This article is courtesy of Evan Wright, Plex Realty Sales Representative
Is the Hamilton real estate market still worthy of consideration?
Outlier communities are attractive to both real estate investors and first-time home buyers alike. There are several standard reasons for this, but one of the most prominent ones is that people are not necessarily needed at the office as frequently post-pandemic. They are looking for more for their real estate dollar than they can get in Toronto. It is only natural to look outside the Big Smoke, and one of the most popular choices is the City of Hamilton.
According to Canadian Wealth Magazine, the 2-bedroom bungalow you can potentially nab in Toronto for just over $1,000,000 can be had in The Hammer for $650,000. This is quite a large disparity for cities that are essentially 40 minutes from one another. The average home price in 2020 in Hamilton was just over $556,000.
Hamilton has a lot of attractive intangibles; close proximity to Toronto, fast-growing industry in the Health, Education and Hospitality sectors, one of Canada’s most diverse economies, and a rental housing supply that is going to lag behind ever-growing demand. The demand for housing is not going to slow down either, with increased immigration targets to 400,000 per year over the next 3 years.
The City of Hamilton lists continued economic expansion, an ever-younger demographic, limited housing supply, and quality of life considerations as the main factors in determining future housing costs – all metrics that point to steady increases in value over the short and long term.
With infrastructure investment on the rise, the ever-lasting promise of better transit options from Niagara to Durham, increased Laneway and Carriage Housing permits and a balanced demographic of families wearing both white and blue-collared shirts, Hamilton promises to be an attractive and viable option for long-term investment in real estate.
Let us look at the current state of the market in Hamilton. As of the beginning of July, there are 62 multi-unit listings for sale, concentrated in the downtown area, ranging from 2-unit dwellings from the low-$400’s, to 20-unit residential / commercial mixes at approx. $6M.
If you are interested in some detailed listing analysis, feel free to reach out to discuss the available options.
Evan J. Wright
Real Estate Sales Representative
PLEX Realty Corp., Brokerage