How Gen Z and Millennials Can Take Advantage of Canada’s Changing Housing Market

Canada’s housing market is entering a rare sweet spot—and younger buyers should be paying attention.

With the Bank of Canada announcing its seventh consecutive interest rate cut, now sitting at 2.75%, and real estate demand cooling across the country, many experts say this could be the most favourable moment in years for first-time homebuyers—especially millennials and Gen Z.

Here’s why the current market conditions might make 2025 your best chance to jump onto the property ladder.

Interest Rates Are Falling—and Could Drop Even More 📉

On March 12, 2025, the Bank of Canada cut its key lending rate by another 25 basis points. With U.S. tariffs increasing economic uncertainty, more rate cuts are expected, potentially pushing mortgage rates even lower by the end of the year.

Lower borrowing costs mean more affordable monthly payments—a crucial factor for first-time buyers.

Buyer Power Is Back: More Listings, Less Competition

According to the Canadian Real Estate Association, home sales dipped by 3.3% in January, while new listings jumped by double digits. That shift means less competition and more options for buyers—especially in major markets like Toronto, Vancouver, and the Fraser Valley.

Bidding wars have cooled, and the pressure on buyers has eased, giving first-time buyers more time to make informed decisions—and potentially negotiate better deals.

Urban Markets Could See a Rebound

While condo prices in major cities have softened due to excess supply, experts believe urban areas could bounce back as remote work declines and young professionals prioritize proximity to jobs.

A recent CMHC report noted that millennials are currently driving housing demand, and forecasted a recovery in urban sales activity throughout 2025.

Wealth Transfers + Higher Savings = More Buying Power

Despite ongoing affordability concerns, younger Canadians have seen significant wealth gains, especially among those who already own property. According to Statistics Canada, households with a highest earner under 35 saw their median net worth increase by 179% from 2019 to 2023.

Even for non-owners, a higher savings rate and intergenerational wealth transfers from baby boomers are helping support down payments and first-time purchases.

Takeaway: A Rare Opportunity with Smart Timing

There’s never a perfect time to buy a home—but in 2025, market conditions may be lining up in a way that tilts the odds in favour of first-time buyers.

With lower interest rates, less buyer competition, and a larger selection of homes, this could be a rare opportunity to break into the market—if you plan wisely.

But make no mistake: this window of opportunity may not stay open for long.

If you're thinking of buying your first home, now’s the time to:

• Get pre-approved ✅

  while rates are still dropping

• Explore neighbourhoods 🏘️

  that may have been out of reach during bidding wars

• Speak with a real estate professional 🤝

  who can help you navigate a shifting market

Ready to Take Advantage of This Market?

Whether you're looking to buy your first condo or a family home in a growing community, our expert team is here to guide you through every step.

Contact us today and let’s find your perfect fit while the market is still in your favour.

In a shifting market, the best opportunities go fast. With Faris VIP, you get priority access to hand-picked properties that match your goals—often before anyone else even knows they’re available. Get Access to Faris VIP.

Note: The information provided is based on current market trends and projections. Economic conditions can change, so it's advisable to consult with a real estate professional for the most up-to-date insights.