Why Vancouver’s Housing Market Matters

Canada’s housing crisis is hitting Vancouver hard. The Canada Mortgage and Housing Corporation (CMHC) says we need 3.5 million new homes by 2030 to meet demand. Without action, prices could skyrocket, making it tougher for families, first-time buyers, and investors to enter the market.

A new study from Concordia University, titled "Breaking Ground: AI-Driven Analysis of How Policy Reform Can Unleash Canadian Housing Supply", uses artificial intelligence to explore solutions. Let’s break down what it means for Vancouver.

What’s Driving Home Prices?

The study used AI to analyze data from 2017 to 2025, looking at population growth, building costs, and regulations. If nothing changes, Vancouver’s median home price could hit $2.8 million by 2032—up 133% from today’s $1.2 million average, based on recent Greater Vancouver market reports.

But there’s hope: Policy changes could stabilize prices at around $2.5 million (a 108% increase). This still means growth, but it’s more manageable for buyers and investors.

Policy Reforms: A Path to More Homes

The study highlights simple fixes that could boost home building:

• Easing building rules by 10% could add 10% more homes each year.
• Speeding up approvals by 10% could add another 3%.

For Vancouver, where demand is high due to population growth and limited land, these changes could mean more apartments and homes, easing the shortage. But watch out: A 10% rise in costs (materials, labor, taxes) could cut new homes by 25–35%, especially apartments.

Why Vancouver Is Unique

Vancouver’s market thrives on demand from locals and immigrants, but global issues like U.S. tariffs on materials add pressure. The study says no single fix works for every city—Vancouver needs a custom plan, with governments, builders, and communities working together.

My Take: Reza Hamzehali on Vancouver’s Market

As Reza Hamzehali, founder of xhouse.ca, I’ve seen Vancouver’s market shift over the years. The past couple of years were slow, with high interest rates cooling prices. But things are looking up.

Canada’s population is growing, bringing more buyers. Global tensions, like wars, are easing, and U.S. tariffs might stabilize. I believe we’re at the bottom of housing prices now. If no surprises hit, expect a lively market by the end of 2025, with more sales and steady growth. Now’s the time to explore opportunities—check out our listings or reach out for a chat.

A Brighter Future for Vancouver

Building more homes is just one piece of the puzzle. We also need to tackle labor shortages and rising costs. Spreading growth to other cities could ease pressure on Vancouver. Want to dive deeper? Read the full Concordia study here.

What’s your take on Vancouver’s housing future? Share your thoughts below!