2025 Year in Review - Economic Insights

St John’s economy has remained resilient in 2025 with some key economic indicators pointing to continued growth. Housing starts and residential sales have risen, even in the face of ongoing supply constraints.

Business and Development Activity

The value of building permits increased 8% in 2025 in the City of St. John’s, representing over $313.2 million in construction activity and 2,550 building permits issued. The value of commercial building permits increased 72% to over $204.8 million in 2025.

In 2025, the City of St. John’s approved 162 new businesses, 22% (or 36) of those were small home-based businesses. In 2024, there were 173 business approvals. Many of these businesses connected with the Business Information Centre, which consulted with over 400 entrepreneurs and business owners throughout the year providing information and data for business startup.    

St. John’s Real Estate

The overall office vacancy rate increased slightly in the fourth quarter 2025 to 20.8% compared to 20.4% in the fourth quarter 2024, according to Cushman & Wakefield Atlantic. The overall industrial vacancy rate in St. John’s metro decreased to 12.4% in the fourth quarter 2025 down from 15.4% in the fourth quarter 2024.



In the residential market, year-to-date housing starts in the St. John’s Census Metropolitan Area (CMA), increased by 19.6% (to 957 units). The sale of single detached homes in St. John’s posted a sizable gain of 21.1% from levels recorded in December 2024. The overall MLS® Home Price Index composite benchmark price for homes in St. John’s averaged $395,100 in December 2025, up by 9.6% compared to December 2024. According to the latest Canada Mortgage and Housing Corporation rental market report the apartment vacancy rate in the St. John’s CMA was 2.0%, on par with the 2.1% vacancy rate in 2024. The report shows the pace of rent growth increased compared to 2024 with average rent for a two-bedroom unit in the St. John’s CMA in 2025 at $1,361 a month, up 7.6% from 2024. 

Tourism Activity

The City of St. John’s celebrated a strong cruise season, marking another year of growth and economic benefit for the region. In 2025, St. John’s welcomed 38 cruise ships, bringing 27,829 passengers and 15,270 crew members to the capital city.

NLOWE - Origin to Opportunity Lab

Applications are now open for the Newfoundland and Labrador Organization of Women Entrepreneurs (NLOWE) new Origin to Opportunity (O2O) Lab. The O2O Lab is a cohort-based entrepreneurship program supporting women and gender-diverse newcomers throughout Newfoundland and Labrador as they turn ideas into action. For full program details visit nlowe.org. Deadline to apply is January 20, 2026.

Atlantic Canada Aquaculture Innovation Studio Project

Canada’s Ocean Supercluster (OSC), a national, industry-led innovation cluster focused on growing and transforming Canada’s ocean economy, recently announced a $1.7 million Atlantic Canada Aquaculture Innovation Studio Project. This new, collaborative OSC project will advance sustainable seafood production, scaleup companies, and position Atlantic Canada as a hub for aquaculture innovation. Oceans Advance in St. John’s is leading the project in partnership with Irish firm Hatch Blue.

Statistics Canada census jobs across Canada

2026 marks a census year in Canada, which means all Canadian households will be required to fill out the questionnaire that helps inform policy decisions across the country. Census workers play a vital role in helping to collect high-quality demographic, social and economic data to help provide an accurate statistical portrait of the country. For more information and to apply, visit the Census jobs webpage.