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The Electric City of Peterborough Ontario is home to a thriving tourism industry and a rich history based in the electric and industrial development of Canada. However, does the Peterborough real estate market hold the potential to become home to your upcoming real estate developments and investments?
This city located between the major population centres of Toronto and Ottawa is home to a humble population of approximately 84,000 residents with nearly 44,000 more living just outside of the city limits in various towns that make up the larger Peterborough County for a total of 128,000 people estimated to live in the region.
Some people may question why a market such as this is such a standout investment location when larger, more heavily populated markets are located so close by. However, if you take the time to truly understand the bigger picture it is clear why Peterborough real estate is home to some great potential.
However, before we dive into the Peterborough real estate market, if you would like to learn how to find the best lenders to finance your Peterborough real estate investments, click the link below to book a free strategy call with our team here at LendCity
An Electric History
First, it is important to understand how Peterborough earned its reputation as The Electric City in Ontario. This comes from a few key developments that quickly revolutionized the way that Canada built key municipal infrastructure and conducted major industrial productions.
The first of these developments is the electric streetlamp. While they are commonplace today, Peterborough was the first city in Canadian history to install electric streetlights on its main downtown street back in 1884. This forward-thinking development made the city home to many innovators and inventors who wanted to be part of the innovation that was set to follow.
In fact, in the same year the city built its first hydroelectric plant – London Street Hydroelectric – in order to generate cheap electricity for the American Cereal Company which would later become known as Quaker Oats. This made Peterborough one of the earliest adopters of this affordable means of energy production – even earlier than Niagara Falls.
While many companies that used to be the industrial backbone of the city have slowed production or moved into cheaper markets, the city is still home to successful businesses in the industry and has the infrastructure needed to support new businesses moving into the area.
The Thriving Tourism Industry
While industry has been slowing down in the city, the local tourism industry is alive and well.
Peterborough and the surrounding county are home to a variety of tourist attractions and events that draw thousands of people into the city to experience many of the unique opportunities offered in the area. This includes rustic experiences such as the Farm to Forest Getaway and Paddle Carving at the Canadian Canoe Museum. The city is also home to various festivals which bring many visitors into the city.
As a result, the demand for short-term rentals in the city his quite high with the average occupancy rate for Airbnb rentals in the city sitting at approximately 57 per cent and the rate rising to 87 per cent at its peak in the month of August.
Similarly, hotels and other vacation rentals in the city are often reliably occupied, especially during the summer months.
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Developing New Housing to Address the Vacancy Rate
Peterborough has one of the lowest vacancy rates in the country at the moment with an estimated rate of 1 per cent in October of 2022 – lower than anywhere else in Ontario. This can be great for property owners who want high rent yields with low turnover risks, but without new housing being added to the city it is simply unsustainable.
That is why the city is in need for developers who wish to build large-scale multifamily properties in the city and surrounding region in order to massively alleviate the stress being put onto the Peterborough real estate market so that the city can continue to grow and thrive for years to come.
This includes properties such as large apartment complexes, condominiums, and townhouses. Of course, some people will always want to rent a single-family home over an apartment or shared property, so developers seeking to build subdivisions and larger housing developments are also in demand.
A Growing City Needs Room for Business
Obviously, housing is not the only type of development required in Peterborough. As population numbers rise, the number of new businesses and amenities needed in the city is growing as well. This means that people are constantly looking for retail space, offices, workshops and more.
Notably, the growing population of Peterborough has put a large amount of stress on some of the existing supermarkets and grocery stores, making these types of properties a welcome development for many residents who are currently finding it difficult to get their groceries.
Peterborough Real Estate – A City Charged with Demand
Overall, Peterborough is a city packed full of demand for new housing developments and real estate expansion. So, all it needs now are investors and developers who are ready to take the next step and begin making strides to fulfill the demand being created by the Peterborough real estate market.
However, in order to ensure that you developments and investments are successful enough to stand the test of time and address the hole in the market, you need to make sure you secure financing that provides you with the room to grow, expand and adapt while working towards your goals.
That is why at LendCity, our commercial financing department is proud to match you up with the best available mortgage products from lenders who are best suited to assist you with your projects and investment goals. That way you can spend less time focused on the money and more time focused on progress.
To get started today, all you need to do is give us a call at 519-960-0370 to book a consultation or apply online at LendCity.ca
Peterborough Real Estate Professionals
Here is a list of trusted professionals that service Peterborough real estate investors.
Mortgage Brokers
LendCity Mortgages
If you would like to learn how to finance and invest in Peterborough real estate properly and successfully, click the link below to book a free strategy call with our team at LendCity.