Posted by Adam Chahl on Monday, October 13th, 2025 1:27am.
Vancouver’s housing market has long been known for its sky-high prices and fierce competition. But beyond the headlines, there’s a deeper story about life cycle housing in Vancouver — how people move through different homes as their life stages change. Ideally, a young adult starts as a first-time buyer, upgrades as their family grows, and eventually considers downsizing in Vancouver for retirement.
That natural progression — moving up or down the housing ladder — has become harder than ever in the Vancouver real estate market. This challenge affects everyone from new buyers and families to retirees and investors. Let’s break down why moving up or down in Vancouver’s housing market has become such a challenge, and what it means for homeownership in Vancouver going forward.
In most cities, housing transitions are smooth: first-time buyers enter the market, move-up buyers purchase family homes, and retirees downsize — keeping housing supply circulating. But in Vancouver, this ladder is largely stuck.
Fewer people are taking the next step. First-time buyers struggle to get in. Condo owners can’t afford to upgrade to a house. Seniors are staying put instead of selling. The result? A housing system where supply remains frozen, keeping prices sky-high.
In 2025, the average home price in Metro Vancouver sits around $1.14 million. Even after small market corrections, it’s still Canada’s least affordable city. Owning an average home costs roughly 90% of a typical household’s income, highlighting the depth of the housing affordability in Vancouver crisis.
These numbers show how difficult it’s become to make any move in this market — whether you’re trying to enter, climb, or exit the housing ladder.
For first-time buyers, affordability is the biggest barrier. High prices and strict mortgage qualification rules mean many young families can’t buy where they live or work.
Even with small interest rate drops in 2025, the gap between incomes and home prices remains enormous. Vancouver’s price-to-income ratio is among the worst in the country. Owning an average home often requires almost an entire household’s income — leaving little for other expenses.
Meanwhile, the Vancouver housing supply remains constrained. New builds are often luxury condos, not affordable starter homes. Many new developments are also purchased by investors rather than owner-occupiers. In recent years, roughly 40% of new homes in Vancouver were bought as investment properties rather than lived in.
This investor dominance drives up demand and prices for the same condos first-time buyers hope to purchase. Many young buyers are forced to look outside Vancouver — to Surrey, Langley, or the Fraser Valley — in search of affordability.
Those who manage to buy often rely on family help or settle for much smaller spaces than they’d like. It’s no surprise that Vancouver’s homeownership rate, around 62%, is one of the lowest in Canada.
Move-up buyers in Vancouver — people looking to upgrade from a condo to a townhouse or detached home — are facing a different challenge: the enormous price gap between property types.
A typical condo might sell for $750,000, while a detached home averages around $1.8 to $2 million. That jump is simply too steep for most families, even with strong equity in their condo.
Higher interest rates add another layer of difficulty. A buyer trading up from a 2.5% mortgage in 2021 to a 5.5% rate in 2025 faces a massive jump in monthly payments. Many homeowners decide to stay put, even if their home no longer suits their needs.
Additionally, the condo market has cooled more than the detached home market. Selling a condo may take longer or fetch less than expected, while desirable family homes remain expensive and competitive.
This creates a “lock-in effect.” Homeowners with low-rate mortgages and strong equity don’t want to sell, because their next mortgage would cost far more.
The result: move-up buyers in Vancouver are stuck. They can’t sell easily, and they can’t afford the next step. This stagnation reduces housing turnover, which in turn limits options for first-time buyers.
At the other end of the ladder are retirees and empty-nesters who would typically downsize in Vancouver. In theory, this should open family-sized homes for the next generation. In practice, many seniors are staying put.
Why? For one, they often dislike the downsizing options available. Trading a quiet detached home for a condo in a busy high-rise isn’t appealing. The loss of privacy, outdoor space, and independence can outweigh the convenience of a smaller home.
There’s also emotional resistance. Selling a long-time family home can feel overwhelming, both practically and emotionally. Many seniors have paid off their homes and face low carrying costs, so there’s little financial pressure to move.
Even if they do sell, property transfer taxes, moving costs, and high condo fees can make downsizing less financially attractive.
While 2025 has brought more balanced market conditions and new multi-unit housing options through zoning reform, downsizing remains rare. Most seniors prefer to age in place, relying on home-care services instead of moving to a smaller property.
This trend further tightens the Vancouver housing supply, keeping family homes off the market and limiting opportunities for younger buyers.
Every housing issue in Vancouver — from affordability to stagnation — ties back to one central problem: not enough supply.
Vancouver’s geography limits expansion, and decades of restrictive zoning policies have kept density low across large parts of the city. The result is a severe shortage of housing, especially in the “missing middle” — townhouses, duplexes, and affordable family homes.
According to housing reports, Vancouver needs at least 30% more new homes built over the next decade to restore affordability. Yet, in 2025, construction starts have slowed due to high costs, limited labor, and long approval timelines.
While new zoning reforms now allow more multiplexes and infill housing in previously single-family areas, it will take years for these changes to make a dent.
Meanwhile, population growth continues. Immigration remains high, and demand for homes — both ownership and rental — keeps rising. This mismatch between supply and demand means prices stay high, and movement within the market remains difficult.
Even investors, who play a major role in the Vancouver real estate market, can both help and hurt. They provide funding for new developments but also remove housing stock from the ownership pool when properties are kept as rentals or investments.
In short, Vancouver’s housing supply problem keeps the market gridlocked. Until that changes, moving up or down will remain a challenge.
After years of relentless growth, the Vancouver real estate market in 2025 has cooled. Interest rate hikes in 2022–2023 slowed sales and even caused minor price drops.
By late 2025, sales volumes are down roughly 20% compared to long-term averages. Homes are staying on the market longer, giving buyers a bit more leverage. However, “more leverage” doesn’t mean “affordable.” Prices have leveled off, not collapsed.
This market is now balanced — neither heavily favoring buyers nor sellers. Vancouver home prices in 2025 are slightly lower than their 2022 peaks but still far above what most locals can afford.
Condos have seen more significant price softening than detached homes, making them slightly more attainable for first-time buyers. This could help free up movement at the entry level of the housing ladder.
Interest rates are also starting to ease, improving borrowing conditions. Still, the affordability challenge remains. Even a small mortgage rate drop doesn’t offset years of price inflation.
Another notable trend is migration. More families are leaving Vancouver proper and buying in the suburbs, where prices are lower and space is more abundant. Areas like Langley, Port Coquitlam, and Maple Ridge have seen rising demand from move-up buyers in Vancouver seeking more value for money.
The bottom line? Vancouver remains one of the toughest housing markets in the country. Even in a slower market, affordability remains out of reach for many, and movement up or down the ladder is rare.
The difficulties in buying and selling a home in Vancouver aren’t just financial — they’re emotional.
For younger buyers, the dream of homeownership feels increasingly out of reach. For growing families, space constraints and rising costs create stress and frustration. And for retirees, the prospect of downsizing means leaving memories and communities behind.
These emotional barriers add to the stagnation in homeownership in Vancouver. When people hesitate to move, listings stay low, and the cycle continues.
Real estate agents across the city report that clients are taking longer to make decisions, exploring creative solutions like multi-generational living, co-ownership with friends, or keeping properties as rentals instead of selling.
This shift represents a new phase in Vancouver real estate trends — one where adaptability is key. Buyers and sellers alike are learning that the old model of “buy, move up, downsize” no longer fits the city’s reality.
Breaking the housing logjam in Vancouver requires bold action. Policymakers and developers are starting to take steps, but the pace of change must accelerate.
Here’s what could help improve life cycle housing in Vancouver over time:
Increase Supply Across All Segments
Encourage more development of missing-middle housing: townhouses, duplexes, and low-rise apartments in existing neighborhoods.
Simplify Zoning and Permitting
Streamline approval processes to speed up construction and reduce costs for builders.
Incentivize Downsizing
Offer tax breaks or exemptions for seniors who sell large family homes and buy smaller units, freeing up inventory for families.
Support Affordable Ownership Programs
Expand first-time buyer assistance and shared equity models to make entry-level homes more accessible.
Promote Multi-Generational and Co-Living Models
Support innovative housing models that allow families to share costs while maintaining independence.
These measures won’t solve Vancouver’s housing affordability crisis overnight, but they can help unfreeze the market and make the housing ladder functional again.
Life cycle housing in Vancouver once meant progression — from starter condo to family home to retirement suite. Today, it often means staying put.
First-time buyers can’t get in. Move-up buyers can’t afford the next step. Retirees don’t want to downsize. The result is a housing market that feels frozen in place, with limited opportunities for everyone.
Vancouver’s charm and quality of life continue to attract people, but unless the city addresses housing supply and affordability, the dream of smooth housing transitions will remain elusive.
For now, buying and selling a home in Vancouver requires patience, planning, and often compromise. Whether you’re moving up, moving down, or trying to get in, understanding these market forces is the first step toward making smart decisions in one of Canada’s toughest markets.
If you’re thinking about making a move — whether upgrading, downsizing, or buying your first home — expert advice can make all the difference.
Reach out to Adam Chahl and the PLACE Real Estate Team – Oakwyn Realty for honest guidance, local expertise, and a personalized strategy for your next step in the Vancouver real estate market.
1. What does “life cycle housing” mean in Vancouver?
Life cycle housing refers to how people move through different types of homes as their needs change—starting with a condo or starter home, upgrading to a family house, and eventually downsizing later in life. In Vancouver, that natural progression has become more difficult due to high prices, limited supply, and stricter mortgage qualification rules.
2. Why is downsizing in Vancouver so difficult right now?
Many retirees find the downsizing options unappealing or too expensive. Smaller, single-level condos and townhomes are limited, strata fees are high, and moving costs add up. This has led many homeowners to stay in their larger properties instead of selling, reducing available family homes for younger buyers.
3. What challenges do move-up buyers face in Vancouver?
Move-up buyers—those looking to upgrade from a condo to a townhouse or detached home—face a major price gap. Detached homes can cost more than double what a condo sells for, and higher mortgage rates make the jump even harder. Many are also hesitant to give up their low-interest mortgages, leading them to stay where they are.
4. How do 2025 market conditions impact first-time buyers?
Although prices have stabilized slightly, affordability remains a serious challenge. First-time buyers must save larger down payments, qualify under strict lending rules, and often look to surrounding cities for more affordable options. Condos remain the most realistic entry point for most new buyers.
5. What advice helps with buying and selling a home in Vancouver today?
Plan ahead and stay flexible. Get mortgage pre-approval early, align selling and buying timelines carefully, and explore bridge financing if needed. Consider townhomes or duplexes as alternatives to detached homes, and work with a local expert who understands current Vancouver housing trends and market timing.