The proptech industry is entering a new era, with AI emerging as a key driver of innovation across the real estate industry, according to a new report from Proptech Collective.

The non-profit organization analyzed more than 530 active startups and found that the sector is adapting to market shifts with a sharper focus on efficiency, integration and long-term value creation.

AI: A game-changer in proptech

AI is reshaping proptech by enhancing automation, predictive maintenance and property management. Companies are prioritizing data governance, system architecture and AI strategy development to ensure responsible implementation. AI-driven tools are also transforming planning, risk management, and energy optimization, improving operational efficiency across residential, commercial, and construction sectors.

Key proptech trends for 2025

As the industry looks ahead, several emerging trends are set to shape the future of proptech:

Integrated transactions

Homebuyers and sellers are demanding more seamless, efficient processes. Companies are digitizing and consolidating financing, insurance and transaction management, reducing friction for consumers and Realtors. AI is also streamlining the lead-to-lease process, automating lead generation and tenant screening.

Modular and offsite construction

Facing labour shortages and rising costs, the construction industry is shifting towards offsite construction and prefabrication. The report highlights that assembling components in controlled environments reduces timelines, improves quality control, and enhances scalability. Government initiatives, such as funding for modular housing, are supporting this shift.

Decarbonization and grid infrastructure

Sustainability is no longer just a regulatory requirement but a core financial strategy. Asset managers are prioritizing energy-efficient buildings to drive profitability. The report highlights the increasing demand for sustainable energy solutions, as data centers—driven by AI adoption—place greater strain on grid infrastructure. AI is being used to optimize energy consumption and automate HVAC systems to reduce carbon footprints.

Industry consolidation and sustainable growth

Over the past decade, the proptech industry saw an explosion of standalone solutions, leading to fragmented experiences. Now, companies are focusing on platform integration and consolidation. Mergers and acquisitions (M&A) are accelerating this trend, with over 65 M&A transactions recorded in the last five years, with three happening in the first few weeks of January.

Despite economic headwinds, Canada remains a leader in real estate innovation, with Toronto, Vancouver, Montreal, Calgary, and Kitchener-Waterloo serving as key hubs. The report notes that 77 per cent of Canadian proptech startups were founded in the last decade, with 35 per cent emerging in the past five years. Startups are prioritizing unit economics and sustainable business models to navigate tighter funding conditions while continuing to innovate.

“As we start 2025, it really feels like proptech is entering its next era,” says Stephanie Wood, report lead at Proptech Collective and vice president at Alate Partners.

“The Canadian real estate industry faced a transformative moment in 2024,” said Fred Cassano, real estate leader at PwC Canada. “Tight financing and rising costs continue to challenge growth, but sustainability and technology are creating new opportunities.”

Vancouver Realtors with an active Instagram presence are selling more homes and doing it faster, according to a new study from Simon Fraser University and Roomvu. 

The study analyzed more than 63,000 transactions from the Greater Vancouver Realtors’ MLS from mid-2021 to mid-2024 and found that agents who maintain an active Instagram profile see significantly higher sales volumes and lower days on market (DOM) compared to their less social media-savvy peers.

According to the study, agents using social media were found 15 per cent more likely to improve their sales performance.

The numbers behind the trend

The research, led by SFU Assistant Professor of Quantitative Marketing Miremad Soleymanian and commissioned by marketing firm Roomvu, combined multiple datasets, including:

• 63,200 MLS transactions (2021 to 2024)
• Performance data for 13,698 Realtors
• Instagram activity data for 2,639 Realtors

Of the nearly 14,000 agents analyzed, only 19.3 per cent had a measurable Instagram presence. Despite this, those who actively used the platform had clear performance advantages, particularly in expanding their market reach and reducing the time it takes to sell homes.

More followers, more sales?

So, does follower count matter? The study found that a standard deviation increase in network size—measured by followers, likes and general reach—correlated with 2.1 additional sales over four years and 5.3 fewer DOM. This suggests that having a larger audience can translate into faster and more frequent transactions.

While engagement metrics like comments and likes have some impact on sales, network size had a stronger influence. The study explains that “…prioritizing follower growth and regular posting frequency over engagement optimization provides the strongest returns in terms of market performance.” 

Beyond just selling faster, agents with a strong Instagram presence were also able to extend their geographic market coverage. A standard deviation increase in social media reach correlated with activity in 1.7 more unique sub-areas, meaning that well-connected agents were able to conduct business in a wider range of neighbourhoods.

Four types of Instagram agents

The study categorized real estate agents into four distinct social media strategy groups:

• Balanced engagers – moderate following with steady engagement
• Minimal participants – low follower count, sporadic activity
• High engagement specialists – moderate following but high engagement
• Mass following leaders – the biggest networks, highest posting frequency, and the best sales performance

The best-performing agents fell into the “mass following leaders” category, according to the study. This group showed a 15 to 20 per cent higher chance of improving their sales year-over-year compared to those with no social media presence.

Social media’s long-term impact

The research also highlights a growing trend: social media has become increasingly effective over time. Realtors with an active presence on Instagram saw stronger performance growth after January 2023 compared to earlier periods.

Sam Mehrbod, CEO and co-founder, Roomvu, explains, “It’s surprising that the real impact of social media only started showing up after 2023. Even more surprising is that it took nearly four years for social media to significantly influence listing-side results. This proves social media’s impact isn’t instant—it builds over time.”

This effect was most pronounced in seller-side transactions, reinforcing the idea that Instagram can be an especially powerful tool for listing agents looking to market properties.

“This study makes one thing clear—Realtors need to stay consistent with social media,” Merhbod says. “If you think one viral video will bring you a flood of listings, you’re in for a shock. It takes years of steady posting before you see real, measurable results.”

In a major move to tackle one of real estate’s most time-consuming challenges, FCT has acquired a majority stake in Fintracker, a digital identity verification solutions company.

The Oakville-based company announced the news on Jan. 28, saying the partnership is poised to streamline compliance with KYC and anti-money laundering (AML) regulations while enhancing security and efficiency in real estate transactions.

“Fintracker’s advanced identity verification technology, combined and integrated with our trusted services, will help create a more secure, seamless, and fully compliant experience for all stakeholders while shaping the future of connected and intelligent identity verification processes.,” says Michael LeBlanc, CEO, FCT.

Fintracker has contracts with many of Canada’s real estate boards and brokerages, including TRREB subsidiary PropTx. 

Why Fintracker?

Founded by former Realtor Simon Fiore, Fintracker was born out of a need to simplify the tedious FINTRAC compliance process. In a 2023 interview with Real Estate Magazine, Fiore shared that the idea for Fintracker originated in his Winnipeg brokerage. “I was like many agents struggling with these forms and not handing them in in a timely fashion,” Fiore said. His initial goal was to solve the problem for his own brokerage, but the solution gained traction.

The platform has since evolved into a tool for completing FINTRAC forms, digitizing workflows and reducing the potential for human error. During the pandemic, its ability to facilitate remote identity verification for non-physically present clients made it an important tool for many brokerages.

A shared vision for the future

With Fintracker’s solutions now integrated into its operations, FCT says its goal is to create a “connected identity ecosystem” that accelerates the home-buying process while safeguarding sensitive personal data. Fintracker’s founders, Fiore and CTO Matt Amihude, will continue leading the company as it expands under FCT’s umbrella.

“Partnering with FCT enables us to scale our mission of simplifying compliance for agents and brokerages across Canada,” says Fiore. “Our shared vision is to minimize friction for both the public and our clients, while raising the bar for KYC and AML compliance. Together, we’re fostering greater trust, transparency, and efficiency in real estate transactions.”

Fiore, who described himself as “the least tech-savvy agent in the country” when he started Fintracker, believes there’s no replacement for human relationships in real estate.

“Technology is always going to try and replace us, but one-on-one and face-to-face interactions, gaining trust and building relationships are still the keys,” Fiore told REM.

By most projections, the Canadian housing market is expected to see modest sales and price gains in 2025, but “it’s still a long way back to the 2022 highs,” according to BMO Senior Economist, Robert Kavcic. 

In BMO’s housing outlook for 2025, Kavcic predicts national home prices won’t push past 2022 levels until 2029 under the bank’s base-case scenario.

Modest growth in sales and prices

According to the report, sales volumes are expected to rise 12 per cent this year, driven by a rebound from the “depressed” levels of the previous year, while the benchmark home price is forecasted to climb a modest 4 per cent “as still-challenging affordability and investment calculus will keep the rebound in check.”

Regionally, Southern Ontario and British Columbia—markets that saw some of the sharpest declines—are expected to recover, while Alberta and Atlantic Canada, which outperformed during the pandemic, are likely to see more tempered growth. 

BMO highlights a sharp contrast in performance within major cities like Toronto, where single-detached homes are in demand but, as we’ve heard repeatedly, the condo market faces mounting pressure due to an influx of new units hitting the market. “Look for condo prices to struggle in 2025 even if the single-detached market improves further,” the report states.

Mortgage rates near cycle lows

Mortgage rates are another critical factor shaping the housing market in 2025. BMO notes that most of the Bank of Canada’s current rate-cut cycle has already been priced into fixed mortgage rates, which are now in the low-to-mid 4 per cent range. Kavcic adds, “There is room for variable rates—currently around 4.7 per cent—to test the 4 per cent level, which would be an important psychological and valuation barrier, but the Bank will have to continue easing.”

New mortgage rules implemented in December “should incrementally ease conditions into the spring season.” These include an increase in the price cap for insured mortgages, from $1-million to $1.5-million, and the extension of 30-year amortizations to first-time buyers and purchasers of new homes. Kavcic expects these changes could make housing more accessible, particularly in larger markets where lower-end single-family homes and larger condos often fall within the updated price range.

Challenges in affordability and investment

Despite these positive trends, affordability remains a significant challenge. Kavcic is calling for sub-4 per cent borrowing costs: “If we plug 3.9 per cent mortgage rates and a 30-year amortization into our affordability calculator, we get back into the realm of what was sustained pre-pandemic, assuming prices remain at current levels.”

The economist says this scenario could allow room for prices to rise modestly without (again) running into affordability constraints. 

A cooling rental market

There are notable shifts happening in the rental sector. A combination of reduced immigration targets and an influx of new rental supply is driving down rents in major markets. The report cites data from Rentals.ca, showing a “near double-digit decline in 1-bedroom Toronto apartments.” This trend is expected to continue through 2025, with higher vacancy rates and falling rents bringing relief to renters.

Long-term outlook

Looking ahead, BMO underscores that the Canadian housing market is in the middle of a “prolonged period of consolidation.” Kavcic compares the current trajectory to past corrections, including the deep housing downturn of the 1990s. While today’s economic conditions differ significantly, the demographic and financial pressures on the market are reminiscent of that era.

“Suffice it to say, this was an extraordinarily bullish trio that won’t be repeated,” referring to the convergence of low interest rates, peak millennial demand and record immigration that fueled the 2022 highs. With these forces now dissipating, the road ahead is one of gradual recovery rather than “exuberant” growth.

It’s official—Realtor.ca is now a standalone, wholly-owned taxable subsidiary of the Canadian Real Estate Association. On Jan. 6, the entity was legally formed and governance now falls to its transition board of directors.  

As part of the change, Patrick Pichette, who has served as vice president of Realtor.ca for over six years, has been named interim CEO following the board’s first meeting earlier this week.

The restructuring is intended to provide Realtor.ca with greater operational flexibility, enabling the platform to pursue additional revenue opportunities and invest in further development, CREA says. 

“I’m honoured to continue to lead the exceptional Realtor.ca team and look forward to building on the incredible momentum of the past several years. REALTOR.ca is an indispensable resource and I believe deeply in the value the platform generates for the Canadian real estate ecosystem,” says Pichette.

The national association explains the transition to a taxable subsidiary comes in response to growing competition, evolving consumer expectations and increasing operational costs. CREA says it aims to reduce its reliance on member dues while maintaining Realtor ownership and reinvesting profits into the platform.

The influx of 471,771 new permanent residents in 2023—and a targeted 485,000 for 2024—was a transformative force in driving luxury real estate demand across Canada’s major cities, according to the Sotheby’s International Realty Canada Top-Tier Real Estate: 2024 State of Luxury Annual Report. The Bank of Canada’s monetary easing, which began in June, further fueled market momentum.

Although affluent buyers are less affected by mortgage rates, successive interest rate cuts enhanced consumer confidence and facilitated movement from conventional markets into entry-level luxury segments.

By October 2024, home sales activity across Canada’s MLS systems climbed 7.7 per cent month-over-month—the highest since April 2022—followed by another 2.8 per cent increase in November. The Bank of Canada’s December rate cut of 50 basis points to 3.25 per cent is expected to further energize the market in 2025.

“Canada’s conventional and luxury real estate market demonstrated remarkable resilience in 2024 and closed the final quarter of the year with a pick-up in sales activity that foreshadows further improvement in the months ahead,” said Don Kottick, president and CEO of Sotheby’s International Realty Canada, in a press release.

Greater Toronto Area (GTA)

The GTA led Canada’s luxury market resurgence, with sales over $4 million rising 21 per cent year-over-year in 2024. Single-family homes dominated, making up 91 per cent of luxury sales in this segment. Ultra-luxury sales over $10 million increased 20 per cent, supported by a mix of MLS and private transactions.  

Calgary

Calgary experienced the fastest growth in luxury sales among Canada’s major cities. Sales over $1 million surged 42 per cent, while those over $4 million doubled year-over-year. Single-family and attached homes saw the steepest increases, reflecting a population-driven demand boom.  

Montreal

Luxury sales in Montreal showed notable resilience, with $4 million-plus sales up 16 per cent and $1 million-plus transactions rising 38 per cent. The city reported strong growth across all housing types, with condominiums seeing a 53 per cent increase.  

Vancouver

Vancouver’s luxury market lagged in 2024 due to misaligned seller expectations and a softer local economy. Sales over $4 million declined 11 per cent, while ultra-luxury transactions over $10 million fell 29 per cent. However, $4 million-plus condominium sales rose 26 per cent, reflecting an emerging opportunity in this segment.  

The bottom line

Kottick highlighted Toronto and Montreal’s revitalization as a model for national market improvement, driven by realistic pricing and falling interest rates. He also noted that Calgary continues to lead expansion in top-tier housing sales, putting unprecedented pressure on housing supply and prices.

Kottick contrasted this with a weaker picture of Vancouver’s economy, and “the ongoing standoff between sellers clinging to peak-era valuations and buyers demanding prices that reflect today’s reality” that’s slowing Vancouver’s market.

He also emphasized the long-term investment potential of luxury condominiums in Toronto and Vancouver, where declining prices and low competition create favourable conditions for buyers. As population growth intensifies housing demand, these markets are poised for future gains.  

Canadians are increasingly committed to homeownership this year, more so than in 2024, a recent survey by Wahi reveals.

“The message from many Canadians is clear—they’re going to do what it takes to step onto the property ladder,” said Wahi CEO Benjy Katchen in a press release. “While lower interest rates and new mortgage rules have improved housing affordability somewhat, many Canadian homebuyers are taking a more proactive approach.”

Key findings

Results from the second-annual Homebuyer Intentions Survey of Angus Reid Forum members show almost 17 per cent of Canadians say they will probably buy a home this year. Millennials took the lead with 23 per cent, followed by Gen Z (20 per cent), Gen X (18 per cent) and baby boomers (10 per cent).

Canadians are spending less, with 52 per cent of prospective buyers planning to cut back, a 7.0 per cent increase from 2024.

As well, 31 per cent of respondents intend to change their investment strategies, from 21 per cent the prior year. 30 per cent of respondents will work longer hours, whereas 21 per cent indicated so in 2024, while 10 per cent would consider gig work or side jobs, up from 8.0 per cent the previous year.

How first-time vs non-first-time homebuyers compare

The survey found first-time homebuyers were more flexible with making concessions to afford a home than experienced homebuyers: 59 per cent were willing to reduce spending compared to 47 per cent of non-first-time homebuyers, while 37 per cent would change their investments compared to 27 per cent of non-first-time homebuyers.

37 per cent of first-time buyers were open to working longer hours to buy a home, while 24 per cent of non-first-time buyers said the same.

Willingness to relocate

The survey found that 73 per cent of all prospective buyers would consider different neighbourhoods, 57 per cent would consider a different style or type of home and 55 per cent were comfortable living farther from amenities like schools and stores.