As 2025 draws to a close, Baguio City finds itself at a critical crossroads, grappling with intensifying pressures of urban decay while attempting to pursue ambitious sustainability frameworks.

The year has been defined by a stark contrast between the city’s international image as a “Creative City” and the gritty reality experienced by its residents. While local governance has focused on long-term blueprints such as the 2026 Resiliency Vision and the 2043 Livable City goal, the immediate lived experience has been marked by overstressed infrastructure and systemic neglect.

The most visible struggle remains the city’s breached carrying capacity. Urban planners and local advocates have long warned that Baguio’s essential resources, including land for settlement, water supply, and road density, reached unsustainable thresholds years ago, with some reports tracing the problem as far back as 1985. In 2025, this reality manifested most clearly in a worsening housing crisis. On October 6, 2025, officials cited a backlog of approximately 16,000 housing units. Limited land availability has pushed real estate prices in the central business district to astronomical levels, prompting a public consultation on December 3, 2025, on the creation of a landbanking authority to acquire properties in neighboring Benguet towns to absorb population overflow.

Environmental and utility concerns also reached a boiling point. Despite its moniker as the “City of Pines,” Baguio’s forest cover has fallen below the 30 percent minimum standard, an issue raised during the presentation of the 2025–2028 Environmental Action Plan in early November. The decline has contributed to worsening water shortages and an emerging urban heat island effect. Power outages spiked throughout the year, often linked not to seasonal typhoons but to aging infrastructure. Waste management remained a major financial burden; as of June 3, 2025, the city finalized new contracts to haul garbage to a landfill in Porac, Pampanga, while continuing to use facilities in Tarlac. These hauling costs are projected to exceed P200 million by the end of December.

Health concerns likewise shifted in 2025, with lifestyle-related illnesses taking center stage. By December 23, official data showed cardiovascular diseases, particularly hypertension, had become the leading cause of death in the city, with 828 fatalities recorded in nearly 12 months. Health officials attributed the trend to a high-stress urban environment and changing dietary habits.

The year also saw rising social and political tensions. Baguio’s “Creative City” title came under criticism from local artists who argued that the designation benefits tourism more than the local creative economy.

This disconnect extended to the labor sector, where tensions peaked on December 27, 2025, with the arrest of a prominent union organizer who is also a local artist. Advocacy groups have described the charges as fabricated.

Meanwhile, the plight of Baguio’s urban poor remained a flashpoint, particularly during the September 21, 2025 anti-corruption rallies, which underscored persistent gaps in inclusive governance.

As the city looks toward 2026, the central question remains whether Baguio can move beyond “green” rhetoric and long-term visions to confront the realities of overdevelopment, inequality, and strain on resources that continue to threaten its sustainability.