As wildfires continue to make headlines across Canada in 2025, their influence is being felt beyond the forests and evacuation zones. Increasingly, the housing market is responding to these environmental challenges. From shifting buyer preferences to changing insurance premiums, wildfires are quietly reshaping the way Canadians buy, sell, and insure their homes. Here’s what homeowners and prospective buyers need to know.
The Ongoing Wildfire Season in Canada
In the first half of 2025, Canada has experienced over 1,300 wildfires, with more than 1.5 million hectares burned. Manitoba, Saskatchewan, and parts of Northern Ontario have been among the most affected regions, with several communities placed under evacuation alerts.
While these numbers may seem alarming, experts say it’s part of a broader trend tied to warmer, drier conditions. As a result, wildfires are becoming a more routine part of seasonal risk assessments in the real estate world.
How Property Values Are Affected
Properties located in or near high-risk fire zones are seeing more variability in their market value. Although some areas are bouncing back quickly after fires, others are facing decreased demand, especially among out-of-province buyers or investors.
According to a recent academic study, long-term exposure to wildfire risk can lead to a measurable dip in local property values, depending on the severity and recurrence of the fires.
Source: ScienceDirect – Impact of Wildfires on Property Values
However, it’s worth noting that many communities continue to thrive despite these challenges, particularly those investing in mitigation infrastructure and fire-smart development.
Rising Insurance Rates in Fire-Prone Regions
One of the more immediate impacts of wildfire activity has been the increase in home insurance premiums. In 2024, Alberta alone reported over $880 million in wildfire-related insurance claims. This trend has continued into 2025, with many homeowners across the country seeing rate increases, particularly in higher-risk zones.
Source: Reuters – Insurance Sector Faces Climate Claims
Some insurers are also reassessing eligibility for coverage or requiring updated fire safety inspections before renewing policies.
How Buyer Preferences Are Shifting
Today’s buyers are thinking differently about location and resilience. Homes constructed with fire-resistant materials, properties with defensible landscaping, and areas with access to fire services are becoming more desirable.
There’s also been a noticeable uptick in interest in regions that are perceived as lower-risk for natural disasters. For many, long-term peace of mind is now a more significant factor in homebuying decisions.
Government Action and Local Planning
To address the growing risks, Canadian municipalities and provinces are investing in both short- and long-term wildfire mitigation strategies. This includes funding for equipment, firebreak infrastructure, and updated building code requirements that encourage fire-resistant construction in new developments.
Source: Policy Options – Insurance and Real Estate
These efforts aim to support homeowners while encouraging responsible development practices in affected regions.
Conclusion
Wildfires are becoming a more consistent part of Canada’s seasonal landscape, and the real estate industry is adapting in response. While the risks are real, so are the solutions. With smarter planning, updated construction practices, and informed buying decisions, Canadians can continue to find homes that are both beautiful and resilient.
References
- Mueller, J.M., & Loomis, J.B. (2008). Spatial dependence in hedonic property models: Do different corrections for spatial dependence result in economically significant differences in estimated implicit prices? Forest Policy and Economics, 10(5), 497–505. https://doi.org/10.1016/j.forpol.2007.10.005
- Reuters. (2024, May 27). Canada’s insurance sector faces climate claims as wildfires, floods rise. https://www.reuters.com/business/environment/canadas-insurance-sector-struggles-climate-change-fueled-disasters-2024-05-27/
- Policy Options. (2024, March). Canada’s insurance system isn’t ready for climate change. https://policyoptions.irpp.org/magazines/march-2024/canadas-insurance-system-isnt-ready-for-climate-change/
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