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If you are looking to invest into a city that is home to both great tourism potential and a favoured city for Canadian retirees, Peterborough may be the place for you.
Located between Toronto and Ottawa, Peterborough is a modest city with an estimated population of over 84,000 people, and a total of roughly 128,000 people if you include the sounding towns that make up Peterborough County.
However, what truly makes Peterborough real estate valuable is its thriving tourism sector both within the city and in surrounding regions as people pass through to the Kawartha Lakes.
So, if you would like to learn more about how this city maintains such a strong amount of potential for real estate investors, let’s dive in together.
But first, if you would like to learn how to properly invest and finance Peterborough real estate, click the link below to book a free strategy call with our team at LendCity.
An Electric History in The Peterborough Real Estate Market
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.
Tourism in Peterborough Real Estate
One of the reasons that it is great to invest in both short and long-term real estate in Peterborough is the city’s history of strong tourism industry that attracts both long-term residents who want to live somewhere entertaining and fun, and travelers who wish to take part in the excitement.
One of the main year-round tourism draws in Peterborough is the variety of local attractions the fill and enrich the city. These include a variety of museums, heritage and cultural exhibitions, theatres, and art galleries.
There are also many unique experiences offered for people to explore in the region including the Farm to Forest Getaway, and Paddle Carving at the Canadian Canoe Museum. These and many more tourism experiences offered in the city are meant to offer a relaxing, rustic, old-fashioned experience that you cannot typically find in other major tourist markets.
The city is also home to a variety of events that draw crowds such as Peterborough Folk Festival or Peterborough Music Fest – two local music festivals that offer plenty of entertainment that attracts thousands into the region who will need a place to stay during their stay.
Education in Peterborough Real Estate
For students looking for a place to live and study, Peterborough is a great option to consider. With four major post-secondary institutions and a variety of career colleges in the city, there are options for all kinds of people looking to further their education. The schools in the region include Trent University, Fleming College, Kawartha Lakes Bible College, Master’s College, and Seminary, and more.
Discover How To Buy Unlimited Rental Properties With This Step By Step Guide
Affordable Family and Retirement Property in Peterborough Real Estate
Many of the residents who populate Peterborough are one of two types of people, families looking for an affordable place to live, or retirees who want a quiet location to spend their retirement years. Fortunately for both of them, Peterborough provides the ideal location and market conditions for both of those groups.
While the current estimated price to buy a home in Peterborough is approximately $700,000 at the time of writing this article, there are plenty of excellent properties that sit well below that average that do not require a ton of work to make move-in ready. However, for those looking to provide a luxury rental experience, there are higher-end homes on the market that you can also consider.
The current average rent in Peterborough is approximately $1600 per month and the rental market is tightening. Compared to last year alone, rents in the city are 13 per cent higher and well outpacing the rate of inflation currently facing Canadians. So, that means that rentals in Peterborough will usually remain a strong investment and contribute to long-term success for opportunistic investors.
However, it is important to note that over the last few years, Peterborough has experience large amounts of growth and as a result rental rates and housing prices are trending higher than they used to. Fortunately – at the time of writing this article – the market is currently slowing down across the province so there is currently time to dive into the market before prices climb back up.
Developing New Housing to Address the Vacancy Rate in Peterborough Real Estate
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.
The Peterborough Real Estate Market Needs Room for New 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.
The Employment Market is Strong
Currently the average unemployment rate in Canada is 5.2 per cent and the provincial average in Ontario is 5.2 per cent. However, the current estimated unemployment rate in Peterborough is only 4.8 per cent – lower than both average rates. This shows that the job market in Peterborough is generally more stable and reliable than that in other parts of the country.
In addition to that the average household income in the city is approximately, $81,000 before taxes while the provincial average is currently estimated to be $80,000 before taxes. (However, the median household income for the province does hold higher than the median for Peterborough residents.)
Peterborough Real Estate – An Electric Tourism Hotspot
The Electric City is alive and growing with plenty of life and culture around the city constantly flowing in order to make the city a great place to live for residents of all ages.
Overall, if you’re thinking about investing in Peterborough, now is the time to make your move. As the area becomes increasingly attractive to commuters, and as the CMA continues their economic development plan, prices will likely rise over the next decade. Market your properties to families, retirees and vacation renters, and you’ll undoubtedly have excellent luck with your portfolio. Between tourism and steady population growth, this area is one of the hottest hidden gems in Ontario.
However, if you plan on making this city home to your next real estate investments, you need to secure the best available financing in order to keep your investments on track and moving forward. That is why at LendCity we try our best to match you with the best available products from the best available lenders for each and every one of your investment properties.
Peterborough Real Estate Professionals
We have searched high and low for real estate investing professionals in Peterborough. 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 Peterborough, 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.