.’s real estate market, subscribe to our updates and stay ahead of the latest trends!
The City of Vancouver is taking a bold step in tackling the housing crisis by launching a market rental housing strategy that could redefine urban development in Canada. Announced by Mayor Ken Sim, the plan involves building 4,300 market rental units on five city-owned sites, with the goal of creating long-term revenue to support affordable housing and community infrastructure.
A New Approach to Housing Development
Unlike traditional housing projects that rely on private developers, this initiative positions the City of Vancouver as both the landowner and developer—a first-of-its-kind move in Canada. While the city has previously used this model for non-market housing, this marks the first major venture into market rentals.
The Vancouver Housing Development Office (VHDO), established in 2023, will oversee the project. Two of the five proposed sites are located in downtown Vancouver, with others situated in Kingsway (2400 Motel site), Marpole, and Main & Terminal.
“This is about leveraging our land not only to deliver much-needed market rental housing but also to pilot a new way to generate non-tax revenue for the city,” said Mayor Sim. The additional revenue is expected to fund community centers, the Vancouver Affordable Housing Endowment Fund, and other city initiatives.
Balancing Public and Private Interests
City officials have emphasized that this strategy is about financial sustainability. The $6 billion property endowment fund, originally established in 1975, will play a key role. The goal is to generate consistent returns to fund public services, moving beyond the traditional model of relying solely on taxes and developer contributions.
“There is another definition of public benefit—the ongoing income stream coming in,” said Grace Cheng, the city’s director of long-term strategy and planning. This means funds could be allocated to renewing libraries, improving water and sewer infrastructure, or enhancing other public services.
The Financial Impact: Billions in Play
While the cost of development is yet to be finalized, city officials estimate that the project’s financial impact will be in the billions.
“The first task is to get these sites zoned for highest and best use under market rental tenure,” said Brad Foster, director of market rental housing at VHDO. “The next task will be, ‘How do we get them built?’ And that’s where all the finance discussions will take place.”
Deputy city manager Armin Amrolia reinforced this, saying, “This is the big leagues of development, and we aim to not shy away from that.”
Who Can Afford These Rentals?
Once completed, these rental units will be targeted toward middle-income earners, with household eligibility ranging between $90,000 and $194,000 per year, based on today’s market rates. This move is expected to address the housing gap for professionals and working families who often struggle to find affordable housing in Vancouver’s competitive market.
The Future of Vancouver Housing
The five sites designated for this project include:
Pacific & Hornby: Two towers (54 and 40 stories) with 1,136 homes.
Main & Terminal: Currently a parking lot, planned for redevelopment.
Granville Bridge North End: Four proposed towers.
2400 Motel (Kingsway): Major transformation planned.
Granville & 67th (Marpole): Another key development site.
This ambitious strategy reflects a “made-in-Vancouver” solution to the housing crisis—one that prioritizes long-term financial stability while increasing rental supply. If successful, it could serve as a model for other cities facing similar challenges.
What’s Next?
The city still needs to finalize zoning, secure development partners, and approve financing agreements before breaking ground. However, officials remain optimistic that this bold initiative will help reshape Vancouver’s housing landscape for the better.
With billions of dollars in play and thousands of new homes on the horizon, Vancouver is stepping into a new era of real estate development—one where the city itself is leading the charge.
The Metro Vancouver real estate market is off to an active start in 2025, with a significant increase in new listings as sellers rush to enter the market. According to the latest report from Greater Vancouver REALTORS® (GVR), the number of homes newly listed on the MLS® system rose by 46% in January compared to the same time last year.
This shift suggests a potential change in market dynamics, with sellers becoming more active after a strong finish to 2024.
Home Sales and Listings: Key Market Trends
January 2025 saw 1,552 home sales, an 8.8% increase compared to January 2024. However, this figure remains 11.3% below the 10-year seasonal average of 1,749 sales.
On the supply side, there were 5,566 new listings across detached, attached, and apartment properties—a 46.9% jump from January 2024 and 31.1% above the 10-year average. The total number of properties for sale has also grown to 11,494, marking a 33.1% increase from last year.
What This Means for Buyers & Sellers
With new listings outpacing demand, the market remains in balanced conditions. According to Andrew Lis, GVR’s Director of Economics and Data Analytics, the recent increase in listings has kept home prices relatively stable to start the year.
The sales-to-active listings ratio, a key market indicator, stands at 14.1% overall. Breaking it down by property type:
Detached homes: 9.2%
Attached homes (townhouses, duplexes): 18.5%
Apartments: 16.5%
Historically, prices tend to decline when this ratio falls below 12% and increase when it exceeds 20% for a sustained period. Since the current ratio remains within a balanced range, price growth has been minimal.
Vancouver Home Prices: Where Do We Stand?
Overall Benchmark Price: $1,173,000 (📈 +0.5% YoY)
Detached Homes: $2,005,400 (📈 +3.1% YoY)
Apartment Homes: $748,100 (📉 -1.7% YoY)
Townhouses: $1,105,600 (📈 +2.7% YoY)
While detached and townhouse prices have increased slightly over the past year, apartment prices have dipped. This suggests that affordability concerns may be impacting the condo market more than other segments.
Economic Uncertainty Could Impact Future Trends
Despite the strong start to 2025, experts warn that external factors could influence the housing market in the coming months. Tariffs from the U.S. and potential economic instability could create uncertainty, affecting both buyer demand and seller confidence.
“Our 2025 forecast calls for moderate price growth by the end of the year, but economic shocks—such as the impact of U.S. tariffs on Canada—could alter these projections,” said Lis.
Should You Buy or Sell in 2025?
With more homes hitting the market, buyers have more options than they did a year ago. However, prices remain stable, meaning sellers are still in a decent position—especially in the detached home and townhouse segments.
If you’re considering buying or selling, staying informed on market trends will be key. The coming months will determine whether demand keeps up with rising inventory, or if we shift into a buyer’s market with more downward pressure on prices.
Vancouver is at the heart of British Columbia’s housing crisis, yet the city continues to restrict new apartment buildings on most of its residential land, preserving it for low-density, single-family housing. While minor zoning reforms have taken place in recent years, more than three-quarters of Vancouver’s residential land still prohibits apartment construction. This outdated zoning policy is not just a relic of the past—it is actively worsening the housing crisis.
The Problem with Exclusionary Zoning
For decades, Vancouver has only allowed apartment buildings in select areas, typically along noisy arterial roads and in older neighborhoods with existing apartments. Meanwhile, the wealthiest single-family neighborhoods remain largely untouched to avoid opposition from Not-In-My-Backyard (NIMBY) advocates.
Although the B.C. government has started pushing back on exclusionary zoning, it has yet to take the crucial step of overturning the apartment ban. This persistent restriction is driving up housing costs, displacing renters, and fueling urban sprawl. Here’s how:
1. Restricting Housing Supply
The Canada Mortgage and Housing Corporation (CMHC) estimates that B.C. needs 610,000 additional homes by 2030beyond current trends. However, by preventing apartments in most areas, Vancouver is artificially constraining supply and keeping housing unaffordable.
2. Forcing Tenant Displacement
With apartments banned in most residential areas, developers target existing apartment buildings for redevelopment, leading to evictions and displacement of renters. If new apartments were allowed in single-family zones, this could alleviate pressure on older rental buildings.
3. Increasing Housing Costs
Since apartment-zoned land is scarce, developers—both for-profit and non-profit—must compete for a limited supply of sites, inflating land prices. The rezoning process itself can cost non-profit housing developers between $500,000 to $1 million, further driving up rents and affordability challenges.
4. Blocking People from Living in Desired Areas
By banning apartments in wealthier neighborhoods, exclusionary zoning ensures that lower-income individuals and renters are forced into high-traffic areas. This policy reinforces economic segregation and limits housing choices.
5. Promoting Suburban Sprawl
With housing options limited in Vancouver, many people are pushed to the suburbs, increasing commute times, transportation costs, and urban congestion. This shift also leads to greater carbon emissions and environmental harm.
6. Raising Infrastructure Costs
Denser housing reduces the per-capita cost of infrastructure like roads, sewers, and schools. However, by enforcing low-density zoning, Vancouver is increasing long-term infrastructure costs and making it harder to address the existing infrastructure deficit.
7. Hindering Economic Growth
By restricting housing in high-opportunity cities like Vancouver, exclusionary zoning prevents workers from accessing better jobs, ultimately stalling economic mobility and growth.
Is Reform on the Horizon?
The B.C. government has introduced legislation to allow multiplexes in single-family areas and to enable apartment buildings within 800 meters of major transit hubs. However, these measures don’t go far enough, and cities like Vancouver still have too many loopholes that allow them to maintain exclusionary zoning policies.
The B.C. Conservative Party has opposed these reforms outright, while the B.C. Green Party has supported housing near transit but voted against multiplex zoning in single-family neighborhoods. With a provincial election approaching, the future of zoning reform hangs in the balance.
The Path Forward
If Vancouver is serious about solving its housing crisis, it must end the apartment ban and allow at least six-storey rental apartments by default anywhere that single-family homes can currently be built. Additionally, non-market housing should receive even greater density allowances to ensure affordability for lower-income residents.
The housing crisis won’t be solved by half-measures. Until the apartment ban is lifted, Vancouver will continue to struggle with affordability, displacement, and economic stagnation. The time for action is now.
Metro Vancouver Real Estate Market Closes 2024 on a Strong Note
VANCOUVER, BC – January 3, 2025 – December 2024 saw a notable uptick in home sales across Metro Vancouver, with transactions recorded on the Multiple Listing Service® (MLS®) rising by over 30% compared to December 2023. This surge reflects a growing demand in the real estate market as the year came to a close.
According to the Greater Vancouver REALTORS® (GVR), the total number of residential sales in 2024 reached 26,561, marking a 1.2% increase from 2023’s 26,249 sales. However, this figure remains 9.2% below the 29,261 sales recorded in 2022 and 20.9% below the 10-year average of 33,559 annual sales.
“2024 was a year of transition for Metro Vancouver’s real estate market,” said Andrew Lis, GVR’s director of economics and data analytics. “Following sharp increases in mortgage rates in prior years, declining borrowing costs have begun to re-energize buyers. This renewed interest is becoming increasingly evident in recent monthly sales data.”
Listings and Inventory
A total of 60,388 properties were listed on the MLS® system in 2024, an 18.7% rise from 50,894 listings in 2023 and 9.7% higher than the 55,047 listings in 2022. This figure was also 5.7% above the region’s 10-year average of 57,136 listings.
As of now, the number of active listings on the MLS® system stands at 10,948, a 24.4% increase from December 2023 and 25.3% above the 10-year seasonal average of 8,737.
Price Trends
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,171,500. This reflects a 0.5% increase compared to December 2023 and a marginal 0.1% decrease from November 2024.
“While total sales fell slightly short of our forecast, December data points to strengthening momentum in the market,” Lis noted. “Sales are trending back toward long-term averages, signaling room for growth as we move into 2025. If this momentum continues, we could see an even more active market this year.”
December 2024 Highlights
Residential Sales: 1,765 homes sold in December, a 31.2% increase from December 2023 but 14.9% below the 10-year seasonal average of 2,074.
New Listings: 1,676 new properties were listed in December, up 26.3% from December 2023, though slightly below the 10-year seasonal average of 1,695.
Sales-to-Active Listings Ratio: The overall ratio was 16.8%, with detached homes at 12.1%, attached homes at 23.6%, and apartments at 18.7%.
Market Segment Breakdown
Detached Homes: December sales reached 494, up 31.4% year-over-year. The benchmark price for detached homes was $1,997,000, a 2% annual increase, with prices holding steady compared to November 2024.
Apartment Homes: Sales totaled 891 in December, a 23.9% year-over-year increase. The benchmark price was $749,900, down 0.1% annually and 0.4% from November 2024.
Attached Homes: Townhouse sales saw the largest growth, surging 55.9% year-over-year to 371 transactions. The benchmark price was $1,114,600, up 3.4% from December 2023 and down 0.3% from November 2024.
While 2024 started on a slower note, the year closed with steady price trends and growing buyer activity. These developments set the stage for what could be a more dynamic market in 2025.
