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Housing Market Predictions for 2025

Housing Market Predictions for 2025

Market overview

  • Strong Demand Continues – More people and jobs, lower mortgage rates, and better housing options will keep demand high.

  • Challenges Ahead – Fewer newcomers, more new homes, and economic uncertainty may slow resale home sales.

  • Sales Still Strong – Over 26,000 homes are expected to sell, which is 20% higher than long-term averages.

  • Market Shifts Coming:

    • Condo sales may slow as rent prices drop and fewer people move to Calgary.

    • Detached homes could see more buyers due to lower interest rates and better supply.

  • More Homes Available – A record number of new homes will be built, leading to more resale listings.

  • Prices Growing Slowly – With more homes on the market, price increases should slow to around 3% for the year.

Calgary’s Housing Supply & New Construction in 2025

  • More Homes, Less Pressure – By November 2024, 22,563 new homes were completed, including 9,340 rental units, helping to ease resale prices and rent costs.

  • Record-Breaking Construction – Over 22,652 new homes started in 2024, surpassing 2023’s total of 19,579.

  • Apartments Lead the Boom – Nearly half of new builds were apartments, including 5,000 rental units.

What This Means for 2025

  • More Housing Choices – As these homes are completed, buyers and renters will have more options, reducing competition.

  • New Construction Will Slow – After a record surge in 2024, new builds will ease as supply catches up with demand.

  • Lower Interest Rates Keep Demand Strong – More affordable mortgages will help first-time and move-up buyers enter the market.

  • Resale Market Impact – More new homes = slower price growth in some resale segments.

How Tariffs Could Affect Housing

  • Worst-Case Scenario (Downside Risk):

    • A 25% tariff on all exports could cause a recession, leading to job losses, lower consumer confidence, and reduced housing demand.

    • More homes for sale + fewer buyers = falling prices.

    • Even without a full trade war, economic uncertainty could make people hesitant to buy.

  • Best-Case Scenario (Upside Risk):

    • No major tariffs or exemptions for the energy sector could fuel stronger job growth, migration, and home sales.

    • Consumer confidence would rise, driving up housing demand and prices.

Full CREB - Forecast from Chief Economist Ann-Marie Lurie. report https://www.creblink.com/-/media/Public/CREBcom/Housing_Statistics/2025_Forecast/2025_Forecast_Report.pdf

Data is supplied by Pillar 9™ MLS® System. Pillar 9™ is the owner of the copyright in its MLS®System. Data is deemed reliable but is not guaranteed accurate by Pillar 9™.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.