City Suburbs the Core of Real Estate Growth Trends
Buying a home for future investment purposes? Forget downtown Toronto – go to the suburbs instead. A number of experts suggest that insatiable demand for larger, cheaper homes in suburban centers such as Milton, Mississauga, Oakville and many others across the country are much more sought after than properties in the city, especially since many of them offer much smaller living space for the same price. In other words, because there is a heavy demand for suburban homes compared to city-center properties, it is more prudent to invest in suburban properties for the near future.
Certainly, the numbers have strengthened the arguments the supporters of this particular viewpoint. With Toronto property sales losing steam over the past few months (with a massive 1/3 drop in home sales activity in the city), suburban regions are not only much cheaper than properties within city limits; they are also much more sought after by local residents. This is not only because of their lower prices – it can also be because of the fact that many prefer a quieter setting to live compared to the loud atmosphere that defines life in the big city.
In addition, data provided by a local statistics company has pointed out that in many cases, population growth in the suburbs compared to the city has often doubled in growth rates. For example, within the last five years, Toronto has seen a population growth of over four percent, compared to nearly eight percent growth for its suburbs. Vancouver has seen a similar pattern, with over seven percent growth in the suburbs compared to a 4.5 percent growth of people living in the city. Montreal has continued this pattern, with over five percent and just below three percent growth for suburb population versus the city, respectively.
While the growth rate slowed down over the past
five years, this disparity in growth rates was even higher ten years ago, where
the suburban population grew nearly three times as fast as Toronto’s city
population between 2006 and 2010. By looking at this data, as well as taking into account the strong cost
differences when it comes to home prices between the suburbs and various city
centers, is it abundantly clear that growth rate – and therefore property
demand – will only increase within the suburbs, and this means that there are
ample opportunities for investment. Of course, while one certainly will not
double their investment overnight, it sure seems like a sound strategy.
Published Date: Jun 22 2017