A booming real estate market across Canada — including in Windsor-Essex in Ontario — has meant that for some investors, opportunities are drying up, and they’re turning their efforts toward the United States.
As recently as five years ago, Windsor’s properties were a steal. But with the average price of a home selling at a record $636,422 in the region in January — a 10 per cent jump from the month prior, and about 26 per cent more from the same time last year — investors say, thanks to bidding wars and dwindling profit margins, there are fewer opportunities to invest locally.
“When the prices are too high, they’re going to be looking at the outskirts,” explained Danial Malik, a broker at ReMax Preferred in Windsor
The outskirts are not just communities in the county, but out of province, as well as south of the border.
“These buyers are going to the states to look for more opportunities since they know that the prices are a little bit easier to access,” he said.
Investors look south
Local entrepreneur Dan Crosby was among investors who started looking for a different means of investment.
“I started looking outside of our own backyard here, and American real estate really caught my eye,” he said.
WATCH | Local investors at Coachwood Capital explain why they turned to the U.S.:
Investors look elsewhere
7 hours ago
Duration 1:24
Investors at Coachwood Capital explain why some are looking to the other side of the border for real estate opportunities. 1:24
He even turned it into a business model.
Crosby said his firm, Coachwood Capital, which launched a couple of years ago, has simplified the process to invest in larger-scale investment properties like condo buildings on the other side of the border.
In the last two years, with a team of at least 30 investors, most of whom are from southwestern Ontario, the firm invested in a building in North Miami as well as a building in Canton, Mich. Both are senior-focused rental properties.
Between a booming market and certain tax benefits in the United States, Crosby explained the cash returns are sometimes triple or quadruple that of a southwestern Ontario investment.
Opportunity for a young investor
For 22-year-old Humza Mirza, buying a home in Windsor-Essex at his age, fresh out of school, seemed out of reach. But through his job with Coachwood Capital, he’s now part-owner of the Miami building.
The housing market in Windsor-Essex hit a record high in January. (Katerina Georgieva/CBC)
Mirza said it would have a difficult accomplishment to achieve on his own locally, given the competitive Windsor real estate market.
“Not many people my age can really front the amount of capital [needed to buy a home]. And essentially, you’re just kind of kicking the can down the road,” he said.
This option also attracted Windsor real estate agent Scott Innocente to invest with the firm and join as its market analyst.
“It’s definitely getting more difficult to buy properties [in Windsor-Essex] that are producing the returns that we’re used to,” he said.
Fewer investors could mean a calming market
Maggie Chen, broker of record for LC Platinum, said the window of investing for profit is slowly closing locally.
She predicts that though prices are still on an incline, this is the year when the market will finally settle down.
WATCH | Broker of Record Maggie Chen says a shift will come, but it’ll take time:
Maggie Chen
7 hours ago
Duration 0:31
Maggie Chen explains that, while investors are still very much continuing to buy in Windsor-Essex, she predicts a shift is coming, and with that, the possibility of relief in the market down the road. 0:31
A big reason for that is because investors are starting to realize they won’t be able to maintain cash flow as prices continue to rise.
“If you cannot rent it out for $2,500 per month, you are not able to keep the property without paying out of your pocket every month. Imagine then, what’s the point of investing if you have to pay out of your pocket unless you have the confidence that this market will keep growing?” Chen said.
She noted several of her clients are also looking elsewhere to invest, with Calgary being “the hottest topic” because of its housing prices.
While investors are still continuing to buy in Windsor-Essex, she predicts a shift is coming, and with that, the possibility of relief in the market down the road.
“Yes, I think if the investors stopped coming into our community, it’ll take some time for this market to relax a bit,” Chen said.
“So it’ll be more space for us, for all of us to breathe.”
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
