Estimating Value Increase in Canadian Cities and their Real Estate Investment

Locals and foreign investors alike are interested in Canadian real estate, which is among the world’s most active and expensive. The Great White North is undoubtedly a country of immense opportunity, whether you’re seeking a place to call home or making a significant profit on a property. Cities of all sizes provide lucrative chances for real estate investment.

At $716,828, the average home price in Canada is currently rather variable, depending on where you look for your real estate investment. While Vancouver and Toronto are frequently mentioned in discussions for Canadian real estate investment, we have produced a list of a few underrated locations around the nation that may have even more to offer.

This blog will cover all you need to know before beginning your real estate investing career for beginners.

Location Average Cost in June 2021 Average Cost in June 2020 1 Year Growth %
Windsor, ON $543,983 $400,034 26.46%
Hamilton, ON $879,100 $682,800 22.33%
Montreal, QC $498,900 $391,600 21.51%
Kelowna, BC $915,000 $698,500 23.66%
Ottawa, ON $671,400 $525,000 21.81%
Calgary, AB $445,000 $397,200 10.74%
Kingston, ON $582,179 $457,393 21.43%
Nanaimo, BC $665,900 $513,200 22.93%
Halifax, NS $468,790 $366,668 21.78%
Moncton, NB $247,100 $180,721 26.73%

The Best Real Estate Investment Locations in Canada

Real Estate Investment locations in canada

Ready to purchase a home? Consider some of the undiscovered beauties outside of Toronto and Vancouver. The finest Canadian real estate investment locations are listed below.

  • Windsor, Ontario

On the Detroit River, right across from the US metropolis of Detroit, is Windsor. Many Americans and Canadians commute between two cities where they live and work. With a population of just under 250,000, Windsor is a medium-sized city, but it also has the third-fastest population growth in Canada.

What Makes It on the List

Windsor is not just one of Canada’s cheapest cities but also an excellent place for travellers or people who work abroad because it’s close to a significant US city – Detroit. Long known to have one of the best employment markets in the nation, Windsor is now attracting further employment with the work-from-home option, saving up on transport as well!

  • Hamilton, Ontario

Hamilton has typically been considered a remote suburb of Toronto, but it is now emerging as one of Ontario’s most popular neighborhoods. With a population of over 500,000, a healthy job market, and an active restaurant and retail landscape, more and more individuals are selecting Hamilton as a place to live and work. It is more than just a place to commute to Toronto. The city of Hamilton is also known as the waterfall capital of the world, and there are several hiking and biking paths available for locals to enjoy the great outdoors.

What Makes It on the List

Many people choose Hamilton to be close to major cities while living on a budget since housing costs are still more than one-third less than those in Toronto. The city’s continued growth makes it an excellent spot to establish roots and launch a family or a business. If you do start to miss the Toronto skyline, it is only a little more than an hour’s drive away.

  • Montreal, QC

Many people choose Hamilton to be close to a major city while living on a budget since housing costs there are still more than one-third less than those in Toronto. The city’s continued growth makes it an excellent spot to establish roots and launch a family or a business. If you start to miss the Toronto skyline, it is only a little more than an hour’s drive away.

What Makes It on the List

The most budget-friendly glitzy city in Canada is, without a doubt, Montreal. The best of French cuisine and culture is here. Particularly if you want a European flavour to your everyday life. Quebec has housing costs that are significantly lower than the national average, in addition to other money-saving benefits like universal childcare that is reasonably priced. Families in Montreal keep housing and childcare costs down, freeing more cash for recreation and travel.

  • Kelowna, British Columbia

One of Canada’s most picturesque cities, Kelowna is a favourite travel destination. On the eastern side of Okanagan Lake, Kelowna is tucked away in the interior of British Columbia. It feels like a tiny piece of California in the Great White North because of the mild climate and palm trees. Although the city only has a little over 100,000 residents, it receives close to 2 million visitors annually.

What Makes It on the List

Kelowna is the ideal area to spend a vacation, retire, or start a family. This may be your greatest option in all of Canada if you’re looking for a home for yourself or an investment property to put on Airbnb.

  • Vancouver, British Columbia

The capital of the country, Ottawa, is populated by almost a million people. The city is lovely and has a fascinating past, but it is also accessible by foot, reasonably priced, and great for families. Ottawa is a city with a robust economy, high wages, outdoor markets, museums, and lots of parks. Ottawa is unrivalled if you love history or want a beautiful setting to raise a family.

What Makes It on the List

Despite its size, location, and significance, Ottawa remains one of Canada’s most affordable cities. You can live in Ontario without paying the high cost of living in Toronto as long as housing costs are still below average in Canada.

  • Calgary, Alberta

The fourth-largest city in Canada, Calgary, provides all the benefits of metropolitan living for a fraction of the price of major cities like Toronto and Vancouver. In the centre of the prairies, Calgary offers all the conveniences a city with the Rocky Mountains in its backyard should have. It takes less than 90 minutes to reach Banff for a ski trip or gorgeous trek.

What Makes It on the List

One of the few large cities in Canada where a dollar still buys a lot of square footage is Calgary. Calgary is one of the least expensive urban areas in the nation, with a population of over 1 million and an average property price of around $500,000. Additionally, Alberta has some of the lowest income taxes and highest average wages in Canada, making it a wonderful place to establish financial security.

  • Toronto, Ontario

With a population of 136,000, Kingston is a tiny city in Eastern Ontario, about two hours from the closest US border. It has a strong college-town feel because Queen’s University and a few other post-secondary institutions call it home. Students and faculty might make up close to half of the city’s population during the academic year.

What Makes It on the List

Although Kingston is one of Ontario’s most affordable cities, its location is what sets it apart. It is conveniently located 2 hours from Toronto and the same distance from the US border. If you don’t want to make the city your permanent residence, one or more rental homes is an excellent investment for college students.

  • Nanaimo, British Columbia

A little city called Nanaimo may be found on the eastern side of Vancouver Island. Although it only has a little more than 100,000 residents, it is a well-liked tourist attraction because it is a major ferry port. Nanaimo is the best option if you want to live on an inexpensive, tranquil island while still having the freedom to spontaneously travel to one of Canada’s biggest cities, Vancouver.

What Makes It on the List

One of Canada’s most picturesque regions is Vancouver Island, and Nanaimo is one of the Pacific Coast cities with the lowest cost of living. Nanaimo offers all the benefits of living in British Columbia at a fraction of the expense, thanks to much lower average home prices than elsewhere in the province.

  • Halifax, Nova Scotia

A mid-sized Canadian city, Halifax has around 500,000 residents. As the provincial capital and a port on the Atlantic Ocean, it serves as a significant fishing and transportation hub. One of Canada’s most picturesque regions, Nova Scotia is the perfect destination for sailing, windsurfing, paddleboarding, or fishing.

What Makes It on the List

Halifax combines the conveniences of a big Canadian city with the small-town charm of a seaside community. It’s one of the least expensive places in the nation to buy a house, but it still has a lot of room for price rises.

  • Moncton, New Brunswick

The little city of Moncton, which has fewer than 100,000 residents, is situated in southeast New Brunswick. What it lacks in size, it makes up for in personality and culture, with a thriving food scene, a wide variety of events, and a reputation as one of Canada’s greatest business cities.

What Makes It on the List

If you’re seeking the simplicity of small-town life by the seaside but find the Pacific Coast too expensive, Moncton could be the ideal place for you. You may buy the house of your dreams and still have money left over to enjoy everything else because the average price of a home is still much below $300,000.

How We Decided on Which Cities to Include

We focused on affordability, value, and growth while selecting the best Canadian locations for real estate investment. Although there are still plenty of chances in small and mid-sized towns to break into the real estate market, many Canadians feel priced out of the country’s hot real estate markets. All of the cities on our list have an average housing price that is less than the national average; generally quite a bit less, with the exception of just two, Hamilton and Kelowna!

Real estate investing in Canada is about more than just entering the market; it’s about what you get when you make a purchase. We took into account the sort of home and lifestyle you may have by investing in real estate in various Canadian locations because you want to get the most for your money. Make sure you’re purchasing what you want, whether you want to be steeped in culture and nightlife in a metropolis like Montreal or live slowly and leisurely on an island in a tiny town like Nanaimo.

We then took growth into account. Except for one (Calgary), all of the cities on the list have had more than 20% average price increases over the past year. You can enjoy a long-term financial return on your investment property because the markets mentioned are both reachable and thriving. We then took growth into account. Except for one (Calgary), all of the cities on the list have had more than 20% average price increases over the past year. You can enjoy a long-term financial return on your investment property because the markets mentioned are both reachable and thriving.

What to Think About When Buying Real Estate in Canada

Buying Real Estate in Canada

There are a few key factors to consider while you invest in your real estate investment in Canada. Buying a house to live in versus buying a rental property is very different. Similar to how buying a home in a tiny Albertan hamlet differs from purchasing a condo in a major city like Toronto. Here are a few things to consider before making a Canadian real estate investment:

  • Home or Investment Property

If you’re buying a home to live in, the price will probably be higher than if you were buying a rental home. In the same way, you’ll pick a city and a neighbourhood based on your tastes rather than the one with the lowest vacancy rate.

  • Affordability

You want to get the most for your money because your budget is probably the main factor in what you buy. Lower towns have a lot to offer those with smaller budgets, although Toronto and Vancouver seem to dominate the conversation about real estate in Canada. Why not think about moving to a less expensive city instead of trying to get the cheapest home in the most expensive city?

  • Growth

Growth is vital, whether you’re buying a home for yourself or investing in real estate. Put your money where it will provide the most return. You should pick real estate because house prices have increased nationwide at an unprecedented rate over the past year.

  • Lifestyle

Finally, the property you select must fit your way of life. The location and space itself must serve the objective, whether it’s a detached home to expand your family, an urban condo to Airbnb or a vacation home you can escape to sometimes. Canada is a vast and diverse country, and every city, whether a bustling urban paradise or a little village in the great outdoors, offers something distinct.

What to Look for in Real Estate Investment?

Look for in Real Estate Investment

You can have a personal preference for the location of the house you want to buy. If you’re looking for an investment property, you could, for instance, choose something close to your primary abode. However, that shouldn’t be the decisive aspect of real estate investment. You should also look at other factors that could impact a property’s value and future growth, such as:

Is a university nearby?
Students will need lodging, so purchasing a house close to a university is a wise investment.

Is public transportation nearby?
Being near the train or bus lines is a major selling point, whether you live there or rent it out.

How does the regional economy fare?
Is it a sleepy village with just one restaurant, or is it a burgeoning community with plenty of employment opportunities?

How much do the property taxes cost?
You must factor in this expense because areas like urban centers, where there is greater demand, probably also have higher property taxes.

To Sum it Up

The Canadian real estate industry is still expanding at a fast pace and currently does not appear to be slowing down. Consider some of the lesser-known hidden gems shared here, whether you’re interested in purchasing a home for yourself or as an investment property. They have so much to offer. For more choices on locations, you should think about buying a home. You can also check out our ranking of Canada’s greatest places to live.

You May Also Read

Financial Investment in Canada Benefits of Investing in Real Estate
Real Estate Investment in Canada Investing in Rental Properties in Canada
Buying an Investment Property in Canada Guide to Invest in Canadian Real Estate

Frequently Asked Questions (FAQs)

Which investment is best in real estate?

Investing in residential property is the best investment in real estate.

What are the 3 types of real estate?

The main three real estate types are: Residential, Commercial, and Industrial.

Can real estate make you a billionaire?

By developing the necessary abilities and knowing how to create a winning investment strategy, an average real estate investor can also rise to the status of a mogul.

How will real estate make money in 2022?

The most common method is to purchase one investment property and gradually expand your portfolio.

Meghna Chakraborty Definitely, on the spectrum of being socially awkward, Meghna prefers to write over, clumsily explain what she wants to say! No matter how much she says she likes you, if you have a dog, she'll probably like your dog better.... A couch potato, she chills harder than you party! She's also a very proud Hufflepuff!
Meghna Chakraborty Definitely, on the spectrum of being socially awkward, Meghna prefers to write over, clumsily explain what she wants to say! No matter how much she says she likes you, if you have a dog, she'll probably like your dog better.... A couch potato, she chills harder than you party! She's also a very proud Hufflepuff!