Niagara Region has always held a soft spot in the hearts of everyone who visits but when they were hit by the devastating recession of 2008, the Niagara Region’s economy was hit harder than the rest of the province. Their unemployment rate doubled and the blow seeped into every area of the community. However, with a lot of hard work and careful financial planning, the region has recovered its losses and wisely invested back into the backbone of the community, their entrepreneurs and small business owners.
Fast forwards to a decade later and the region has recovered marvelously. The unemployment rate has dropped by half and the area is on track to becoming a leader in Ontario’s housing market in both affordability and demand. Niagara Region’s Real Estate Market has become a hot spot in southern Ontario as nearly 80 percent of housing in Ontario is well over the aggregated price of Niagara’s housing market. It comes as no surprise that Niagara has attracted investors looking towards the future.
The first three months of 2018 remained strong for the Niagara Real Estate Market as housing prices continued to rise, while in the Greater Toronto Area (GTA) the market has cooled.
The Royal Lepage reported seeing a growth of 23.5 percent during the last three months of 2017, the second highest in the country. Houses are currently valued at an average at $324,000, about a third of the average price of a similar home found in Markham or Oakville.
Here’s what will be the biggest influencers on the Niagara real estate market growth in the next few years
Despite the lack of growth in the GTA’s 2018 real estate market, housing prices are still the highest throughout the province. Less and less people are able to afford the sky high prices and thanks to the newly implemented stress test, a regulation put forward by the federal government, the number of qualified buyers for the area has dropped further. Due to these factors many within the GTA are opting for longer commutes and are looking to the Niagara Real Estate Market to fulfil their housing needs. Current residents of the GTA who are able to sell their properties in the city are now able to take advantage of the much more affordable prices in Niagara’s Real Estate Market. In many cases, buyers are able to pay off their new home in a single move and bypass the mortgage brokers altogether.
The Supply For Housing Cannot Fit The Demand
With the influx of Torontonians and younger families looking to the Niagara Region as an area of refuge from the sky high real estate market, the Niagara Real Estate Market will continue to see a rise in their own prices as it struggles to meet the demand. Current Niagara residents may choose to take advantage of a profitable market by selling properties closer to the downtown core of Niagara to Torontonians so they can purchase larger and more rural properties they had set their eyes on.
This will have little impact on the Niagara Region’s overall affordability in comparison to the rest of Ontario and Niagara investors will have an opportunity to enter themselves into the real estate race. The lack of housing within the region will be an opportunity for investors who are looking to develop.
Niagara’s Economic Growth
The secret to Niagara’s ever strengthening community comes from the regions pride in their small business owners. As a result, the request and approval of building permits for development in the area has well surpassed the $100 million mark. More than $19 million in building permits have been approved for industrial projects, $67.4 million for commercial projects, and $50 million in the institutional and government category are all scheduled to begin in 2018. These changes will supply current and future residents with higher paying employment options, fill some of the housing demand, and strengthen the overall well being of the community. There are plenty of opportunities available for future investors in the Niagara area and the area is going to see many big changes in the years to come as the area continues to grow and thrive.
Residents who can no longer afford the hefty price tags within the GTA will continue to flock to the Golden Horseshoe and opt to rely on commuter services such as the proposed Niagara and St. Catherine’s GO stations. Housing supply will continue to be a challenge for both new and current homebuyers as the demand grows, but intelligent investors are continuing to rise to the challenge.
Niagara Falls may be the site for tourists, photographers, and nature loving enthusiasts to explore, but for first time home buyers, investors, and developers, it is a call for something much more. There are many opportunities awaiting in Niagara’s Real Estate Market and intelligent investors are going to enjoy the prosperity of their investments in the years to come.