Guelph Real Estate Investing Success in 2023
If you are looking for to invest in a market known for steady growth, affordable prices and a thriving local economy, the Guelph real estate market may just be the place for you.
Guelph Ontario, fondly known as the Royal City, is a city located just outside of Kitchener and Downtown Toronto. Despite being located in the Golden Horseshoe, Guelph real estate is a relatively affordable market compared to its larger neighbours.
However, how does the city’s unique environment contribute to successful investments? Well, before we can fully understand the benefits of Guelph real estate, we need to know how to finance it. So, click the link below to book a free strategy call with our team at LendCity to find out more.
An Affordable Time to Buy
One of the main reasons why Guelph real estate is an excellent market to look into right now is because prices are actually down compared to their normal averages.
While Guelph was home to the same type of rapid growth and appreciation that impacted the entire Ontario market in 2020 – resulting in an average home price of over $1 million at its peak – the market has cooled significantly for the time being, bringing prices down to approximately $842,000 at the time of writing this article.
This is largely fueled by the rise in interest rates and cooling market being used to combat record-high inflation. However, historically real estate values always trend upwards meaning that these reduced prices are likely an opportunity to get a bargain on a rental property instead of a sign of market chaos lying ahead.
Rents Are Up in the Guelph Real Estate Market
Despite the market value of properties in Guelph being on the decline, the truth is that the average rent price has stayed the same or risen in the meantime.
Currently, the average vacancy rate in Guelph is under 2 per cent – nearly half of the provincial and national averages. The low vacancy rate is due to Guelph growing faster than the average city in Ontario in terms of population. This results in a very competitive rental market where many tenants are willing to pay above asking if it means they can get their first choice in terms of housing. This means that typically you will be able to expect a strong and reliable cash flow from your properties.
Current estimates in the city at the time of writing this indicate rentals going for nearly $1900 for a one-bedroom rental, $2200 for two bedrooms and $2500 for three-bedroom apartment.
Connectivity and Transportation
Guelph is an incredibly well-connected city with a strong focus on local and intercity transportation.
Firstly, the city is on the route for multiple major highways such as Highway 401 to Toronto and London, Highway 7 to Kitchener and Acton, and Highway 6 to Hamilton and Owen Sound. This means that both investors and tenants alike who need to travel between these key markets will have direct access for quick and easy transportation.
The city is also home to a healthy municipal transit system with over 70 busses covering 28 routes. The service accommodates over 20,000 residents per day. As well, the city of Guelph is looking to invest $177 million into buying new electric busses and a new bus storage facility to increase the efficiency and reduce the environmental impact of the system. For intercity transport, Guelph is also home to GO Transit busses that make their trips from Guelph Central Station and the University of Guelph.
Manufacturing and Industrial Success
Beyond the tech industry and the Innovation Corridor, Guelph has also been supported by its manufacturing and industrial job markets in both the early days of the city’s industrial development and the modern day.
The city of Guelph is home to some of Canada’s most successful manufacturing companies such as Linamar – a company responsible for the manufacturing of major components used in the automotive industry, the medical technology field and more. In Guelph, the company operates over 22 manufacturing companies across a variety of facilities.
In 2016, the labour force in Guelph comprised nearly 76,000 individuals with approximately 55 per cent of those people working full-time year-round jobs. Out of that population, over 8200 people were working in the manufacturing and utilities industries – that made those industries one of the top five job providers for the city. Since then, Guelph has only grown with even more people moving into the city and joining the workforce.
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A Strong Student Population
The Guelph real estate market is great for student rentals with an absolutely massive student population at the University of Guelph of over 30,000 students. Meanwhile, only 13 per cent of those students live on campus. Meaning that 87 per cent of the student population – or over 26,000 students need some other form of housing such as student rental properties.
This combined with the growing population of the city and the increased acclaim of the University of Guelph across Ontario in recent year, means that the student population of Guelph is expected to continue to grow each year.
A Healthy Local Economy
The Royal City is home to a strong local economy with plenty of jobs spanning the manufacturing, education, and tech sectors of the market.
The manufacturing sector is the leading force in the city’s economy, with companies such as Linamar operating 22 manufacturing plants based out of the city.
Guelph historically has also been one of the best cities in terms of employment rates. In fact, in 2019 the city had the lowest unemployment rate in the entire country. This means that you can remain confident that your tenants are unlikely to lose their jobs and their income and if there is an interruption, they will have a high chance of finding new work to regain their income.
In terms of income, Guelph residents boast a higher average income compared to other cities with an average household income of $100,175 before taxes. This translates to strong affordability for residents in the city to support the higher average rent prices in the city.
Tourism in Guelph Real Estate
The local tourism industry in Guelph is strong and thriving largely due to three main factors – local historic sites, arts and culture festivals, and local sports.
Not only is the city lined with restored Victorian era buildings, but it is home to places such as the Guelph Civic Museum and the McCrae House.
In regard to arts and culture, the city is home to a multitude of successful festivals that draw crows in year-over-year. This includes the Two Rivers Festival, the Guelph Film Festival, the Hillside Festival, Guelph Pride, and the Guelph Festival of Moving Media. Each of these attract people from out of town into the city and encourage everyone to engage with the city’s economy and businesses on a regular basis.
The city is also home to a variety of local sports teams that help draw people into the city including the Guelph Storm OHL team, and the Guelph Royals baseball team.
Guelph Real Estate – A City In-Demand
Guelph is one of the fastest growing cities in Ontario and it has not shown any signs of stopping in recent years. As a result, the Guelph real estate market has been on a steady rise that is likely to resume after the market rebounds from the current economic slowdown.
So, if you are looking to invest in a city built for growth and expansion with a strong demand for housing and rentals, Guelph may be the place to start browsing.
Of course, if you are going to enter a competitive market, you need a competitive mortgage. That is why at LendCity we pride ourselves on helping you find the best available mortgage product with the best rate and the fewest restrictions so that you are ready to go out there and achieve your goals.
To get started today, visit us at LendCity.ca or give us a call at 519-960-0370
Guelph Real Estate Professionals
Here is a list of trusted professionals that service the Guelph real estate market.
Mortgage Brokers
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If you would like to learn more about how to finance Guelph real estate investments, click the link below to book a free strategy call with our team at LendCity.