Top 15 cities in Ontario to watch and buy in 2018-2019
Guelph has topped the list as the city with the most attractive real estate for buyers in Canada. Homes in Guelph go for about $441,000, which is more than four times the average household income. This certainly isn’t cheap, but in the shadow of Toronto, this is what passes as affordable.
Still, as important as affordability is, cheap house prices alone don’t make for a healthy housing market. A strong housing market should offer some income potential, sustained price growth, and a strong economy to support it. Guelph excels in each of these areas. These are the factors that drive the Where to Buy Now rankings.
Economically, Guelph is on a solid and stable footing with a minuscule unemployment rate. It’s home to advanced manufacturing companies, green tech firms, while also supporting several high paying government and education jobs.
Real estate investors looking in this market will appreciate how tight the rental market is in the city. Rents have risen 20% over the past five years while the city’s vacancy rate is below 1%, meaning investors should not have to work very hard to find a tenant.
| Rank | City | Average Home price (3 bedroom house) | Average income to home price | 5 year annual ROI | Average 5 year rent increase |
|---|---|---|---|---|---|
| 1 | Guelph Average rent to average home price ratio: 0.63 Home sales to new listings: 86.1 1-year price change: 16.7% 10-year annual ROI: 5.5% Discretionary income levels: $50,114 | $441,880 | 4.4 | 0.068 | 0.2 |
| 2 | Durham/Oshawa Average rent to average home price ratio: 0.54 Home sales to new listings: 81.6 1-year price change: 20.2% 10-year annual ROI: 7.4% Discretionary income levels: $52,653 | $528,475 | 4.9 | 0.109 | 0.215 |
| 3 | Brantford Average rent to average home price ratio: 0.73 Home sales to new listings: 86.2 1-year price change: 14.5% 10-year annual ROI: 5.3% Discretionary income levels: $44,648 | $335,584 | 4 | 0.07 | 0.185 |
| 4 | Kitchener Average rent to average home price ratio: 0.69 Home sales to new listings: 83.2 1-year price change: 11.2% 10-year annual ROI: 5.0% Discretionary income levels: $48,099 | $387,235 | 4 | 0.052 | 0.209 |
| 5 | Thunder Bay Average rent to average home price ratio: 1.06 Home sales to new listings: 68.3 1-year price change: 1.5% 10-year annual ROI: 6.0% Discretionary income levels: $47,446 | $219,249 | 2.6 | 0.059 | 0.249 |
| 6 | Hamilton Average rent to average home price ratio: 0.53 Home sales to new listings: 83.6 1-year price change: 10.8% 10-year annual ROI: 6.8% Discretionary income levels: $48,934 | $490,486 | 5.2 | 0.08 | 0.209 |
| 7 | Niagara Average rent to average home price ratio: 0.70 Home sales to new listings: 84.9 1-year price change: 16.4% 10-year annual ROI: 4.9% Discretionary income levels: $42,600 | $342,342 | 4.3 | 0.07 | 0.172 |
| 8 | Peterborough Average rent to average home price ratio: 0.76 Home sales to new listings: 77.5 1-year price change: 9.4% 10-year annual ROI: 4.3% Discretionary income levels: $42,117 | $325,795 | 3.9 | 0.051 | 0.108 |
| 9 | Windsor Average rent to average home price ratio: 0.91 Home sales to new listings: 73.7 1-year price change: 12.6% 10-year annual ROI: 3.0% Discretionary income levels: $42,442 | $221,432 | 2.8 | 0.059 | 0.127 |
| 10 | Toronto Average rent to average home price ratio: 0.43 Home sales to new listings: 72.6 1-year price change: 21.1% 10-year annual ROI: 7.5% Discretionary income levels: $52,653 | $753,528 | 7 | 0.093 | 0.183 |
| 11 | Barrie Average rent to average home price ratio: 0.68 Home sales to new listings: 74.1 1-year price change: 17.6% 10-year annual ROI: 6.0% Discretionary income levels: $48,506 | $438,828 | 4.5 | 0.088 | 0.202 |
| 12 | Kingston Average rent to average home price ratio: 0.93 Home sales to new listings: 48.3 1-year price change: 4.6% 10-year annual ROI: 3.8% Discretionary income levels: $48,139 | $306,849 | 3.3 | 0.032 | 0.222 |
| 13 | London Average rent to average home price ratio: 0.87 Home sales to new listings: 68.5 1-year price change: 5.4% 10-year annual ROI: 3.9% Discretionary income levels: $45,645 | $279,634 | 3.2 | 0.037 | 0.157 |
| 14 | Greater Sudbury Average rent to average home price ratio: 0.95 Home sales to new listings: 50.0 1-year price change: 4.2% 10-year annual ROI: 5.3% Discretionary income levels: $50,670 | $252,484 | 2.7 | 0.018 | 0.161 |
| 15 | Ottawa Average rent to average home price ratio: 0.78 Home sales to new listings: 52.9 1-year price change: 1.1% 10-year annual ROI: 3.8% Discretionary income levels: $53,837 | $373,719 | 3.5 | 0.17 | 0.13 |