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Located approximately one hour outside the bustling city of Toronto, the Kitchener real estate market is a unique market that provides a taste of big city investing without the pressure of a crowded and over-publicized market.
This city in southwestern Ontario is home to a population of approximately 257,000 people. However, due to the unique local culture, the city is often populated and visited by residents from the surrounding municipalities of Waterloo and Cambridge.
Between the city’s prime location, strong connections and thriving cultural scene, it is no surprise that investors have been able to find great success in Kitchener and continue to do so to this day. So, if you are interested in learning more about the investment potential hidden within Kitchener, you are in the right place.
But first, if you would like to learn how to finance your Kitchener real estate investments today, click the link below to book a free strategy call today.
An Interconnected Location
Whenever you talk about Kitchener, it is nearly impossible to avoid mentioning Waterloo and Cambridge – and for good reason too. While the city of Kitchener stands strong and independent with its population of over a quarter-million people, the city maintains strong ties with its surrounding municipalities to the point that many residents view popping over to a neighboring city as a normal day-to-day activity in order to go to work, visit friends or attend school.
This culture is excellent for investors who want to invest in nearby markets for their amenities but are faced with better options to buy in Kitchener. Similarly, it makes short-term rentals popular in Kitchener for the visitors who make the trip into Kitchener for its nightlife, tourism draws or other amenities and do not want to make the trip back home in the night.
Key Business Sectors in Kitchener Real Estate
Kitchener’s economy is largely centered around five key industries that help contribute to the city’s unique economic landscape. These key employment sectors are:
The manufacturing industry has always been crucial to the economy in Kitchener and the greater Waterloo Region of Ontario. Currently, the region is home to over 49,000 people who work in the industry in Kitchener and the surrounding municipalities. This makes the region the fourth largest manufacturing hub in Canada.
While not located directly inside of Kitchener, the aerospace industry is a major employer for people in the city. With the Region of Waterloo International Airport – also known as the Kitchener/Waterloo Airport – located in the town of Breslau Ontario, many of the top aerospace jobs in the province are located in this city. In fact, the region is home to more than 85 aerospace businesses which employ more the 3200 residents.
Kitchener is home to plenty of jobs in the automotive industry ranging from research and development to manufacturing. Employers in this sector range from independent startups to research institutions, to major automotive companies such as Toyota.
Food Processing in Kitchener
The food processing industry is alive in this region with an estimated 56 per cent more jobs in this sector located within Kitchener and the Waterloo Region than the national average. This equates to over 5700 jobs in this sector since the last study conducted in 2016.
Technology and Digital Media
With over 1500 tech businesses, Kitchener and the Waterloo region are becoming home to some of the largest players in Canada technological future. These businesses are quickly redefining how businesses and infrastructure are created and operated in Canada. The city also sits along the Innovation Corridor which spans to Toronto – a region characterized for its high volume of startups and tech companies.
Lively Local Culture
Formerly known as Berlin Ontario, there is no surprise that Kitchener is known for it’s lively German culture scene. Out of every city in the Waterloo Region, Kitchener is home to the highest number of people of German heritage. Of course, while the city is proud of its German culture today, strong anti-German sentiments during the first World War resulted in the city changing its name to Kitchener in 1916.
Today, one of the largest cultural events in Kitchener is the Kitchener-Waterloo Oktoberfest celebration. This nine-day event is the largest Bavarian festival in the world outside of Germany. Each year, this event attracts a total of approximately 700,000 people into the city to take part in the festivities.
Other major cultural events include the Open Ears Festival, the Kitchener Blues Festival, the KOI Music Festival, and the IMPACT Theatre Festival.
For year-round entertainment, the city is home to plenty of parks and attractions that people are free to visit and enjoy. These include things such as Victoria Park, the city’s oldest outdoor park, the Kitchener-Waterloo Symphony, and the Kitchener-Waterloo Art Gallery.
There are always new workers and students looking for homes to rent Kitchener Real Estate
Kitchener offers plenty of new opportunities, so many people move to the city for work. Larger employers in the area include Research In Motion, the Grand River Hospital, Toyota Manufacturing, Sunlife Financial and many more. The employees for these companies and others in Kitchener are always looking for starter homes and other properties.
Another force driving the Kitchener real estate market are the various higher education options, including Conestoga College and Emmanuel Bible College. These schools bring in plenty of students throughout the year, who are always looking for apartments and other rental properties. The University of Waterloo, which currently has a total of 36,000 undergraduate and 6,200 postgraduate students, is also located nearby.
The Demand for New Housing in Kitchener Real Estate
Much like most major Ontario cities, Kitchener has been going through a period of massive growth in recent years that has put a great deal of stress on the Kitchener real estate market. That means that in order to stay on top of the city’s needs, there is a great deal of new housing required in the coming years.
Currently the city has an estimated vacancy rate of two per cent, which is less than the recommended three to five per cent a city should strive to maintain.
As a result, developers are being incentivized to build large multifamily properties in order to add multiple units to the city’s housing supply while occupying a smaller footprint to discourage sprawl.
The Kitchener Real Estate Market
Compared to other major cities in Ontario, Kitchener offers some competitive housing prices, especially when compared to prices only one hour away in Toronto. This makes it both an investor friendly and resident-friendly market for people to explore and invest into.
Buying Kitchener Real Estate
At the time of writing this article, the average price for a detached home in Kitchener is less than $800,000. While this is not necessarily the most beginner-friendly pricing, for established investors looking to move into larger cities, this is an excellent price for a city of its size.
Average Rental Costs in Kitchener
By comparison, the average rental price for a two-bedroom house in Kitchener is approximately $2200. This means that while the initial purchase price is often going to be slightly above average, the average rental rate is still high enough for you to turn over a generous amount of cash flow while building equity in the property.
The vacancy rate in Kitchener is currently an estimated two per cent. This is great for investors who want to buy rentals with the confidence that turnover will not leave their properties unoccupied for months on end. However, such a low vacancy rate does make it difficult for residents to move and find new rentals, which has resulted in the city pushing to create new housing to increase the vacancy rate by an extra percent or so.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Kitchener Real Estate – The Value of Investing in the KWC
Kitchener is an excellent investment market for people looking to build their portfolio in a uniquely connected region such as Kitchener-Waterloo-Cambridge. This area is known for being incredibly accommodating for its residents with strong intercity infrastructure that can allow local residents to access whatever they may need within city limits and in surrounding towns.
Similarly, our mortgage agents at LendCity are connected with a wide variety of lenders so that regardless of your plans as an investor you can rest assured you are receiving the best available financing for each of your investments every step of the way. That way you can remain focused on achieving your goals while our team does the shopping for you.
In order to get started with us today, all you need to do is visit us online at LendCity.ca to fill out our easy online application or give us a call at 519-960-0370 to book a consultation with a member of our team.
Kitchener Real Estate Professionals
We have searched high and low for real estate investing professionals in Kitchener. 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 Kitchener, or any city, you should always use professionals who understand and work with investors, you’re income depends on it.
This list may not fully list all the professionals in the area, but the ones we have personally looked into and that we would refer our clients to.
If you’re a Kitchener real estate professional and would like us to consider adding you to the list, please contact us.
If you would like to book a free strategy call with our team at LendCity, click the link below to book your call today.