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At the bottom of Ontario, along the Detroit River lies a market that has gone under appreciated for years. Windsor Ontario is a unique city largely characterized by its close relationship with the city of Detroit Michigan across the water.
While the city has begun to catch the eye of investors from outside markets, the truth is that the city still has one of the lowest average home prices when compared to the average household income.
So, if you are interested in investing in a market that is packed full of investment potential in 2023, here is why Windsor may be the perfect market for you. Alternatively, you can click the link below to book a free strategy call to discuss your Windsor real estate investments.
Windsor Real Estate – A Connected, Cross-Border Lifestyle
The lifestyle in Windsor is largely influenced by the city’s easy access to the United States through the Ambassador Bridge and the Detroit-Windsor Tunnel. As a result many of the city’s residents work, shop or visit friends and family in the city of Detroit and surrounding cities. Of course, this results in the inverse being true as well as Americans frequent the city for work and other day-to-day activities.
This interconnected lifestyle leads to people who have American relatives or a consistent need to cross the border to move to Windsor in order to make things more convenient and shorten their commute. It also bolsters the local short-term rental market with working Americans often renting Airbnbs and other properties to accommodate themselves when they need to spend longer periods on the Canadian side of the border.
The city’s unique position also attracts people into surrounding towns in Windsor-Essex county such as Amherstburg, Essex, Tecumseh and Lakeshore which share a distinct yet inseparable identity with Windsor with hundreds if not thousands of people from each municipality visiting and working in the surrounding areas almost daily.
The Windsor Real Estate Market is Affordable
Windsor is also known for having relatively affordable real estate compared to other cities in Ontario. With an estimated average purchase price of $535,000 at the time of writing this article, it is no surprise that the Windsor real estate market is quickly growing.
In fact, compared to the average home price in 2016, the value of properties in the city has more than doubled in the last six years and prices continue to trend upward year-over-year. This means that on top of the monthly cash flow being received from a property, investors in the region have been experiencing great deals of appreciation on their investment properties and many expect that trend to continue as Windsor makes additional investments into the city and its markets.
In regard to rental rates, the average median rental price in Windsor is $1325 per month, which is relatively affordable for renters while also providing the potential for a meaningful amount of cash flow for the investor each month.
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Incoming Jobs and Developments in the Region
One of the key reasons that the city is expected to continue to grow is the number of key developments coming into the city in the coming years. These are major projects expected to bring new jobs into the market while also improving the value of key services and industries within the city.
Some of the most notable developments that are expected to impact the job market are:
Canada’s First Electric Vehicle Battery Plant
Windsor is set to become the home to the first electric vehicle battery plant in Canada. This $5 billion dollar facility is a venture set forth by Stellantis and LG Energy that is expected to employ over 2500 people and has the potential to grow with time as Canada pushes for more individuals to buy electric vehicles over gas-powered alternatives.
Gordie Howe International Bridge
Windsor is known for its current international crossings in the form of the Ambassador Bridge and the tunnel under the Detroit River. However, the city is currently working on a third crossing in the form of the Gordie Howe International Bridge. This would increase the city’s capacity to facilitate cross-border travel while creating additional jobs in border security and maintenance with a strong potential to see a rise in tourism.
Windsor’s Mega Hospital
Windsor is expected to build a new “mega hospital” that will be operational by 2029 if the current timeline is maintained. This $2 billion dollar project would increase the need for healthcare and support jobs while also making the city more hospitable for residents with health concerns who rely on up-to-date medical facilities and technologies to maintain their lifestyle.
Leveraging the Detroit River with Windsor Real Estate
One of the key reasons why Windsor makes such an ideal commercial market is the ability to leverage the city’s location along the Detroit River. This location provides Windsor-based investments with access to both Canadian and American markets in terms of both trade and tourism. Notably, bars, restaurants and other establishments that serve alcohol in Windsor see a great deal of business from Michigan residents who chose to spend their weekends on this side of the border to circumvent the American legal drinking age of 21.
This also bleeds into the hotel and short-term rental industries as many American visitors would rather opt to stay the night in Windsor and return home on their own in the morning than rely on cabs, designated drivers and the tunnel bus service in order to return home at night.
Housing the Newcomer Population in Windsor Real Estate
Windsor has been a popular location for newcomers to Canada to settle and begin to plant roots for many years now. However, in recent years, an increased investment into the international student programs at St. Clair College and the University of Windsor has increased the number of newcomers who are flocking into the city. As a result, the demand for housing in the city has begun to spike as these students and their families look for affordable accommodations.
This in turn has created a new demand for large-scale multifamily developers to come into the region in order to construct their housing projects. That means that large apartment complexes, condominiums and townhouse developments are among some of the largest in-demand properties in the city.
As well, many of these newcomers are people who wish to start their own businesses, which means that commercial properties such as storefronts, restaurants and office spaces have also seen an increased demand in recent years.
Student Living in Windsor Real Estate
The Windsor real estate market is great for student rentals due to the presence of both the University of Windsor and St. Clair College in the city. Notably both of these schools have substantial international student populations that lead to a large percentage of students requiring housing due to them moving to Canada alone for school a large percentage of the time.
Local culture in Windsor Real Estate
Of course, when you’re looking to invest, it’s smart to know who you might be renting to. Windsor has plenty of local history, from First Nations tribes to French settlements and American entanglements during the War of 1812 Civil War and Prohibition, which is reflected in its numerous historical museums and districts.
Windsor is nicknamed “The City of Roses,” and its outdoor gardens are part of its robust horticultural and sculptural art community. There are plenty of outdoor gardens to enjoy, but the largest may be the park stretching across the Detroit River and overlooking its skyline, home to the Windsor Sculpture Park. There is also a beach and plenty of nature to enjoy, making it a great place for urban outdoors people.
Notably, the city is a place for young Americans to cross the border and enjoy drinking at a younger age than they can enjoy in their own country. Windsor is also a popular gambling destination for Canadians and Americans alike—Caesar’s Windsor brings in over six million gamblers per year.
With a rich history and affordable living, Windsor is a smart place to invest. This urban area is specifically devoting time and effort to bringing in a new wave of workers, which means that if you invest here, you’ll be setting yourself up for investments that will appreciate over time.
Windsor Real Estate – Living in the Rose City
If you are interested in investing in a unique market with plenty of untapped potential for you to explore and expand your portfolio, then Windsor may be a great place for you.
Of course, if you want to make the best investments with the most room for you to continue to expand, you need to begin with a mortgage that is suited to your specific investments and portfolio. That is why at LendCity, our team takes your application across our network of lenders to secure you the best available mortgage for your specific needs.
Windsor Real Estate Professionals
We have searched high and low for real estate investing professionals in Windsor. 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 Windsor, 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 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.