Is Steeltown the Next Hogtown?
By Sam R on May 26, 2015
According to a recent report released by Colliers International, a commercial real estate service operating in 67 countries, Hamilton has earned “Anchor City” status, positioning it for significant future growth.
“Hamilton is to Toronto what Milwaukee is to Chicago, with each city having very similar populations,” said Sydney Hamber, senior vice-president at Burlington-based Colliers. “With rising costs and infrastructure strains such as longer commute times associated with locating in large metropolitan areas, companies have the opportunity to locate in medium-sized cities like Hamilton, which have key attributes that make it very attractive.”
Colliers identified Hamilton based on five key attributes, including lower overall costs (compared to Toronto), a highly skilled labour force, redevelopment opportunities, shorter commute times and a full range of lifestyle amenities. Its lower commercial real estate costs are increasingly factoring into location choice for corporations. Cited redevelopment opportunities include upgrading current offices, and relocation incentives through government programs. Hamilton will also get a new GO station soon, making it more accessible than ever.
“People and businesses are drawn to Hamilton for a whole variety of reasons - from our thriving arts and culture scene, job opportunities in Canada's most diversified economy, and the chance to be part of an urban renaissance that is truly exciting,” said Hamilton’s general manager, Planning and Economic Development, Jason Thorne in a release. The report says also that companies are increasingly looking for local amenities for their employees when choosing a business location.
Bella Towers under construction at 150 Main St. West
Hamilton has historically struggled with some reputation issues, but when you look at the numbers, one wonders how much of that is real and how much is simply perception. According to StatCan, the median total household income in Toronto in 2012 was $71,210 — but $80,400 in Hamilton. Crime stats have been trending downwards for years, with an 11% drop in violent crimes in 2013 over the year prior. Before you judge too harshly, bear in mind that Kelowna, B.C., one of the prettiest (and expensive) cities around had the highest crime rate in 2013, and that was after a more than 21% drop from 2008. Between 2008 and 2013, Hamilton’s crime rate went down more than 26%. Its average crimes per 100,000 stood at 4,314.6 in 2013 according to StatCan compared to 3,366.35 in Toronto, significantly lower than Halifax at 5,930.8 and Victoria at 6,214.33.
Many admire the lovely homes on the mountain, but disregard the possibilities in the rest of the city. Yet, according to TD real estate economist Diana Petramala in January, Hamilton is the only substantial Canadian city (out of 14) where home prices are expected to grow over the next two years. BMO Financial said the rest of the country would “scratch out” small gains in 2015, but not so in Hamilton, which they call “one of the firmer” markets in the country. Now compare average home prices: about $400,000 in Hamilton compared to more than $565,000 in Toronto.
Economists having been touting Hamilton as a boom city for a few months now, and you might do wise to consider it before too many people catch on. Assuming Colliers is right and the area is poised to land new corporate head offices and myriad businesses, this could be the affordable real estate investment you’ve been looking for. Like Oshawa to the east, people are starting to realize that there are some very nice homes to be had, and at still-reasonable prices. The amenities are good, and the commute times to Toronto, should you have to consider them, not crazy.
Could your thinking about Hamilton be due for a renovation of sorts? If you can overlook any residual perception issues, you stand to gain substantially — in square footage right now, and in appreciation in the future.
