Vancouver’s housing market remains one of Canada’s most dynamic and expensive, but unlike other major cities experiencing declining sales and price fluctuations, home values in Vancouver have held steady going into 2025. With an average home price of $1.23 million, the market has seen a 2.9% increase year-over-year, despite a drop in sales and rising inventory.
As of December 2024, home sales in Metro Vancouver fell by 12% compared to the previous year, with 2,940 transactions recorded. Despite this decline, prices continued to rise, particularly in the detached home segment, where values increased by 3.5% year-over-year, bringing the average detached home price to $1.92 million. Condo prices remained relatively stable at $765,000, while townhomes saw modest appreciation, reaching $1.05 million. The number of new listings increased by 14%, signaling a shift toward a more balanced market.
One of the biggest reasons Vancouver home prices have remained firm is the city’s persistent housing shortage. The lack of available land and strict zoning laws have made it difficult to build new housing, particularly for detached homes and family-sized properties. This ongoing supply constraint continues to push prices upward, even as demand fluctuates. While more listings have entered the market, the overall supply is still too low to significantly impact pricing trends.
Vancouver’s rental market is another factor keeping home values stable. With vacancy rates at just 1.2%, competition for rental units remains fierce. The average rent for a one-bedroom condo has now reached $2,950, marking a 7.1% increase year-over-year.
Many would-be homebuyers are opting to rent longer due to affordability concerns, increasing demand for rental properties and reinforcing the investment appeal of real estate. Investors who might otherwise sell their properties are instead holding onto them for rental income, reducing the number of available homes on the market.
Strong immigration and population growth are also fueling demand. Vancouver continues to attract thousands of new residents each year, with over 80,000 people expected to move to the city in 2025. Many of these newcomers will enter the rental market first, but long-term, this population growth ensures steady demand for homeownership as well. Additionally, Vancouver remains a top choice for international buyers. Unlike other Canadian cities that rely more on local buyers, Vancouver’s luxury market continues to see demand from wealthy overseas investors, particularly from Asia. These buyers are less affected by mortgage rates and economic fluctuations, helping to stabilize prices in high-end real estate.
Although home prices are holding firm, the rising number of listings has given buyers more options and greater negotiating power. Many are taking their time before purchasing, looking for deals and avoiding bidding wars. Condos and townhomes have become particularly attractive options for buyers who are priced out of detached homes. In suburban markets like Surrey, Langley, and Coquitlam, buyers are finding more affordable alternatives to Vancouver’s soaring prices.
A detached home in Surrey now averages $1.35 million, significantly lower than Vancouver’s $1.92 million price tag. These suburban areas continue to attract first-time buyers and families seeking more space without leaving the Metro Vancouver region.
David and Rachel, a couple in their early 30s, had been renting a two-bedroom condo in downtown Vancouver for $3,100 per month. With rising rents and interest rates stabilizing, they decided to purchase a townhome in Burnaby for $1.02 million in late 2024. Buying in Vancouver itself was out of reach for them, but moving to Burnaby allowed them to stay close to the city while gaining the space they needed. Their story highlights how many buyers are compromising on location rather than delaying homeownership altogether.
For sellers, pricing strategically has become essential. With inventory increasing, buyers have more choices, and overpriced homes are staying on the market longer. While Vancouver still has a strong demand for housing, sellers can no longer rely on multiple offers or quick sales unless their property is competitively priced.
Those in highly sought-after neighborhoods, such as West Vancouver and Kitsilano, are still seeing strong interest, but sellers in less competitive areas may need to adjust their pricing expectations or offer incentives to attract buyers.
Looking ahead, experts predict Vancouver’s housing market will remain relatively stable throughout 2025. While sales may continue to fluctuate, strong demand, limited supply, and high rental prices are expected to keep home values from declining significantly. The Bank of Canada’s interest rate decisions will also play a crucial role. If further rate cuts occur, borrowing conditions will improve, potentially bringing more buyers back into the market. However, if inflation pressures persist and rates remain steady, affordability concerns could continue to limit purchasing activity.
Vancouver’s housing market is proving to be one of Canada’s most resilient, with prices holding firm despite shifting sales activity. While buyers now have more options and greater leverage in negotiations, affordability remains a challenge. Sellers must adapt to new market conditions, ensuring their properties are priced correctly and presented well to attract serious buyers. For those considering entering the market, whether as buyers, sellers, or investors, 2025 is shaping up to be a year of careful decision-making rather than rapid market swings.
