How Migration and Returning Foreign Buyers Could Reheat Demand in BC’s Housing Market (2025)

British Columbia’s housing market has been shaped by many forces over the past decade, but two key drivers remain paramount in 2025: migration—both international immigration and interprovincial movement—and the potential return of foreign buyers after recent regulatory restrictions. For investors and homebuyers, understanding how these dynamics influence demand is crucial for making smart decisions in this evolving market.

---

The Migration Wave: 2024–2025 Immigration Trends

Canada has set ambitious immigration targets to address labour shortages and support economic growth. The federal government plans to welcome 485,000 newcomers in 2025, the highest target in recent history. British Columbia, and especially Metro Vancouver, is a prime destination for many newcomers due to its economic opportunities, cultural diversity, and lifestyle appeal.

According to the Real Estate Board of Greater Vancouver (REBGV) and British Columbia Real Estate Association (BCREA) reports from 2024, Metro Vancouver is expected to add approximately 55,000 new residents this year alone. This influx creates a natural increase in housing demand, particularly in more affordable suburban areas like Surrey, Langley, and Burnaby.

Read more: Renting vs Buying in Vancouver: Which Is Better in 2025?

Why This Matters for Housing Demand

• Newcomers tend to rent initially but transition to homeownership within 3–5 years, especially as they settle into careers and family life.
• Many immigrants prioritize family-friendly neighborhoods with access to schools, transit, and community amenities.
• Increased population growth puts pressure on the already limited housing supply, intensifying competition and driving prices upward.

---

Interprovincial Migration and Its Impact

Apart from international immigration, interprovincial migration also influences BC’s housing market. Recent years have seen residents from higher-cost cities like Toronto and Montreal relocating to BC for lifestyle reasons or remote work opportunities.

Data from Statistics Canada reveals that between 2023 and 2025, BC has seen a net gain of approximately 15,000 residents migrating from other provinces, many of whom settle in Metro Vancouver.

These migrants tend to be skilled professionals and families, which helps fuel demand for mid-to-upper-tier housing segments, including detached homes and townhouses.

---

Returning Foreign Buyers: What Has Changed?

Foreign buyers have historically been a significant factor in BC’s real estate market. However, to address housing affordability concerns, the provincial government introduced the Foreign Buyer’s Tax (FBT) in 2018, followed by extensions and clarifications in 2024.

Despite these restrictions, experts at RBC Economics anticipate a cautious return of foreign buyers in 2025 due to:

• Improved clarity and streamlined regulations reducing uncertainty
• Growing global wealth seeking safe and stable investments
• BC’s reputation as a safe haven with a strong economy and democratic governance

---

Expert Insight: RBC and BCREA Perspectives

Robert Hogue, Assistant Chief Economist at RBC, notes:

“While the Foreign Buyer’s Tax slowed foreign investment, it did not eliminate it. We expect a gradual return of foreign capital in 2025, particularly from buyers seeking long-term stability and rental income opportunities in Vancouver’s growing condo market.”

Meanwhile, Brendon Ogmundson, Chief Economist at BCREA, adds:

“Immigration remains the backbone of housing demand growth in BC. The combination of new migrants and returning foreign investors will create upward pressure on prices, especially in suburban markets where supply is constrained.”

---

What Does This Mean for Investors?

1. Increased Competition in Suburban Markets

The migration trend is driving heightened interest in areas outside of Vancouver’s core, including Surrey, Langley, and Coquitlam. These areas offer comparatively affordable options and larger homes, appealing both to new immigrants and foreign buyers looking for rental income or value appreciation.

2. Opportunity in Purpose-Built Rental and Condo Markets

With many newcomers initially renting, the purpose-built rental sector remains a lucrative investment. Furthermore, the condo market in Metro Vancouver—especially in neighborhoods near transit corridors—offers opportunities for investors to benefit from both rental income and future price appreciation as demand rebounds.

3. Watch Government Policy Closely

Investors should stay informed about potential changes to foreign buyer policies, speculation taxes, and vacancy taxes, as these can impact market dynamics and returns.

---

How Buyers Can Prepare

• Understand financing options: Newcomers and returning buyers should work with lenders familiar with foreign income verification and non-resident lending policies.
• Focus on growth corridors: Neighborhoods slated for transit expansions or community revitalization often see faster appreciation.
• Work with knowledgeable Realtors: Local agents can provide up-to-date market insights and help navigate complex regulations.

---

Conclusion: Migration and Foreign Buyers as Demand Catalysts

In 2025, BC’s housing market demand is set to be significantly influenced by continued strong immigration, interprovincial migration, and a cautious return of foreign buyers. For investors, this combination signals ongoing opportunities—especially in suburban and transit-oriented communities.

For homebuyers, understanding these forces can help anticipate market shifts and position themselves for success in a competitive environment.

---

Sources

• RBC Economics Canadian Housing Outlook (2024–2025)
• British Columbia Real Estate Association (BCREA) Market Reports
• Real Estate Board of Greater Vancouver (REBGV) Housing Data
• Statistics Canada Migration Data
• Interviews with Robert Hogue (RBC), Brendon Ogmundson (BCREA)

---

Written by Vancouver Home Hub — your trusted guide to the Metro Vancouver real estate market with expert data, insights, and actionable advice.