Insight

April 17, 2025

How Real Estate Markets in the UK and Canada Are Evolving - And Why Now Is the Time to Act

What began as a cooling off after a pandemic-era boom has morphed into a dynamic reshaping of urban and suburban priorities, pricing structures, and buyer behavior.

For real estate professionals, whether you're a developer, broker, investor, or property manager, this isn’t just another market cycle. It’s an inflection point that presents a rare opportunity to redefine strategy and capture long-term value.

In this article, we examine key trends from both sides of the Atlantic, drawing from an in-depth study of the Canadian and UK housing markets from 2023 to mid-2025. And we’ll explore how forward-thinking businesses are using AI-powered lead generation, like those provided by Rooted Social, to drive revenue in this shifting landscape.

United Kingdom: Rebuilding Confidence in a Cautious Market

A Market Cooled, but Not Frozen

The UK housing market, once overheated by low interest rates and pandemic stimulus, has been reined in by rising borrowing costs. 2023 saw home prices dip slightly in areas like London and the South East, while more affordable regions like Manchester, Leeds, and Scotland fared better.

Yet, demand remains resilient, particularly in the rental market, where competition for properties is fierce.

Regional Growth Stories: North Is the New South

With London’s home prices out of reach for many and economic activity spreading more evenly across the country, the North of England is now commanding attention.

Cities like Manchester, Liverpool, and Newcastle are seeing rising investment interest, thanks to lower entry prices and robust demand for rental properties. Government infrastructure spending and university-driven population growth further reinforce their investment appeal.

Ownership vs Rental: The Shift in Mindset

Much like in Canada, the UK is seeing a generational shift away from ownership. Millennials and Gen Z buyers are waiting longer to buy, if they buy at all. This has strengthened demand in the private rental sector, especially for professionally managed, build-to-rent developments.

Developers and landlords who adapt to this demand shift will capture a new generation of tenants expecting smart technology, flexible leases, and top-tier amenities.

Canada: The Balancing Act of Growth and Affordability

A Country Growing Faster Than Its Housing Stock

Canada's population surged over the last two years, led by record-high immigration levels. With over 1 million newcomers arriving annually, cities like Toronto, Vancouver, and Calgary have experienced intensified housing demand, particularly in the rental sector.

But the supply side hasn’t kept pace. Chronic housing shortages and lengthy development timelines have pushed prices and rents up in many regions. Even as interest rates cooled the market in 2023, the combination of tight supply and population growth has prevented any significant price correction in major cities.

Urban vs. Suburban: The New Power Dynamic

Urban centres like Toronto and Vancouver, once viewed as untouchable in terms of price, have seen a plateau or modest price declines. In contrast, smaller urban markets and the Prairie provinces, Calgary, Edmonton, Saskatoon, have emerged as growth frontiers. These cities offer better affordability and are drawing both immigrants and internal migrants seeking value.

Meanwhile, suburban areas surrounding major metros are seeing renewed interest, as remote work and hybrid office setups become the norm.

The Rise of the Rental Nation

Rental demand is booming. With high mortgage rates pricing many out of ownership, Canada's national rental vacancy rate has dropped to a 20-year low. Rents, especially in major urban centres, have risen by double digits year-over-year.

For investors, this presents a lucrative opportunity in purpose-built rental developments, co-living spaces, and multi-family units.


Market Insights for Real Estate Businesses

Whether you're operating in Toronto or Birmingham, the message is clear. Real estate success now hinges on agility, data, and strategic outreach. Here's what today’s market requires:

  • Hyperlocal Strategy: National trends only tell half the story. Your edge lies in understanding micro-markets, how a neighbourhood 5 km away may outperform the city average, or how a shift in transit patterns reshapes property demand.

  • Data-Driven Decisions: Developers and agents who incorporate real-time data on demographics, migration, and buyer behaviour are closing deals faster and minimising vacancy.

  • Rethinking Product-Market Fit: Investors need to move beyond single-family homes and embrace diversified portfolios, co-living units, modular builds, BTR apartments, or rent-to-own models.

  • Digital-First Lead Generation: Buyers and renters aren’t walking into offices, they’re online. Capturing their attention and converting it into leads requires a digital strategy powered by precision.

Rooted Social: Your Lead Generation Partner for Real Estate Growth

At Rooted Social, we believe the success of real estate businesses in today’s climate isn’t just about knowing the market. It’s about reaching the right people at the right time with the right message.

Rooted Social specialises in AI-powered lead generation strategies tailored for the real estate sector. We help:

  • Real Estate Agents fill their sales pipelines with high-quality, ready-to-convert leads using targeted digital campaigns.

  • Developers and Property Managers attract renters and buyers faster by automating outreach and optimising advertising spend.

  • Investors and Asset Managers identify opportunities and connect with key market players using market-intelligence-led outreach.

Our tools analyse consumer behaviour, identify intent signals, and personalise outreach, helping you turn insights into revenue.

Whether you're launching a new project, scaling your property portfolio, or repositioning in a changing market, Rooted Social is your unfair advantage.

Conclusion: The Time to Act Is Now

The real estate markets in Canada and the UK are in flux, but also rich with opportunity. Investors who move decisively, developers who adapt creatively, and brokers who market smartly will shape the next phase of growth.

Don’t wait for the market to “return to normal.” The new normal is already here. Rental-led, tech-enhanced, data-driven.

Rooted Social is here to help you grow in this new era. Visit rootedsocial.co to learn how we can transform your lead generation, expand your reach, and unlock your next chapter of growth.

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