Hamilton Real Estate Investing Success in 2023 

Hamilton is a city known for it’s prime location and strong dedication to business. As one of the provinces primary growth centres in recent years, it is no surprise that the city has quickly become a hot spot for many real estate investors looking to build off of this city’s incredible success story. 

Hamilton was not always the shining jewel of business and opportunity that it has become today, in fact for years the Hamilton real estate market was incredibly under-valued. However, in the mid 2010s people began to see the hidden potential of the city and it has been on a consistent climb pretty much ever since and it does not show signs of stopping just yet, meaning there is still time to get on board. 

However, before we dive into the Hamilton real estate market, if you would like to learn more about how to invest and finance your Hamilton real estate investments, click the link below to book a free strategy call today.

Gain Toronto Access Without Paying Toronto Prices with Hamilton Real Estate

Many people who live in Hamilton find their way into the city because they required consistent access to Toronto for work, school or other personal reasons, but they did not want to pay the price of living in Toronto and instead decided to find more affordable housing nearby. 

Since Hamilton is only an hour away, it becomes a natural alternative for people to pursue. In fact, many people are more than willing to consistently make the commute to Toronto even if they can afford to pay the big city prices because the cost of gas is still less than the additional cost of living. 

Toronto is currently regarded as the most expensive city in Canada with the average home price sitting at approximately $1.1 million whereas in Hamilton is only approximately $720,000 for a 2-bedroom house. That is nearly $400,000 in savings at the cost of a one-hour commute.

Building Affordable Developments Just Outside of the GTA with Hamilton Real Estate

Naturally, due to its size and population, many investors want to build new developments in Toronto and the GTA (Greater Toronto Area). However, often the costs of securing land and completing projects in the city are quite steep and can feel inaccessible to new investors or developers operating with narrower margins and lower operating costs. 

On the other hand, the Hamilton real estate market is simply one hour outside of Toronto and the cost of buying and developing land in the city is significantly cheaper. This means that with the same budget, you are capable of developing new properties and real estate opportunities much more easily and with a higher degree of flexibility. 

While you are indeed making the sacrifice of locating your development outside of the ever-tempting Toronto market, it is not really that much of a sacrifice if you look at the bigger picture. Residents of Toronto, the GTA and the Hamilton area are typically very well accustomed to the idea of taking one to two hours to commute to work, school or any other day-to-day activity. So, while you would be locating your development outside of the Toronto area, many of the same potential clients, tenants and businesses will still be available to you due to the unique culture in the region. 

Dedication to Business and Modern Industry 

The Hamilton real estate market is a city that is built upon its dedication to supporting businesses and modern industry. Notably, in recent years the city has made strides towards converting itself into a hub for the Canadian tech industry and a variety of technology focused jobs. In fact, in the tech sector, Hamilton boasts the highest growth rate for new jobs and start-up companies in the entire country. So, if you are looking to invest in the tech industry, Hamilton is going to be a relatively safe place to consider. 

In addition to the city’s overwhelming dedication to supporting upcoming industries such as the technology field, Hamilton also has strong supports in place for all types of businesses in order to help them grow and thrive. This is primarily run through the Hamilton Business Centre. 

This dedication to nurturing and supporting small businesses has created a strong culture of entrepreneurship which is likely to result in an increased need for coworking spaces, office spaces and storefront properties. 

Urban Expansion and New Housing Opportunities In Hamilton Real Estate

The Hamilton real estate market is a city on the verge of expansion. Recently, Doug Ford and the Ontario government ordered the City of Hamilton to expand their urban boundaries in order to permit the development of new housing projects for the city’s growing population. This comes as part of a larger effort to remove the red tape from the development process to combat the housing shortage that has been facing the Ontario market in recent years.

These efforts have been met with some pushback from individuals trying to oppose the impacts of urban sprawl – including Hamilton’s own city council – however the government held firm in their decision. These efforts are on top of some of Hamilton’s existing efforts and guidelines meant to help make it easier to provide additional housing on existing properties as well. 

Largely, with the focus being on creating as many new housing units as possible in order to increase the domestic supply, the city is encouraging the construction, development and expansion of large-scale multifamily properties such as apartment complexes and condominium buildings. 

In order to support and encourage developments such as these in Hamilton (as well as many commercial developments) offers a wide array of grants and financial incentives in order to make these projects more affordable. This includes programs such as the Commercial Vacancy Assistance Program, the Hamilton Heritage Property Grant Program and the Downtown and Barton / Kenilworth Housing Opportunities Program. 

A Strong Business Focus 

Hamilton has always been a city with business at its heart. Notably, Hamilton is shaping itself to become a hub for the Canadian tech industry with the fastest growth rate for mid-sized Canadian cities in terms of new jobs and start-up companies. As well, Hamilton also boats the highest average wages for tech workers in the country, so many technology professionals are turning their eyes to the city in order to further their own careers. 

Beyond the tech sector, Hamilton offers widespread support for new businesses in Hamilton through their Hamilton Business Centre. 

Urban Expansion in Hamilton Real Estate

Recently, the province of Ontario has ordered the City of Hamilton to expand their urban boundaries and life their 30-storey height limit on buildings. While this decision has been met with some pushback and controversy, it serves to lift many of the development limitations that previously prevented investors and developers from building new large-scale housing developments. 

This combined with the city’s allowance for investors to construct laneway housing in the city – an additional housing unit that opens to the back lane or alleyway behind an existing property – makes Hamilton a soon-to-be hotspot of residential investors and developers who want to maximize the number of new doors they are adding to the portfolio while tackling housing shortages in the province. 

Hamilton also offers a wide array of tax incentives, grants and financial supports to help investors create thriving opportunities for both residential and commercial properties. This includes programs such as the Commercial Vacancy Assistance Program, the Hamilton Heritage Property Grant Program and the Downtown and Barton / Kenilworth Housing Opportunities Program. 

Growing Student Populations 

Hamilton is a powerful market for investors who are looking to try their hand at student housing. The city is not only home to five major post-secondary institutions such as McMaster University and Mohawk College, but it is also home to a variety of career colleges and private institutions as well. 

McMaster University alone boasts a student population of over 30,000 students. Of that population, approximately two-thirds come from outside of Hamilton and require housing on top of the existing domestic population. Meanwhile, Mohawk College is home to well over 50,000 full-time and part-time students. 

This means that the demand for student rental properties and affordable rentals for young professions is incredibly strong in Hamilton and its surrounding municipalities. 

Discover How To Develop Real Estate With This Step By Step Guide

Hamilton Real Estate – A Hub for Education 

Hamilton is a city that has made a strong dedication to nurturing not only students and their education, but businesses and their industries as well. Many of the initiatives the city has taken on create a clear game plan to continue to help people in the city learn and grow so that they can continue to elevate Hamilton and its residents. 

That commitment to growth and education is one that we share here at LendCity. While the real estate market can be incredibly complicated and it can be impacted by a wide array of external factors, we are here to ensure our friends and clients are able to build the strongest foundation of knowledge they can in order to make the best decisions for the future of themselves and their portfolios. 

So, if you are ready to begin, please visit our website at LendCity.ca to apply online or give our office a call at 519-960-0370 to book a consultation to discuss you investment goals and the best route forward.

Hamilton Real Estate Professionals

We have searched high and low for real estate investing professionals in Hamilton.  Below, you can find professionals we have researched and can confirm they specialize in working with Real Estate Investors.

To ensure the maximum success in real estate investing in Hamilton, or any city, you should always use professionals who understand and work with investors, your income depends on it.

This list may not fully list all the professionals in the area, but the ones we have personally investigated and that we would refer our clients to.

If you’re a real estate professional and would like us to consider adding you to the list, please contact us.

Mortgage Broker

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If you would like to learn more about how to finance and invest in Hamilton real estate, click the link below to book a free strategy call with our team at LendCity.

Benefits of Real Estate Investing In Ontario for 2023, With Scott Dillingham