​As the 2025 federal election approaches, Real Estate Magazine is keen to understand the perspectives of Canadian real estate professionals on key issues that impact our industry. We’re launching a reader poll to gather your insights on topics ranging from voter intentions to housing policies and the challenges you face in your day-to-day.

Your participation is invaluable. By sharing your views, you’ll help paint a clearer picture of the collective stance of Realtors country-wide. The poll covers areas such as:​

Voter Intention: Which political parties and leaders you believe align best with the interests of the real estate sector.​

Housing and real estate policy: Your priorities for federal action on housing issues, including supply solutions, affordability measures, and regulatory reforms.​

Realtor perspective: Your preferred policy approaches to housing affordability and which leaders you trust to address these challenges effectively.​

Industry impact: Your confidence in the housing market’s outlook and the biggest challenges currently facing your business.​

The poll is designed to be concise and should only take a few minutes to complete. All responses will be kept confidential, and aggregated results will be shared in an upcoming article to inform and engage our community.​

To participate, please click on the following link: REM 2025 Federal Election Reader Poll​

Your voice matters. Together, we can provide valuable insights that reflect the collective expertise and concerns of Canadian Realtors ahead of April 28th.

Canada’s once unstoppable population growth is finally tapping the brakes, and the ripple effects are beginning to surface—most notably in the country’s rental markets.

In a significant shift that could reshape the dynamics of Canada’s real estate landscape, the country has recorded the highest exodus of non-permanent residents (NPRs) since the Canada Mortgage and Housing Corporation (CMHC) began tracking this data in 2021. This exodus coincides with a marked softening of rental rates across various Canadian markets, hinting at a direct relationship between the two trends.

While the federal government recently committed to reducing population growth, available data suggests this decline may have already been underway before any official announcements. A recent report published on Valery.ca outlined how population growth could be predicted by rental inflation months in advance. 

Canada’s once unstoppable population growth is finally tapping the brakes, and the ripple effects are beginning to surface—most notably in the country’s rental markets. This plan includes the first-ever comprehensive strategy to manage not only permanent residents but also temporary ones.

Immigration targets in focus

As part of the new framework, the government aims to gradually reduce permanent resident targets from 500,000 in 2024 to 395,000 in 2025. The numbers will further decline to 380,000 in 2026 and 365,000 in 2027. This deliberate scaling back is expected to curb the intense demand for housing, especially rental units, which has surged in recent years due to high levels of immigration.

Temporary residents, including international students, foreign workers, and other NPR are also significant contributors to housing demand. While precise targets for temporary residents have not been disclosed, the government’s inclusion of this group in its planning signals a more controlled approach to overall population growth. Temporary residents often cluster in urban centres like Toronto, Vancouver, and Montréal, where they compete with locals for limited rental housing. Consequently, their departure is having a profound cooling effect on these overheated rental markets.

The link between population and rent inflation

The Bank of Canada has long highlighted the relationship between population growth and rent inflation. A booming population naturally amplifies housing demand, leading to rising rents, particularly in urban centres. However, recent data paints a different picture. As we enter 2025, several sources, including The Habistat and Rentals.ca, report a noticeable deceleration in rent inflation.

According to these reports, rental inflation is beginning to stabilize due to two key factors: slower population growth and increased rental supply. This shift marks a notable departure from previous years when double-digit rent hikes were common in major cities. CMHC’s Q4 report highlights this trend, with Toronto experiencing the lowest rent growth among major regions in 2024, at 2.7 per cent, down significantly from 8.8 per cent in 2023.


Interestingly, not all experts agree on the extent of this trend. Ben Myers of Bullpen Research, for example, has observed differing patterns in specific unit sizes, given the majority of new condominium supply is smaller. The prevalence of smaller units skews the average and median data down, but illustrates that units on a per-square-foot basis are not falling as sharply as the headline data might suggest: 

Source: Ben Myers, Bullpen Research

NPR departures and cooling rental markets

Once hailed as the eternal bull case for Canadian real estate, population growth seems to be grinding to a halt. In a surprising policy flip mentioned above, the liberal government took a populist approach after years of defending its position that its population growth strategy was sustainable. 

One of the most striking elements of this narrative is the synchronicity between the departure of NPRs and the cooling of Canada’s rental markets. NPRs, who typically contribute significantly to demand for rental housing, are leaving in record numbers, reducing upward pressure on rents. This shift has provided much-needed relief for tenants, but it also raises critical questions about the future of Canada’s housing market.

For example, a significant drop in NPR numbers could lead to prolonged stagnation in rental demand, especially in urban centres that have historically relied on this demographic to absorb new rental supply. Compounding this, some of these markets are experiencing record supply. This could also challenge landlords who are already grappling with high borrowing costs and reduced cash flow, forcing some to sell or convert their properties to owner-occupied units.

What lies ahead for Canada’s housing market

As Canada navigates a new era of housing and immigration policy, finding a balance between managing population growth and sustaining economic vitality will be critical. The ongoing decline in this demographic could have ripple effects beyond the housing market, potentially slowing growth in key sectors like retail, hospitality, and education. Canada’s GDP grew substantially from record population growth in the last few years while sacrificing per capita GDP. Now, we can see the opposite impact occurring as population growth slows in the absence of economic growth—GDP could fall, putting Canada clearly in a recession in 2025.  

At the same time, this transition offers an opportunity to reassess Canada’s housing priorities. By incentivizing the development of affordable housing, supporting renters, and expanding homeownership opportunities, policymakers can address the challenges posed by a slower-growing population. Proactive adjustments to housing policy, paired with a measured approach to immigration, could mitigate affordability issues while fostering sustainable development. The unfortunate part about all of this is that it sounds great in theory, but the reality is that it’s a painful process to get to. 

Much like a construction project, you have to demolish a derelict building before you can create a new one on a new foundation. The demolition process is necessary, but not pretty. 

That’s the phase of the process we’re in now. We’re not rebuilding yet. We’re just realizing that what we built before wasn’t working – and we’re doing something about it. The decisions made today will shape the future of Canada’s real estate market for years to come.

The Canadian real estate market is at an inflection point. Traditional investment strategies are being reevaluated in the face of higher financing costs, economic headwinds and heightened geopolitical risks. However, amidst this challenging landscape, exciting new opportunities are emerging for businesses and investors willing to adapt and innovate creatively. 

A new report from PwC highlights a mixed real estate outlook in 2025 and points towards a future where new technologies such as generative AI, emerging asset classes such as data centers and climate-resilient infrastructure will be key drivers of success. 

As we head into 2025, here are a few emerging trends:

Generative AI will reinvent the real estate industry

While still in its early stages of adoption, generative AI offers significant competitive advantages, helping organizations maximize efficiencies, accelerate innovation, and improve productivity. 

From creating architectural renderings and supporting developers with land due diligence to monitoring rental market trends, generative AI is poised to revolutionize how businesses and investors operate, even amidst economic pressures.  

Data centres and other niche assets offer new opportunities for investors

As traditional real estate investments slow down, demand for niche property types like data centres and cold storage facilities is surging, driven by the exponential growth of generative AI and continued growth in e-commerce. 

With residential real estate markets in Canada’s largest cities like Toronto and Vancouver slowing, investors are shifting their focus to other regions and specialized asset classes. Data centers present a prime investment opportunity with the potential for significant returns. Infrastructure investments, such as those in digital connectivity and sustainable energy, are also gaining attention for their stable cash flows and diversification benefits. 

This represents a shift towards integrating real estate with infrastructure to meet evolving economic and technological needs – a trend we expect to continue in 2025. 

Build for the future with climate-resilient real estate investments

Climate resilience is now a key factor in assessing real estate value due to the increasing frequency and severity of extreme weather events. These events directly impact property values, insurance costs and disclosures. 

Forward-thinking investors are prioritizing climate change preparedness, recognizing that these investments offer both risk mitigation and enhanced ROI. Buildings designed with energy efficiency, sustainable materials, and robust infrastructure are more resilient to climate impact and attract sustainably conscious tenants.

Distressed assets offer new avenues for private investors  

Capital constraints and more conservative lending standards will continue into 2025. With traditional capital scarce, private investors, including family offices, high-net-worth individuals, and those willing to consider distressed real estate will find opportunities in the new year.  

In addition, while larger real estate investors can still access loans, smaller and less established companies face higher capital constraints. This environment creates new opportunities for private investors to provide capital to projects that face financing gaps or challenges. 

Foreign investors will fuel Canadian real estate dealmaking

A resurgence in dealmaking is expected from foreign investors with available capital. These investors plan to capitalize on emerging distress in real estate, facing less domestic competition for assets like multifamily and industrial properties. 

Affordability will continue to remain a critical challenge in many Canadian housing markets. While Western Canada, particularly Calgary and Edmonton, continues to emerge as a top market to watch due to relative affordability, this region also faces increasing climate-related concerns, making sustainability a growing focus.

2025 will be a year of creative deal-making, strategic partnerships, and a willingness to explore new approaches. While the outlook is mixed, there are signs of optimism. Those who embrace emerging technologies like generative AI, prioritize sustainability, and diversify their portfolios across regions and asset classes will be best positioned to navigate the Canadian real estate market and capture significant value.

Canadian housing starts jumped 8 per cent in October, due largely in part to increases in the multi-family sector and single-detached, according to the national housing agency.

Canada Mortgage Housing Corporation (CMHC) says the seasonally adjusted rate of housing starts in October was 240,761 units, up from 223,391 in September.

The multi-family sector was behind the gain, with urban starts up 7 per cent month-over-month to nearly 176,000 units, while single-detached urban starts increased 1 per cent, to 47,406 units.

GTA presales remain “exceedingly weak” 

“Even with October’s gain, the outlook for housing starts remains soft,” Rishi Sondhi, economist, TD Economics, writes. “This is largely due to the outsized weakness expected for Ontario, which will bring down the national figures. We’d note that over the last 12 months, starts have tumbled to levels last seen in 2020 in Ontario.”

Sondhi explains presales remain “exceedingly weak” in the Greater Toronto Area, with more of the same expected in 2025. “This is the key factor underpinning our forecast that starts will decline next year, even with homebuilding likely to hold up better in other parts of the country.”    

“Despite these results, we remain well below what is required to restore affordability in Canada’s urban centres,” Bob Dugan, CMHC 

The six-month trend in housing starts was flat in October at 243,522 units. 

“Actual year-to-date housing starts are similar to last year, but we continue to see higher activity in the Prairie provinces, Quebec and the Atlantic provinces, while Ontario and British Columbia have seen declines in all housing types,” explains Bob Dugan, CMHC chief economist, in a press release.

“The increases in the monthly SAAR in Toronto and Vancouver are a promising sign for Ontario and British Columbia, as they drove the national SAAR increase in October,” Dugan adds. “Despite these results, we remain well below what is required to restore affordability in Canada’s urban centres.” 

Environmental, Social and Governance (ESG) factors are increasingly important considerations for occupiers, tenants, managers and investors in Canadian real estate. At the building and portfolio level, we see increasing demand and regulatory pressures for disclosure of building performance, physical climate risk and social impacts including physical accessibility and inclusion.

B Corp framework to bring ESG goals into real estate business strategy

ESG can be integrated into any business operations and marketing context. The essential ingredients are measurement of current state performance and identifying smart, actionable activities to create a pathway to get your business to a more progressive place.

One of the best frameworks that I’ve seen for bringing ESG goals into business strategy is defined by B Corp.

B Corp stands for “Benefit Corporation” and is a corporate certification process that brings social and environmental business best practices together with a rating system. B Corps that you may know include Patagonia, Business Development Bank of Canada and Bullfrog Power.

ESG value propositions in real estate: Measure, categorize, discover, decide

In the Canadian real estate context, ESG-based value propositions can assist in differentiating your business and creating genuine benefits for the communities that you work in. 

Many Realtors are community leaders with businesses integrated into the fabric of their community. This can manifest as sponsorship of local sports teams, contribution to community fundraising, support of local community groups and active volunteerism.

As a result of the community-centricity of many real estate practices, introducing ESG factors into your real estate value proposition and strategic goals can begin with:

1. measuring your current contributions to the community,

2. categorizing these into Environmental, Social and Governance and

3. discovering and deciding how to include these important contributions that benefit your community in your value proposition and marketing.

Competitive industry advantages

To get insights into the importance of ESG at a marketplace level, I reached out to Philippe Bernier, executive vice president, strategy and growth at JLL Canada. Bernier focuses on knowledge and advice regarding asset renewal toward decarbonization. 

He points out, “Every property, whether residential or commercial, has a defined set of local competitors, properties that compete against one another for tenants or buyers. Today, there is also a limited supply of decarbonized buildings and a clear gap relative to demand.

According to Bernier, when it comes to tackling carbon emissions, there are clear competitive advantages: “A building will better compete to win high-quality tenants and will improve bid depth and liquidity at time of sale. Furthermore, decarbonized buildings are increasingly more attractive to both appraisers and lenders,” he explains.

Global supply gap of low-carbon buildings shown in major Canadian commercial markets

ESG in buildings is measured with emphasis on energy efficiency and operational carbon emissions, and with growing attention to embodied carbon from materials selection. The conversation about physical climate risk is also increasingly included in ESG measurement. Occupancy benefits are often reflected in increased tenant comfort, satisfaction and well-being, as well as in improved employee attraction and retention.

According to JLL Research, there’s a global supply gap of low-carbon buildings, which is reflected in Canadian commercial marketplaces such as Toronto and Vancouver. For example, the group notes that 89 per cent of Toronto’s top occupier base for office have publicly committed carbon-reduction targets, and 59 per cent of known demand will not be met in 2030 if no further action is taken to accelerate retrofits and low-carbon construction.

This unmet supply gap demonstrates an ongoing need for accelerated new build and retrofit commercial spaces to meet existing and emerging demand. 

Key value prop: Help clients understand an asset’s energy efficiency, carbon emissions & decarbonization potential

When we think of the highest and best use for a property, we often think of maximum rent production or optimal market resale valuation for any given location. Conventionally, we might consider this at a maximum square footage, retail frontage or marketplace-aligned finishing level.

Bernier proposes that helping clients understand their asset’s current energy efficiency and carbon emissions, as well as decarbonization potential, is an important ingredient to the value proposition of today’s real estate practitioners. 

“Real estate investors with core, value-add and even opportunistic holdings can unlock additional value through purposeful carbon-emission reduction strategies. With well-timed operational and capital investments, owners can reduce whole-life costs, reduce risk and help buildings and portfolios stand out against the competition,” emphasizes Bernier.

He explains that the commercial marketplace understands this well, and many office, industrial, retail and multi-family investors also care deeply.

Essential to ‘understand basic energy consumption, carbon emissions & environmental & social building certifications’

“Low-carbon buildings are now a requirement of leading tenants, and accelerating supply is a priority for long-term investors. Put simply, decarbonized buildings perform better and are more comfortable for occupants,” says Bernier.

“For every real estate practitioner, understanding basic energy consumption, carbon emissions and environmental and social building certifications is essential.”

Bringing ESG into your real estate practice is important to your clients. There are strategic reasons to take advantage of this marketplace shift, to measure your positive contributions to society and to help your clients create greater future real estate value through progressive asset renewal oriented to decarbonization, resilience and accessibility.

The advice you give will vary based on where you are in Canada. Each jurisdiction is subject to integration with existing power distribution networks, weather patterns and physical natural hazards.

As an expert practitioner in your marketplace, there may be opportunities that are particularly relevant to your clients. Aligning your real estate value proposition to include ESG-based performance targets is easy and is a way to frame the community benefits your business already contributes. 

To learn more about marketplace trends, consult JLL’s research library. To learn more about high-performance buildings, consult your local chapter of the Canadian Home Builders Association, Passive House Canada, the Canada Green Building Council and Natural Resources Canada.