As with anywhere else, many things influence the Canadian real estate market, leading to new trends. It could be an aging population, a new government bringing in different policies, and a changing economy. Staying on top of trends is important to know what to expect, whether you are looking to buy a home, sell one, investment property, or a realtor. It’s also crucial to understand local regulations, so this trends list includes legal considerations.
1. Increased Rural Property Demand
The COVID-19 pandemic brought a rise in remote work for safer conditions, and many businesses have kept that going long after. That means many Canadians no longer need to live near the office; their homes are where they work instead. That has increased property demand in rural areas where properties can often be more affordable for the amount of space than downtown centers.
Understanding zoning and land-use regulations matters when buying property in rural areas. Zoning laws can vary widely between municipalities and affect what kind of developments are allowable on a piece of land. Buyers should also check if the land is subject to environmental or heritage designations, as these restrictions may limit how the property can be developed or renovated.
2. Sustainability in Canadian Real Estate
Sustainability is not the first thing you might think of when talking about real estate, but it’s definitely trending in Canada. In 2025, more buyers and investors will likely be looking for energy-efficient homes with eco-friendly features, such as reclaimed wood floors. As a result, some developers are using sustainable design features like solar panels and installing appliances that use less energy.
Sustainable building practices are based on various local, provincial, and federal regulations. For example, green building certifications like LEED are becoming more common and can increase a property’s value. These structures must meet specific environmental standards based on where they’re located. Also, some provinces offer tax incentives or rebates for homeowners who make energy-efficient upgrades, so being aware of what’s available makes sense.
3. Tech in Real Estate Transactions
Tech is exciting in the Canadian real estate market, from virtual property tours to online listings and e-signatures for buyer-seller and landlord-renter contracts. These trending technologies can make buying, selling, and renting properties more convenient and accessible. Virtual tours allow potential buyers to explore properties that are physically far away without having to travel there to see them in person, for example.
But tech comes with potential legal issues, too. For instance, when using e-signatures, the digital agreements must meet legal standards under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) or risk not being binding by law. To ensure you know what’s covered, check with a real estate lawyer in Mississauga, conveniently available online.
4. Short-Term Rentals
In big cities like Toronto, Vancouver, and Montreal, short-term rentals called Airbnbs are popular. They have given property owners the chance to earn extra income by renting out homes or individual rooms, typically for a few days or weeks at a time. Many travellers like this type of accommodation because it’s usually budget-friendly.
However, Airbnbs have come with legal concerns, particularly in taxes and zoning laws. Many Canadian cities have put regulations in place to control the growth of short-term rentals, such as limiting how many days they can rent out their properties. In Toronto, non-residents or investors may face additional taxes, such as the Municipal Accommodation Tax. Understanding local laws for short-term rentals is essential for property owners.
5. Housing Affordability Crisis
Across Canada, home prices have skyrocketed, especially in the big cities. There are many reasons why, including low interest rates, rising population, and fewer homes for sale. With the prices up, becoming a first-time homebuyer is more difficult than ever.
With rising home prices, buyers should understand the legal implications of purchasing a property at a higher cost. For example, get to know the mortgage rules set by the Canadian government, such as the stress test. This test requires buyers to qualify for a mortgage at a higher interest rate than the one offered by the lender.
What about Interest Rates?
After the pandemic, the Bank of Canada initially lowered interest rates to encourage the economy, which led to historically low mortgage rates. That led to a huge rise in home buying and real estate investments. Then, as inflation became worrisome, the Bank of Canada raised interest rates to cool the economy, which drove up borrowing costs. These hikes have made mortgages more expensive for potential homebuyers, especially those who have never owned property.
Conclusion: Real Estate in Canada
There are many different trends to keep an eye on, including rising home prices, more people moving to rural areas, sustainability, and technologies. These trends offer both opportunities and challenges, and understanding the legal aspects of each one can help you make more informed decisions as a buyer, seller, or investor.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
