Cities with Investment Prospects in Canada

 

Victoria, British Columbia

If you’re looking to invest in property in Western Canada, Victoria is the top choice. Great weather, great jobs and great schools make this city a popular place to buy and rent. According to MoneySense, hot neighbourhoods include Sooke, Rockheights and Gorge Vale. There’s a high demand to live in this popular area, and not enough housing to go around.

While the average home price in Victoria has risen rapidly over the past few years, the Canada Mortgage and Housing Corporation (CMHC) expects the market to cool over the next few years. Anticipated rises in the interest rate and the high cost of housing in B.C. are contributing to the changing conditions.

The average home price in Victoria is a steep $680,800, making it a tougher market to break into than other cities on the list until prices come down as predicted. For investors who can secure a property, they can expect a 7 percent return on investment over five years. Investors have also enjoyed a whopping 24.2 percent increase in rent for over five years.

Windsor, Ontario

Windsor’s trajectory over the past decade has been one of the worst to first. When the U.S. economy crashed in 2008, Windsor felt the sting. Located across the Detroit River from the U.S. auto capital, the city was hurt by the global credit problem. General Motors was forced to close their transmission plant in the city, halting a major source of jobs. At one point, Windsor’s vacancy rate was 15 percent, the highest in the nation.

Today, Windsor is growing again after the economic downturn. Savvy investors bought when the market was low. The vacancy rate has declined to 3 percent. Windsor is well suited to thrive: it is the westernmost point in the Quebec City-Windsor corridor, which includes three of Canada’s five largest metro areas and nearly half of Canada’s population.

The average home price in Windsor jumped 20 percent between 2018 and 2019, from $268,168 to $322,109. It is an excellent place to invest in property and earn passive income from a large number of people working in the region.

Guelph, Ontario

Guelph has consistently topped lists of the best cities for purchasing an investment property. Located in the Greater Golden Horseshoe, more people have been moving to Guelph than leaving in the past few years. Despite this influx of new residents, unemployment has remained stable and low.

Guelph was the top city for real estate investing according to MoneySense’s 2017 survey. Guelph is also one of the cities included in Ontario’s Places to Grow initiative, making it a key focus in the province for economic development and infrastructure investment. Guelph is also home to the University of Guelph, an important driver for the local economy – and a consistent source of renters.

The average home price in Guelph is $527,300. Rental prices in Guelph increased an average of 20 percent over five years. Investors saw an 8 percent annual return over five years.

List of other cities with top investment prospects:

• Gatineau, Q.C.
• Winnipeg, N.B.
• Saguenay, M.B.
• Charlottetown, P.E.
• Regina, S.K.
• Halifax, N.S.
• St. John’s, N.L.
• Edmonton, A.B.