If you’ve lived in Ottawa over the last few years, you may have noticed how much the city has been growing in almost every aspect. In fact, in 2019, the city hit a huge milestone by officially hitting a population of 1 million people! If you’re not from Ottawa, you might still think it’s been the same as always – but we’re going to let you in on a secret – Ottawa is booming with no signs of slowing down.
Ottawa’s steady growth has attracted many real estate investors recently, and many others are taking notice. The real estate market in the city has seen substantial growth, steadily exceeding the national average for growth. We’re going to show you exactly why you should consider real estate in Ottawa as your next investment property.
Here are just a few of the reasons Canada’s capital proves to be a worth-while real estate investment for anyone looking to purchase a property here.
As a major capital city, Ottawa has been able to maintain a level of affordability that is significantly better than many other major cities such as Toronto and Vancouver. Not only is the cost of housing better in Ottawa, but the cost of gas, food, goods and services, and life in general tends to be lower in the National Capital Region.
As you can imagine, the cost of living in Ottawa compared to other urban centers is a huge draw for new families, especially millennial – the most recent generation to navigate an increasingly unaffordable world. This is particularly noticeable in family-oriented areas, such as Stittsville, Kanata, Barrhaven or Orleans.
Currently the national average for a home in Canada is $525,125*. Ottawa’s average price of a home sits at $437,700* – a full 16.6% lower than the national average. This difference is particularly noticeable compared to markets like Toronto, where the average price for a home is $766,300* – almost 43% higher than Ottawa. (CREA national price map*)
2) Quality of Life
Ottawa has always been known to have an amazing quality of life for a number of reasons. Wages, economy, infrastructure, health care, school systems, employment, crime rate, and affordability are all considerations for quality of life. Ottawa is a city that regularly ranks high for quality of life across the board. Just this year, Ottawa ranked 3rd overall on MacLean’s list of best communities to live in.
This ranking is no coincidence – Ottawa boasts the best of these categories and it is a big part of the reason people chose to migrate to the city. With amenities such as the University of Ottawa Heart Institute, CHEO, Ottawa’s tech sector, world class universities and colleges, lush surroundings, and recreation are just a few reasons Ottawa consistently ranks so high.
3) Return on Investment
Last year alone, some properties in Ottawa saw a growth of 12% across the board, higher than the national average according to the Canadian Real Estate Association. Despite this steady growth, Ottawa is still considered an affordable place to buy a home compared to other major urban centers.
Real estate in Ottawa will almost guarantee you great return on investment based on the steady growth of the housing market in almost any region you consider an investment property. From condos, to single-family homes, to rural properties; they have all seen growth. That’s where a great realtor can help you navigate what kinds of properties you should consider for investment, and where.
Ottawa’s economy, much like it’s housing market, has enjoyed steady growth over the last couple of years. Ottawa’s tech sector boasts major companies like Ciena, Huawei, Microsoft, Nokia and more. Major online platforms like SurveyMonkey and Shopify, and Amazon are among some of the largest employers in the city. The Government of Canada also employs a large portion of the population in Ottawa, including the new DND (Department of national defence) headquarters in Ottawa’s West End which introduced ~8000 jobs to the region. It’s no surprise the population continues to grow.
With more economic growth comes more people, meaning more need for infrastructure and housing. This means that jobs in construction and trades are also seeing a huge spike in the city, bringing more employment opportunity to the region.
Canada’s national unemployment rate as of October 2019 was 5.6%*. Toronto, one of Canada’s largest cities, saw an unemployment rate of 5.7%*. Unsurprisingly, Ottawa enjoyed one of the nation’s lowest unemployment rates sitting at 4.2%* (% figures all as of October 2019 from Stats Canada*)
With such steadily growing economic prosperity, it’s no coincidence that these figures have a direct impact on the housing market, making it a sound investment option.
5) Competitive Rental Market
According to the City of Ottawa Rental Market Report; “The housing stock in Ottawa is divided between owners, who largely live in single detached homes covering most of the City’s area, and renters, who largely live in apartments located in concentrated areas accessible by transit. The rental market has grown in supply (number of rental units) by about 1% over the period from 2016 to2018, while over the same period, the population in rental accommodation has grown by 2.9%. Over that same period rents have risen sharply, by 7.8% for apartments and house rents by 11.3%”
So, what does this mean if you’re interested in purchasing an investment property in Ottawa? It means that you won’t have a hard time renting it to qualified tenants at a competitive rate. A good realtor can not only help you purchase a sound investment property, but also help you find qualified tenants who will bring in rental income as your investment grows in value.
6) Continuous Growth
If you’re not already convinced that the City of Ottawa is experiencing steady and continuous growth based on the facts presented here, then you might be interested in something else. Just a quick read through the City of Ottawa’s official growth projection report will demonstrate how much more this city is going to expand in the coming years, which will put real estate at a premium.
According to the report, a “potential shortfall of land for single and semi-detached dwellings is anticipated by 2036 when taking into account the projected housing demand of the 2036 population”. What does this mean? Well, substantial growth like this usually results in increased values among the real estate market.
What are you waiting for?
If you’re looking to jump on the real estate market in Ottawa, now is the time to do it – and we can help! In this ever-changing market, a great realtor is absolutely necessary to ensure that you’re getting the best out of your investment property, both before you buy, and when you choose to sell. So what are you waiting for? Give us a call at 613 592 0062 today to discuss what your next real estate investment will be.
Thinking of investing in the not-so-distant future? Get in touch to learn how we can make the process as easy and profitable as possible!