The forecast for 2025 signals significant transformations across multiple sectors, driven by consumer behavior shifts, economic conditions, and geopolitical challenges. Key industries such as real estate and retail are adapting to new trends, leading to insights on what the market might look like by the end of the year.
According to the Calgary Real Estate Board (CREB), Calgary's housing market is set to maintain its upward momentum through 2025, with sales projected to exceed long-term trends by 20%. Factors such as population growth and easing lending rates are expected to inflate demand, though the influx of new housing stock will create balance and moderate price growth. CREB's Chief Economist, Ann-Marie Lurie, emphasized the importance of monitoring significant economic risks, including potential tariffs, as we move through the year.
“While the market is expected to be more balanced than in recent years, significant economic risks—such as potential tariffs—could impact activity,” noted Lurie. With approximately 26,000 homes predicted to sell this year, the detached market is forecasted to see 12,600 units sold. The condo sector may experience difficulties, with rental vacancies and new completions pushing demand down and leading to projected declines of 3.5% in sales and 1.8% in prices.
A major trend highlighted for 2025 involves Calgary's remarkable construction activity, where over 22,500 new homes, primarily apartments, are expected to hit the market by year-end. This surge is anticipated to alleviate pressure on both sale prices and rents. Further, CREB projects citywide price growth will decelerate to 3%, down from 7% gains noted the previous year. Variations are projected, with lower-priced homes likely to see significant increases due to sustained demand and limited supply.
Shifts within the economy also promise to affect housing demand. Alberta's economy is forecasted to lead Canada’s growth, bolstered by investments in sectors such as alternative energy and artificial intelligence. Although migration is predicted to slow compared to prior peaks, the population will continue to expand at rates above provincial averages, supporting housing demand. Possible economic risks, including changing federal energy policies, could stifle progress, whereas reduced tariffs could push migration and housing activity beyond initial expectations.
Meanwhile, the grocery retail sector prepares for disruptive transformations. United Natural Foods Inc. (UNFI) recently wrapped up its Spring and Summer Selling Show, highlighting significant growth trends expected to take shape over the coming years. The event attracted 4,300 attendees, connecting retailers and suppliers across natural, organic, and fresh grocery product lines.
Among the report's findings, retail media is set to surge over 24% annually from 2024 to 2028, and private label brands are likely to see approximately 40% growth over the next six years. Fresh produce is now outpacing other grocery sectors. UNFI's Chief Commercial Officer, Louis Martin, stressed the importance of crafting personalized shopping experiences to capitalize on unexplored opportunities within the digital space. “While many retailers are engaging their shoppers digitally, there are still untapped opportunities to create a more comprehensive and customized digital experience,” Martin stated.
Supporting the changing grocery environment, Michael Funk, UNFI co-founder, shared insights on the industry's evolution, underscoring the necessity for innovation: “We need to constantly reset and adapt to best meet the needs of our customers.”
The insurance sector is also poised for significant alterations due to geopolitical risks and domestic fluctuations shaping the global economic environment. Insights from Peak Re suggest variables such as the potential for a second Trump presidency, conflicts abroad, and altered trade relations will converge to shape economic trends significantly.
Projected growth rates indicate overall economic performance up to 2026, with economies across Asia outpacing stagnation seen within the Eurozone. The International Monetary Fund affirmed global GDP growth will remain stable at about 3.2%, with US growth anticipated to decelerate following prior interest rate hikes, potentially slipping from 2.8% growth recorded in 2024 to around 2%.
The projected US economic policies could expand volatility, particularly with tariffs impacting trade and confidence levels among consumers and investors. Peak Re's analysis emphasizes how insurance demand correlates closely to GDP growth, with past trends demonstrating non-life insurance premiums rising by approximately 0.62% for every 1% increase in GDP. Yet, the impending risks from geopolitical tensions and structural inflation suggest varying impacts on claims inflation across different lines of coverage.
With rapid shifts in retail loyalty programs, expectations will rise from consumers seeking more personalized rewards based on shopping behavior. According to Len Covello, CTO of Engage People Inc., loyalty points no longer represent just aspirational rewards but have transformed significantly to accommodate everyday spending.
“2025 will be the year of loyalty point ubiquity. The demand for using points as currency will grow stronger,” Covello explained. The growth of digital wallets merging loyalty programs will likely evolve alongside real-time payments, catering to consumer preferences for flexibility and immediate gratification.
By adapting to these trends, industries will need to remain vigilant, carving out strategies structured around sustainable growth and responsive adaptability.