Best Places to Live and Invest in British Columbia – Summer 2025 Real Estate Outlook

British Columbia remains one of the most desirable provinces in Canada for both real estate investment and quality of life. This 2025 outlook examines housing trends, healthcare access, employment strength, educational opportunities, and Indigenous land considerations—all vital factors for homebuyers, sellers, and investors. Data has been sourced from the Canadian Real Estate Association (CREA), BC Stats, the BC Financial Services Authority (BCFSA), and expert insights from provincial economists.

According to Bryan Yu, Chief Economist at Central 1 Credit Union, “Despite affordability concerns, British Columbia’s long-term fundamentals remain among the strongest in Canada due to its diversified economy and high demand for residential property.”

Key Highlights:

• BC's economy remains resilient, driven by tech, clean energy, and tourism.

• New housing legislation introduced in 2024 now overrides municipal zoning in transit corridors to accelerate multifamily housing approvals.

• The province has expanded its speculation and vacancy tax zones, now applying to additional communities including Kamloops and Vernon, to curb investor-driven price pressures.

• Affordability remains a top concern in Metro Vancouver.

Top Cities for Real Estate Investment and Lifestyle in BC

1. Kelowna

Kelowna continues to draw buyers and investors thanks to its strong tourism industry, tech sector growth, and vibrant lifestyle. Real estate is more affordable than Vancouver but rising steadily, with significant demand for both short-term rentals and long-term housing.

2. Kamloops

An emerging market with affordable housing and growing infrastructure. Kamloops was recently added to BC's expanded speculation and vacancy tax zone, which may moderate investor activity but also reflects rising housing demand. Kamloops is increasingly seen as a desirable destination for retirees, families, and remote workers.

3. Nanaimo

Located on Vancouver Island, Nanaimo offers oceanfront living, expanding ferry and airport connections, and consistent rental demand. It is ideal for lifestyle investors.

4. Victoria

As the provincial capital, Victoria offers government stability, excellent healthcare facilities, and a consistent rental market. It remains expensive but delivers strong long-term value.

5. Abbotsford & Chilliwack

Fraser Valley communities are growing fast due to their proximity to Vancouver and relative affordability. They attract first-time buyers and investors seeking development potential.

British Columbia Regional Risk and Investment Matrix – 2025

Region	Market Stability	Economic Outlook	Healthcare Access	Education Quality	Real Estate Opportunity
Vancouver	High	Strong	Moderate	High	Low
Victoria	High	Strong	High	High	Moderate
Kelowna	High	Strong	Moderate	High	High
Kamloops	Moderate	Growing	Moderate	Moderate	High
Nanaimo	High	Strong	Moderate	High	High
Abbotsford	Moderate	Growing	Moderate	Moderate	High
Chilliwack	Moderate	Growing	Moderate	Moderate	High
Prince George	Moderate	Resource-Tied	Moderate	Moderate	Moderate
Surrey	High	Strong	Moderate	High	Moderate
Langley	High	Strong	Moderate	High	High
Burnaby	High	Strong	Moderate	High	Moderate
Richmond	High	Strong	Moderate	High	Moderate
Cranbrook	Moderate	Niche Growth	Limited	Moderate	Moderate
Terrace / Kitimat	Moderate	LNG-Driven	Limited	Moderate	Moderate–High (industrial)
Parksville / Qualicum	Moderate	Stable	Moderate	Moderate	High (retiree appeal)

Legend:

• Market Stability: Measures economic resilience, housing demand, and pricing volatility

• Economic Outlook: Reflects sector growth (tech, tourism, energy, etc.) and job market strength

• Healthcare Access: Considers wait times, availability of services, and regional staffing

• Education Quality: Based on access to universities, colleges, and K-12 performance

• Real Estate Opportunity: Reflects affordability, growth potential, and infrastructure investment

Recent Policy Impacts on Real Estate

• Zoning Reform: The 2024 housing legislation mandates municipalities to permit denser, multifamily housing within transit-oriented development areas, increasing development potential near SkyTrain and bus corridors.

• Speculation and Vacancy Tax Expansion: To address housing shortages, BC has added more regions to its speculation tax program, which now targets homes left vacant in cities like Kamloops, Vernon, and Parksville.

Key Considerations to live and invest in British Columbia

As BC’s real estate landscape evolves, buyers and investors must account for new provincial regulations and regional risks that directly affect property values and investment outcomes:

• Affordability: Metro Vancouver remains Canada’s least affordable market.

• Property Taxes: Among the lowest in Canada (Vancouver average: 0.28%).

• BC Flipping Tax (Effective 2025): A 20% tax applies to profits from homes sold within 12 months, decreasing to 0% after 24 months. This discourages short-term speculation and affects resale timing strategies.

• Expanded Speculation & Vacancy Tax: Now includes cities like Kamloops, Parksville, and Vernon. Applies to properties left vacant, affecting holding strategies for investors and second-home buyers.

• Municipal Development Cost Charges (DCCs): Many cities, including Vancouver, Surrey, and Kelowna, have raised DCCs to fund infrastructure. These fees impact the final cost of new builds and redevelopment.

• Insurance & Climate Risk: BC’s high wildfire and flood zones—especially in the Okanagan, Cariboo, and Vancouver Island regions—are causing rising insurance premiums and reduced coverage availability.

• Reverse Vesting Orders (Insolvency): Increasingly used in BC real estate restructuring cases. These can shift how distressed properties are sold and raise concerns around transparency and property transfer taxation.

• Investor Ownership Rates: In Vancouver, nearly half of all condos are investor-owned, which continues to influence housing prices, vacancy rates, and policy response in the multi-family market.

• Hidden Costs in Strata Purchases:Special levies, aging building repairs, and reserve fund shortfalls are common in BC’s condo market. Buyers should review depreciation reports and contingency fund status carefully.

Leased Land in British Columbia

Leased land is a significant consideration for real estate buyers across British Columbia, particularly on Indigenous reserve lands. While most prevalent in southern BC—notably in Westbank First Nation (Kelowna), Musqueam and Tsleil-Waututh (Vancouver), Tsawwassen, Sechelt, and parts of Vancouver Island (e.g., Tofino, Nanoose Bay)—leased land arrangements also exist in northern regions, including areas near Terrace, Prince Rupert, Smithers, and Fort St. John where developments intersect with unceded or reserve territories.

In these leasehold situations, buyers typically own the home or improvements but lease the land from a First Nation or government authority, often under long-term agreements (commonly 30 to 99 years). Leased properties can be more affordable upfront, but they come with unique challenges:

• Lease duration & renewal terms affect long-term value and financing.

• Annual lease payments add to carrying costs and may escalate.

• Mortgage restrictions: Some lenders limit amortization terms or require higher down payments.

• Resale complexity: Leased land can impact marketability, especially as leases near expiry.

Additionally, in northern BC, land tenure issues may be tied to active Indigenous land claims or resource development consultations, making legal clarity even more important. Buyers should consult with a real estate lawyer and work with agents experienced in leasehold and Indigenous land contexts to fully understand the obligations and risks before purchasing.

British Columbia offers one of the most balanced long-term investment and lifestyle environments in Canada. While affordability in Vancouver remains a barrier, markets like Kelowna, Kamloops, and Nanaimo provide promising alternatives with strong infrastructure, lifestyle appeal, and economic resilience. Investors must consider climate resilience, and municipal growth plans to optimize returns and reduce risk.

This analysis is for informational purposes only. Readers should consult licensed professionals before making investment decisions.