What Is the Price Forecast for London Property for the Next 5 Years?

If you're trying to get a sense of where London Ontario home prices are headed over the next five years, you’re not alone. Buyers, sellers, and investors all want clarity — especially after the rollercoaster years of 2020–2023 and the cooling period of 2024–2025.The good news? The next half-decade looks far more predictable — and far more balanced — than the years behind us.

1. What the Latest Data Says

According to the London & St. Thomas Association of REALTORS® (LSTAR), the average home price in late 2025 sits around $620K, down a few percentage points from 2024, but stabilizing month-to-month. What matters most is trend, and LSTAR notes a move toward a more balanced market with inventory returning to normal levels.

On the national stage, the Canadian Real Estate Association (CREA) forecasts a gradual price recovery starting in 2026, tied directly to interest-rate easing and improving affordability. CREA’s long-term models show Ontario regaining moderate year-over-year price growth — not a boom, but stable, sustainable appreciation.

2. The Key Drivers for the Next 5 Years

✔ Interest Rates Will Slowly Ease

Most major banks (RBC, TD, National Bank) expect gradual rate cuts beginning late 2025 and continuing through 2026–2027.More affordable borrowing = more buyers re-entering the market.

✔ Population Growth Supports Demand

London remains one of Ontario’s fastest-growing mid-sized cities thanks to:

• Western University & Fanshawe College

• Healthcare sector expansion

• Tech and manufacturing jobs

• Continued migration from the GTA

More people = sustained housing demand.

✔ New Construction Isn’t Keeping Pace

Even with active development in Hyde Park, Southwest London, and infill pockets across the city, OREA notes that housing supply will continue lagging behind population growth. This is a long-term pressure that typically pushes prices upward over time.

3. The 5-Year Forecast (2025–2030)

Based on current projections from CREA, OREA, and LSTAR trends:

2025:

• Prices stabilize after early-year softness

• Balanced-to-buyer-leaning market

• Average price roughly $600K–$630K

2026:

• Modest growth returns (1–3%)

• Rates begin easing

• More buyer activity

2027:

• Stronger confidence in the market

• 3–4% appreciation expected

• Inventory tightens

2028–2030:

• London continues long-term growth tied to population and demand

• CREA models expect steady 3–5% annual appreciation

• Renewed investor interest, especially in multi-unit properties

Bottom Line:No crash. No explosive boom.Just steady, predictable growth — which is exactly what a healthy real estate market should look like.

4. What This Means for Buyers, Sellers & Investors

For Buyers:

Buying in a stabilized market is a win — fewer bidding wars, better negotiation, and the ability to refinance later at lower rates.

For Sellers:

Pricing and presentation matter, but the long-term appreciation outlook is solid. Selling now or in the coming years both offer strong market conditions — just with different dynamics.

For Investors:

London remains one of Ontario’s most predictable rental markets. With rents rising steadily and long-term population growth locked in, multi-unit and single-family rentals both perform well.

Bottom Line

London’s 5-year forecast shows stability, moderate appreciation, and strong fundamentals. Whether you’re planning to buy, sell, or invest, you’re operating in one of Ontario’s most resilient and quietly powerful markets.

If you’d like a personalized look at how this forecast affects your buying or selling plans, I’d be happy to walk you through it.

Justin Skrypnyk

Real Estate Broker

519-639-5176

Sources:LSTAR Market Report (2025)CREA National Forecast (2025–2030)OREA Housing Market Outlook