emerging real estate trends 2025: key insights for vancouver’s land market
The PwC Emerging Trends in Real Estate 2025 report offers a detailed view of the forces shaping North American real estate in the year ahead. This article distills the most relevant insights for Vancouver landowners and multifamily developers, focusing on how interest rates, zoning policy, affordability, and shifting demographics are influencing land values and development potential. Rather than summarizing all 134 pages, this piece highlights the trends that matter most in Vancouver—and offers real-world strategies to help you navigate them.
introduction: a year for recalibrating, not retreating
The 2025 edition of PwC’s Emerging Trends in Real Estate signals a year of measured optimism across North American real estate markets. While the headline may read as a period of adjustment, the subtext is clear: opportunity exists for those who move strategically. Vancouver, with its layered planning policies, constrained land supply, and strong migration patterns, remains uniquely positioned.
This article distills key takeaways from the 134-page PwC report, focusing specifically on what matters for landownersand multifamily developers in Vancouver. From interest rate trends to zoning strategies, these insights are both high-level and locally relevant. We’ve broken them down into clear sections, each with practical actions you can take in 2025.
monetary policy shift opens doors for development
One of the report’s most significant findings is the expected easing of monetary policy. With the U.S. Federal Reserve leading the way in late 2024 and the Bank of Canada following suit, interest rates are forecast to decline by up to 200 basis points by year-end 2025. That shift is already beginning to improve access to capital.
Actionable insights:
Landowners should revisit property valuations. Lower borrowing costs could bring sidelined buyers back into the market—particularly developers with approved or near-ready sites.
Developers should time financing strategies carefully. Construction loans taken later in the year could come with more favourable terms. This is an opportunity to greenlight long-term projects that didn’t pencil out in 2023–2024.
housing affordability remains a defining issue
Affordability continues to shape both public policy and development economics. PwC notes the widening gap between market supply and affordability, particularly in major metros like Vancouver. While regulatory hurdles persist, the opportunity to deliver affordable or mid-market rental housing is substantial.
Actionable insights:
Landowners with properties in transit corridors or upzoned areas should explore partnerships with affordable housing developers—especially those backed by nonprofits or Indigenous housing groups.
Developers pursuing mid-market or below-market rentals should investigate density bonuses and incentive programs. These are not always easy to access, but those with strong policy literacy and partnerships can gain a significant edge.
multifamily demand is rising—but so is scrutiny
The PwC report sees multifamily as a leading asset class in the next recovery cycle, driven by population growth and urban demand. But caution remains: some markets face overbuilding, and investors are seeking certainty. For Vancouver, demand continues to exceed supply, but project feasibility depends heavily on location, design, and entitlement strategy.
Actionable insights:
Developers should prioritize transit-oriented areas and neighbourhoods identified in Official Community Plans (OCPs) like the Broadway Plan, Grandview-Woodland, and potentially the 49th Avenue corridor.
Landowners should understand the limitations of their site—especially tower spacing, height caps, and floor area constraints. Not every “upzoned” property translates to a high-rise opportunity.
resilience and sustainability are now baseline expectations
Climate resilience is no longer optional. PwC highlights the increasing role of environmental risk in development feasibility, with higher insurance costs and market preferences pushing toward greener, more resilient buildings. In Vancouver, most of this is now embedded in regulation—but that doesn’t mean it’s commoditized.
Actionable insights:
Developers should go beyond compliance by identifying ways to differentiate on sustainability—especially in marketing and investor materials.
Landowners should highlight long-term site resilience in their listing materials. Demonstrating low flood risk, solar exposure, or ecological stewardship can elevate your property in a crowded field.
quality counts: the “flight to better” arrives in housing
A trend that started in office and industrial is now reshaping residential development. PwC describes a “flight to quality,” where tenants and buyers are gravitating toward higher-end, well-designed spaces—even in the rental sector. For Vancouver, this is amplified by demographic shifts and tenant expectations around wellness, energy efficiency, and community.
Actionable insights:
Developers should invest in unit design, amenity planning, and durable systems that support long-term tenant retention. Understanding your end-user profile is now a business necessity.
Landowners assembling or marketing multiplex or low-rise sites can increase value by demonstrating build-out potential that meets these higher standards.
shifting demographics create new opportunities
Vancouver’s growth continues to be driven by international migration. By 2029, more than 55% of residents will have a first language other than English. PwC emphasizes the importance of these demographic changes—not only for marketing, but also for housing typologies and community design.
Actionable insights:
Developers should consider smaller units, multi-lingual marketing, and communal features tailored to younger, culturally diverse residents.
Landowners in gentrifying or diversifying areas can use demographic data as a value driver—connecting the right development story to the right buyer.
zoning reform is the quiet giant of 2025
PwC identifies zoning reform as one of the most impactful drivers of real estate value—particularly in cities like Vancouver where policy is rapidly evolving. As the Vancouver Plan approaches formal adoption, landowners and developers must stay informed. Those who act early will benefit most.
Actionable insights:
Landowners should proactively engage planners or advisors to understand how new policies affect their properties—especially with regard to floor area, tenure requirements, and urban design overlays.
Developers should maintain close contact with City Hall, industry groups like UDI, and local planners to monitor timing and implementation details. Policy literacy is no longer optional—it’s a fundamental requirement.
conclusion: clarity, not certainty, drives results in 2025
The 2025 real estate landscape is defined not by explosive growth, but by strategic movement. Interest rates are easing, demand remains steady, and policy continues to evolve. For landowners and developers in Vancouver, this means opportunity exists—but only for those who understand the layers beneath the market surface.
PwC’s Emerging Trends report provides a clear signal: those who adapt thoughtfully—not react hastily—will be best positioned. Whether you’re holding land, planning a project, or exploring a sale, 2025 is the year to bring discipline, data, and long-term vision into every move you make.
If you’d like to explore how these insights could directly shape your decisions, I’m available for a discreet, strategic conversation.
-
Emerging Trends in Real Estate 2025 by PwC and the Urban Land Institute.
For further reading, you can download the entire 134-page PwC Report at https://www.pwc.com/us/en/industries/financial-services/images/pwc-etre-2025.pdf
more about this topic
Current Opportunities
