Justin Trudeau announces his resignation as Prime Minister amid a housing affordability crisis, following his father's historic "walk in the snow" forty years ago. As housing costs and mortgage rates squeeze Canadian homeowners and renters alike, the Liberal Party faces record-low polling numbers. Potential successors Freeland, Carney, and Fraser must now address the party's troubled housing legacy and propose solutions to Canada's real estate challenges.

• Mark Carney's background in financial markets and monetary policy positions him as a strong contender to address Canada's housing market instability and mortgage affordability crisis
• The Trudeau government's housing initiatives, including the Home Buyers' Bill of Rights and attempts to curb foreign investment, largely failed to contain soaring real estate prices and rental costs
• As housing remains a top election issue, opposition parties are gaining ground with alternative housing platforms, promising to boost supply and address affordability through various policy measures

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Canada's rental market in 2024 saw record new construction and higher vacancy rates (2.2%), though still below historical averages.

New tenants faced 23.5% rent increases, while overall two-bedroom rents rose 5.4%. Despite more availability, affordability remained challenging as new construction focused on luxury units.

• Calgary led rent increases, while Toronto saw slower growth due to rent control and increased supply
• Calgary and Edmonton saw significant construction but longer vacancy periods
• Rent affordability remained a challenge, particularly in Ontario where payment delinquencies increased

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Despite current challenges, Canada remains positioned for growth, ranking among top G7 nations in GDP, population, and employment growth. Interest rates are expected to decline to around 2.25% by spring 2025, with the Bank of Canada aiming for a soft landing. The real estate market shows signs of recovery across various sectors, with investment volumes projected to reach $48 billion in 2025.

• Immigration policy changes will moderate economic growth, with temporary residents reducing from 7% to 5% of the population
• Commercial real estate shows sector-specific trends: office spaces prioritizing experience, retail expanding to secondary markets, and industrial market working toward normalization
• The investment market is projected to recover with improved sentiment and increased lending activity, though with more conservative underwriting approaches

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