“Location, location, location!” is a popular mantra in real estate, and for good reason. While there is no shortage of great real estate across Canada, and especially within Ontario, certain cities like Toronto, Vaughan, Mississauga, Barrie, other parts of the GTA, and many other locations may be especially great investments for prospective home buyers.
There are many factors that influence the desirability of a property’s location. One factor is centrality. The more centralized a city or neighborhood is, the higher its property values tend to be. In expansive, sprawling cities, the outskirts of the developments may be unkempt or unsightly. The more compact and centralized a city’s layout, the more efficient and well-maintained it is likely to be.
Another key factor is the demographic breakdown of the neighborhood. Areas with higher average household incomes and education rates are likely to have greater long-term value from an investment perspective.
The final factor to consider is the closeness of your property to retail areas, public spaces, and other amenities. The more a city has to offer, the greater the value of their properties will be. A city that slowly dwindles in activity and never draws any tourists is more likely to be a stagnant or even in some cases a depreciating asset rather than an appreciating investment in a booming locale with consistent year over year growth.
Since the onset of the pandemic, the Canadian real estate market has seen a notable shift in consumer behaviours and trends. As work-from-home plans became increasingly prevalent, homeowners across Canada began looking to upsize their homes in order to accommodate the demands of remote working and living. We have also seen a mass migration of homebuyers from traditionally popular urban centers into smaller suburban towns, especially now that living near work is no longer a consideration for some.
Another interesting trend is the increase in value of suburban neighborhoods. As more and more Canadians turn to the suburbs for housing, this increase in demand has created competition in the market and raised property prices. We are now seeing properties an hour away from urban centers selling for the same rates as city homes would have sold for pre-pandemic, encouraged by open-market bidding wars. Even as interest rates increase this year, we can expect suburban housing markets to continue growing and expanding.
Although there is no shortage of great Canadian cities, here are a few of our top picks for the most profitable real estate investment opportunities.
If you are looking for a vibrant student town with a booming job market and a bustling downtown scene, look no further than London, Ontario. Home to the University of Western Ontario and Fanshawe College, London has seen continuous economic growth over the past decade. Prospective homebuyers love the town for its gorgeous neighborhoods, abundance of green space, and relatively low prices.
If you are looking for a vibrant city filled with culture, good food, and an exciting nightlife, Montreal may be the place for you. As the second-largest French-speaking city in the world, Montreal provides homebuyers with all the benefits of a big city without breaking the bank. In fact, Montreal is ranked amongst the most affordable metropolitan areas in Canada with home prices well below the National average.
The historic city of Woodstock has long been a popular tourist destination, drawing in visitors through its centuries-old architecture and picturesque nature trails. Located near highway 401, this small city has no shortage of great schools and activity centers in the area, making it a popular choice among homebuyers looking to start or expand their family. The culinary scene of Woodstock is also incredibly inviting, with delicious restaurants lining the cobblestone streets.
For home buyers interested in venturing East, Kelowna is not only another great city to invest in, but it is often considered to be one of the most beautiful cities in Canada. Characterized by its warm, temperate climate and its proximity to Okanagan Lake, Kelowna has a booming tourism economy and no shortage of things to do, both indoors and outdoors.
Ottawa is not only the heart of our nation’s capital, but a great city for any prospective homebuyer to consider investing in. Ottawa’s economy is very strong, with average household incomes surpassing the National average. Despite this, home prices in the city are very reasonable and affordable. Ottawa furthermore boasts a rich history as well as an abundance of museums, parks, and bustling squares.
Looking for the perfect city to buy a home? Clover Mortgage can help! Our professional team of brokers can help you find the best deals and rates in markets across Ontario including areas surrounding the Greater Toronto Area, the Ottawa Area, Peel Region, York Region, Durham Region, Niagara Region, Halton Region, London, Cambridge, Kitchener-Waterloo, Windsor, Southern Ontario, Northern Ontario, and more!
Contact Clover Mortgage today for a free consultation with one of our professional mortgage brokers!