Unlocking 2025: Key Insights for Vancouver Landowners and Developers
Real-world strategies to navigate emerging trends in land values and multifamily development in Vancouver, based on the industry-leading PwC Emerging Trends Report
The PwC Emerging Trends in Real Estate 2025 report provides valuable insights into the current and upcoming dynamics of the real estate market. To save you the time of reading the entire 134-page report, I have crafted a focused summary specifically for Vancouver landowners and multifamily developers, highlighting key 2025 trends and offering actionable insights tailored to the findings.
The real estate market in Vancouver is poised for significant shifts in 2025. For landowners and multifamily developers, understanding these emerging trends and adapting strategically will be crucial for success. This analysis focuses on seven critical insights from the report, contextualized for Vancouver’s unique landscape with clear actionable insights provided for each point.
Read on to discover how these trends can shape your strategy and give you a competitive edge in Vancouver's dynamic market.
1. Interest Rate Easing and Capital Markets
The Federal Reserve’s decision to ease monetary policy in late 2024 is set to lower borrowing costs, creating opportunities for Vancouver developers. A forecasted 200 basis-point reduction by the end of 2025 signals improved financing conditions, which will make land acquisitions and new developments more financially viable.
Actionable Insight:
Landowners should reassess property valuations as borrowing costs decrease, potentially attracting more buyers. Market may be moving towards higher volumes this year, creating favourable conditions.
Developers can plan for longer-term projects, taking advantage of improving debt conditions. Launching construction loans later in the year may improve your bottom line.
2. Housing Affordability Challenges
Housing affordability remains a pressing issue across North America, and Vancouver is no exception. The report highlights a growing gap between housing demand and supply, particularly in affordable rental units. This imbalance is exacerbated by high land costs and regulatory hurdles.
Actionable Insight:
Landowners with properties in areas suitable for affordable housing should explore partnerships with developers focusing on mid-market and below-market rental units. In Vancouver’s highly regulated market, there is usually very prescriptive affordable housing policy already in place. Be aware of how this affect your land, as it’s not always cut-and-dry.
Developers might consider prioritizing projects eligible for government incentives, such as those under Vancouver’s affordable housing initiatives or density bonus programs. This is easier said than done, as competition is often fierce for government funds. Nonprofit and First Nation partnerships remain viable a way to end up at the top of the pile.
3. Multifamily Market Trends
The multifamily sector is entering a recovery phase, with demand outstripping supply in many urban centres. For Vancouver, this trend aligns with its growing population and limited available land. However, oversupply concerns exist in some markets, highlighting the need for careful project planning.
Actionable Insight:
Developers should focus on high-demand submarkets, particularly transit-oriented areas or those included in Vancouver’s Official Community Plans (OCPs) that emphasize increased density. Obvious choices are all TOAs, The Broadway Plan, and Grandview-Woodlands. But don’t discount the 49th Ave corridor and Secure Rental Policy for finding feasible projects with shorter approval periods than you might expect.
Landowners in underutilized or upzoned areas should position their properties as ideal candidates for multifamily redevelopment. Be especially aware of restrictions on tower development which could prevent your site from benefitting from high-density development values (for example, maximum number of towers allowed per block or minimum distances between high-rise towers).
4. Climate Resilience as a Key Driver
Climate change and resilience are becoming critical factors for buyers, investors, and regulators. The report notes increasing insurance costs and stricter building standards for high-risk areas, such as flood zones.
Actionable Insight:
Developers should integrate sustainability features and resilience measures into new projects to align with market demand and regulatory requirements. Much of this is already legislated in City of Vancouver, making it a mute point.
Landowners should highlight climate-resilient features of their properties during marketing efforts, particularly in areas perceived as low-risk. Strong initial due diligence can help position your site above the crowd. Understand the long-term history and ecology of your site may present unexplored opportunities for differentiation that get your property noticed.
5. Shift Toward Higher Quality Developments
The “flight to quality” trend, first observed in office and industrial properties, is now influencing residential developments. Tenants and buyers increasingly demand higher-quality spaces with modern amenities and energy-efficient designs.
Actionable Insight:
Developers should invest in high-quality finishes and energy-efficient systems to attract top-tier tenants and achieve higher rents. Understanding the psychographic profiles of your target buyers or tenants can help you invest in the amenities and features that generate returns, and avoid wasting money.
Multiplex landowners can consider enhancing property value by obtaining permits for premium developments before sale. Land assemblies and larger sites can maximize value by first choosing the right buyer who can deliver a quality project, and second by allowing time for approvals thereby reducing risk.
6. Evolving Demographics and Migration Patterns
Vancouver continues to attract significant international migration, a key driver of its real estate market. While domestic migration patterns are stabilizing, Vancouver’s diverse economy and global appeal ensure steady population growth, particularly among younger, urban-dwelling professionals.
Actionable Insight:
Multifamily developers should cater to the preferences of young professionals, such as smaller units with shared amenities or co-living spaces. New AI tools make translation easier and cheaper than ever. Projects can be marketed in multiple languages - both for condos and rentals. By 2029, 55.5% of Vancouver’s population will have a first language that’s not English, further shaping the city’s multifamily market dynamics.
Landowners in neighbourhoods seeing demographic shifts should leverage these changes when marketing their properties. Knowing how demographics are shifting can absolutely affect future value. And marketing the demographic shift to the right developers could help you get the most out of your site, capturing a piece of that future.
7. Zoning and Policy Considerations
The report underscores the role of zoning and policy in shaping land values. In Vancouver, upzoning opportunities and density bonuses provide a significant edge for landowners and developers who can navigate the regulatory landscape effectively.
Actionable Insight:
Landowners should consult with real estate professionals to understand the upzoning potential and maximize their property’s value. The soon-to-be-approved Vancouver Plan is a major initiative which will affect many landowners in the city. Pay especially close attention to that evolving process.
Developers should keep a close watch on Vancouver City Council’s updates to zoning bylaws and land use plans, particularly regarding multifamily housing and transit-oriented developments. Join UDI for policy updates, if you haven’t already.
Conclusion: Navigating 2025 with Strategic Vision
For landowners and multifamily developers in Vancouver, 2025 is shaping up to be a year of cautious optimism. While challenges persist, opportunities abound for those who align with emerging trends and plan strategically. By focusing on affordability, quality, and sustainability, you can position your property or development project for success in this evolving market.
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
If you have questions about specifically how to apply these strategies to your unique situation, please email seth@multifamily.ca or call (778) 686-3330.