As 2024 draws to a close, it’s clear that it was a year of significant transformation for BC and Alberta’s real estate markets. Major policy shifts, a critical provincial election, and evolving buyer dynamics reshaped how developers, investors, and homebuyers navigate the market. From the Bank of Canada’s interest rate adjustments to changes in tax policy amidst a cooling real estate market, 2024 was defined by decisions with far-reaching consequences. 

Let’s take a look back at the top five stories of the year and what they could mean for 2025. 

1. BC’s 2024 Provincial Election: Housing Takes Centre Stage

The BC Provincial Election was arguably the most consequential event for the province’s real estate industry this year. Housing affordability dominated political discourse, driving promises to accelerate new home construction, ease development approvals, and expand rental housing initiatives. The election saw a fiercely contested race, with the BC NDP securing victory over a resurgent BC Conservative Party. Meanwhile, the collapse of BC United underscored the shifting political dynamics that characterized much of the election cycle. 

The NDP pledged sweeping reforms targeting both housing supply and market regulation, setting ambitious targets for new developments over the next decade. Their platform emphasized cutting red tape for developers, streamlining permitting processes, and expanding incentives for purpose-built rentals. Industry leaders are now watching closely as these policy promises transition from campaign rhetoric to actionable legislation with potentially transformative effects on BC’s real estate market. 

Read more about the 2024 BC Provincial Election 

 2. BoC Interest Rate Cutting Cycle Begins 

Following a period of aggressive rate hikes that strained affordability, the Bank of Canada’s interest rate-cutting cycle began in June 2024. After holding rates steady for six consecutive meetings, the BoC implemented five successive rate reductions aimed at stabilizing the economy and restoring consumer confidence, taking the overnight rate from 5% to 3.25% during the back half of the year. 

While lower borrowing costs offered potential relief for homebuyers, the market response was mixed. According to the Greater Vancouver Real Estate Board’s October 2024 report, sales activity showed modest improvement, though many buyers remained cautious due to broader economic uncertainty. Developers noted stabilizing interest in fall project launches, though market momentum was slower than anticipated in some segments. 

Looking ahead, further rate cuts in early 2025 could spur greater buyer activity—though developers remain cautious, balancing optimism with market volatility. 

Learn more about the Bank of Canada’s Rate Cuts 

3. BC’s New Flipping Tax Reshapes Investment Strategies 

BC’s new flipping tax, introduced in early 2024, reshaped investor behaviour by targeting quick property resales. The policy applies to homes sold within 12 months of purchase, with exceptions for life events such as job relocations or major family changes. 

The tax’s introduction led many speculative investors to exit the market or adopt longer-term holding strategies. Developers adjusted by emphasizing value retention and long-term investment stability in project marketing. 

While aimed at curbing speculation, the tax also spurred creative financing solutions and innovative sales strategies, such as rent-to-own and staggered payment plans. 

Explore the Implications of BC’s New Flipping Tax 

4. Calgary’s Boom: Population, Prices, and Potential 

Calgary’s real estate boom stole headlines throughout 2024, breathing new life into the Alberta market. The city attracted record-breaking interprovincial migration, thanks to its more affordable housing market, thriving economy, and emerging tech and energy sectors. 

With average home prices still considerably lower than in Vancouver or Toronto, Calgary became a top destination for both investors and relocating families. New developments focused on mixed-use communities and purpose-built rentals surged, fueled by investor confidence in the city’s long-term economic outlook. 

Calgary’s growth trajectory shows no signs of slowing down. With increased infrastructure investments and a robust job market, it remains a key real estate hotspot heading into 2025. 

Read More About Calgary’s Real Estate Boom 

5. Unintended Consequences of Kelowna’s Short-Term Rental Rules

Kelowna’s strict new short-term rental regulations, aimed at curbing housing shortages, created ripple effects across the city’s rental market. The rules limited short-term rental permits, imposed high fines, and set stricter zoning requirements. 

However, instead of boosting long-term rental supply, many property owners pulled their listings entirely or converted homes to seasonal rentals. This reduced housing availability year-round, highlighting the complexities of balancing housing policy with market realities. 

Kelowna’s experience offered critical lessons for other municipalities considering similar measures. Developers and investors should watch how local governments refine rental regulations in response to these impacts. 

Learn More About Kelowna’s Short-Term Rental Regulations 

Looking Ahead: 2025 Real Estate Outlook

The defining events of 2024 reshaped BC and Alberta’s real estate markets, setting the stage for an intriguing year ahead. With interest rates on a downward trajectory, major housing policies in the pipeline, and migration continuing to key cities like Calgary, the market is poised for further transformation in 2025. 

For developers, long-term planning will remain essential as they navigate shifting regulatory landscapes and evolving buyer expectations. Strategic investments in transit-oriented developments, mixed-use communities, and sustainable housing projects will be critical to staying competitive. Buyers and investors should prepare for a more dynamic market as demand is expected to increase in response to easing borrowing costs, with economists projecting further rate cuts well into 2025. However, lingering economic uncertainty and inflation pressures may temper short-term gains, emphasizing the importance of thoughtful, data-driven decision-making. 

Understanding these evolving market forces will be crucial to seizing new opportunities and staying ahead of industry trends in the coming year. As the market adapts to changing conditions, real estate professionals who remain proactive, flexible, and data-driven will be best positioned to navigate challenges and capitalize on emerging growth opportunities in 2025 and beyond.