A Southwestern Ontario city has emerged as one of the country’s next real estate investment hotspots.

Windsor has spent the last decade rebuilding its economy after languishing through the Great Recession. Although the city doesn’t receive much fanfare, savvy Toronto investors have had their sights set on the city for a while.

According to the Windsor-Essex County Association of Realtors, sales in the city increased by 6.31% year-over-year in November, while the average sale price rose by 24.14% to $420,007. New listings also grew by 9.74%.

Windsor’s rental vacancy rate was 2.9% in October and its rental supply has gone up 7.5%, according to Anna Vozza, a sales agent with Bob Pedler Real Estate Ltd., who noted that multi-family residences have become popular purchases.

“We had a well done duplex in the middle of the city, which would usually go for no more than $250,000, but it sold for $502,000 last month,” she said. “It was a basic duplex.”

Given that the average sale price of a Windsor home in November was less than half of what it was in Toronto—according to the Toronto Regional Real Estate Board, the average selling price was $955,615 last month, up 13% from November 2019—it’s no surprise that Torontonians see the potential in the border city.

“For retirees, it’s a great place because if you’re in Toronto selling your home, you can buy something here in Windsor and still put money away in the bank,” said Vozza. “I see Toronto buyers here, on average, twice a month because you can get an income property with an 8-9% cap rate. I don’t think you can get that in Toronto. We have a university, a college, and we’re a border city, so there’s never an issue with renting.”

A recent analysis by Money Sense identified Windsor as the top Canadian city in which to buy real estate. The average house price is $313,146 and the five-year average rent increase is 11.14%.

Continue to read on: CanadianRealEstateMagazine