Top 10 places to invest in Canada
November 08, 2016
Now that Donald Trump is President Elect, some Americans are thinking of #MovingToCanada before he takes up residence in the White House.
With search terms such as “How to move to Canada” and “How to become a Canadian citizen” skyrocketing on Google during and after the election, Canada is on Americans' radar now more than ever. Now might be a good time to buy investment real estate.
To help guide your investment process, Canadian Property Investor has revealed the 50 Places to Invest in Canada. We poured over mountains of data, and augmented all of it with insight from experts and the experiences of real life investors.
We examined vacancy and rental rates (two-bedroom) from Canada Mortgage and Housing Corp., and validated these findings with data on population, employment and wage growth, as well as average home prices, from multiple sources.
Here, we summarize the Top 10 – the best of the best – from our list.
1. Brampton
Brampton as number one in the top places to invest in real estate may come as a surprise, but not if you’ve been paying attention to this market in the last few years.
Its ranking in the top 10 in vacancy rates – falling to a miniscule 0.9 per cent in 2015 – is the product of strong population and employment growth. This comes from the jobs afforded by corporate expansion; Coca-Cola, Barcardi Canada, Rogers Communications, Air Canada and Canon Canada are among the growing roster of blue chip employers which have relocated to or are expanding here.
There will also be improvements to transit infrastructure with the new 23-km Hurontario LRT line.
Key data:
- Vacancy rate:
2015: 0.9
2014: 1.9 - Average rent growth: 2.0% 2014-15
- Average home price growth: 7.0% 2014-15
- Population growth:20.8% 2006-11
- Employment growth:59.9% 2006-11
- Median income growth:8.1% 2006-11
2. Richmond Hill
Just one of several towns around Vancouver to benefit from people moving out of the downtown because of severe affordability issues. The Conference Board of Canada says the local economy – agriculture, transportation, manufacturing and retail – is one of the most diverse in the country. It is also one of the most productive, with real GDP forecast to grow 2.5 per cent this year and 2.8 per cent in 2017. Infrastructure improvements, such as the South Fraser Perimeter Highway, makes commuting easier.
Key data:
- Vacancy rate
2015: 0.9
2014: 3.0 - Average rent growth: 2.8% 2014-15
- Average home price growth: 21.2% 2014-15
- Population growth: 7% 2006-11
- Employment growth:53.4% 2006-11
- Median Income growth:14.5% 2006-11
9. Squamish
Squamish’s vacancy rate declined to zero in 2015, boasting the largest decrease in Canada. It also had the highest year-over-year rent increase. The city has become one of the go-to locations for buyers and renters who have been priced out of Vancouver. However, much like the rest of Vancouver, prices are on the rise, so investors might want to buy sooner than later.
Key data:
- Vacancy rate
2015: 0.0
2014: 4.5 - Average rent growth: 18.8% 2014-15
- Average home price growth: 14.0% 2014-15
- Population growth: 14.8% 2006-11
- Employment growth: 82.7% 2006-11
- Median Income growth: 8.1% 2006-11
10. Okotoks
One of the very few Canadian cities with a zero vacancy rate, Okotoks continues to draw residents. It's merely 15 minutes south of Calgary and boasts cutting-edge Green initiatives and transit improvements. Infrastructure is starting to keep up with the population, and the town stands to benefit from the On-It Calgary Regional Transit Pilot Project, which will serve Okotoks and connect residents to Calgary’s south LRT line.
Key data:
- Vacancy rate
2015: 0.0
2014: 1.4 - Average rent growth: 4.4% 2014-15
- Average home price growth: 7.2% 2014-15
- Population growth: 42.9% 2006-11
- Employment growth: 85.1% 2006-11
- Median Income growth: 29.8% 2006-11
Read Canadian Property Investor for the full data set and complete list of the Top 50 Places to Investment in Canada.
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