Canada's Best and Worst Real Estate Markets of 2025: Where to Invest for Growth and Affordability

Canada's real estate market showed a significant recovery in 2024, driven by falling interest rates. As economic uncertainty looms in 2025, Zoocasa and MoneySense have released their annual report to help investors find the best and worst markets for real estate investment.

Real EstateInvestmentCanadaAffordable CitiesMarket TrendsReal EstateMay 24, 2025

Canada's Best and Worst Real Estate Markets of 2025: Where to Invest for Growth and Affordability
Real Estate:Canada’s real estate market made a notable recovery in 2024 after a turbulent start, driven largely by falling interest rates that re-energized homebuyers across the country. As buyers returned to the market, they turned away from major metros and focused on smaller, more affordable cities offering better value, less competition, and promising returns.

Now, with economic uncertainty looming in 2025—from rising global tariffs to fears of a recession—many Canadians are once again asking: Where can I invest in real estate and still get solid value for my money?

To answer that, Zoocasa and MoneySense have released their annual “Where to Buy Real Estate in Canada” report for 2025, analyzing 44 regions across the country. The rankings consider home prices, recent growth trends, local income levels, and livability metrics like safety and access to healthcare.

Top Cities for Real Estate Investment in 2025

1. Fredericton, New Brunswick
Fredericton leads the national rankings with a winning mix of low home prices and high long-term growth. The average home price sits at $310,925—more than $400,000 below the national average. With a strong 72% five-year price increase and a respectable median income of $69,000, Fredericton offers unmatched affordability and value in a safe, family-friendly setting.

2. Calgary, Alberta
Calgary lands in second place, backed by solid income levels and growing market strength. The average home price is $577,367, paired with one of the highest median after-tax incomes in Canada at $87,000. The city has seen 41% growth over five years and continues to deliver strong healthcare and safety rankings, making it an attractive long-term investment.

3. Saint John, New Brunswick
Saint John rounds out the top three, offering buyers one of Canada’s lowest barriers to entry. With an average price of $311,225 and a 71% five-year growth rate, this coastal city is becoming increasingly appealing. Despite lower median incomes at $56,800, the city’s strong health care infrastructure and affordability give it lasting appeal.

Lowest-Ranked Markets for 2025

1. Fraser Valley, British Columbia
Despite its natural beauty, Fraser Valley ranks at the bottom for value. Average home prices sit near $1 million, yet recent growth has been weak, with a 1% annual decline. A low safety index and rising costs weigh down the region’s appeal, leaving it with a value score of just 1.95.

2. Quinte and District, Ontario
Quinte ranks 43rd due to its sluggish growth and weaker infrastructure. The average home price is $575,100, but growth over three years is only 4%. Safety and healthcare scores are low, and services have not kept pace with demand.

3. Bancroft and Area, Ontario
Bancroft finishes last in the rankings, held back by affordability issues and poor public services. Despite leading five-year growth at 81%, recent gains have slowed, and the region has the lowest safety and healthcare scores in the nation. With a modest income average of $52,800 and home prices over $517,000, it remains a tough choice for most buyers.

While this data gives insight into national trends, the right home ultimately depends on individual goals. Whether you’re looking for growth potential, quality of life, or just a great deal, understanding where your money goes furthest is key.

If 2025 is your year to buy, connect with a Zoocasa expert and explore your options in Canada’s most promising real estate markets.

Frequently Asked Questions

What factors are considered in the real estate rankings?

The rankings consider home prices, recent growth trends, local income levels, and livability metrics like safety and access to healthcare.

Which city is ranked highest for real estate investment in 2025?

Fredericton, New Brunswick, is ranked highest for real estate investment in 2025.

What are the main drawbacks of investing in the Fraser Valley, British Columbia?

The main drawbacks of investing in the Fraser Valley include high average home prices, weak recent growth, a low safety index, and rising costs.

How does Calgary, Alberta, perform in the real estate rankings?

Calgary, Alberta, ranks second in the real estate rankings, backed by solid income levels and growing market strength.

Why is Bancroft and Area, Ontario, ranked last in the report?

Bancroft and Area, Ontario, is ranked last due to affordability issues, poor public services, and low safety and healthcare scores.

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