Thunder Bay held first place for two consecutive years, but Guelph has knocked it down to fifth. So, why’s Guelph such a great place to buy a home? The average home costs around $441,000, which is more than four times the average income, but it is still affordable compared to Toronto. The areas were ranked on criteria like income potential, sustained price growth, and the strength of its economy.
Guelph’s economy is strong thanks to a tiny unemployment rate and the success of large manufacturing companies, green tech firms, and support of high paying government and education positions.
When it comes to investing for the purpose of generating rental income, purchasers will love Guelph. Over the last five years, monthly rent has gone up by 20% and the vacancy rate is below 1%. Investors will have no problem finding a tenant.
In 2016, Guelph home values went up 16% on average, and it’s not because of a shortage of supply like in Toronto and Vancouver. Guelph’s market is pretty balanced; it’s the factors mentioned above that are driving values up.
Over the last couple years, we’ve seen a lot of success stories out of Guelph. Reid’s Heritage Homes recently sold out Clairity, a boutique condo development, and they have a Net Zero Ready community in the works, which features luxury, energy efficient detached homes.
Granite Homes has seen tremendous success at Gallery Towns and Arkell Lofts. Gallery Towns was named the Most Outstanding Multi-Unit Home in 2015 by the Guelph and District Home Builders Association.
Fusion Homes has a number of communities in Guelph, including Enclave at Pergola, Solterra, and The Metalworks. There is only one home available at Enclave at Pergola; there’s a new release coming soon to Solterra, and The Metalworks is a big master-plan with a variety of unit sizes and styles.
It’s worth noting that Vancouver is still high on the list in the eighth position, though the average home costs more than $1 million, which is more than 10 times the average income. The economy is strong, which seems to outweigh the affordability issue.
Toronto is in 13th with the average home costing $753,528 – seven times the average income. Over the last five years, rent has gone up 18.3%. Some believe rent will continue to skyrocket with the tight market.
Does MoneySense’s 2017 Where to Buy Now ranking affect where you plan on buying a home?