Real estate is an amazing way to earn money over the short and long term by putting in little effort. The value of real estate properties typically appreciates over time, increasing an investor’s profits, especially if the investment is for the long term.
Realizing the profit potential of real estate properties, many Canadians and foreign investors are buying properties in hot real estate markets. We know what you may be thinking now – which Canadian city is best for putting your money into?
Traditionally, real estate investors leaned towards big cities like Toronto and Vancouver due to the high demand of these cities. However, times are changing and small and mid-sized cities in Canada are emerging as hotspots for real estate investors nowadays.
One such hidden gem in Canada with exceptional Return on Investment (ROI) potential is “Niagara Falls.” Niagara Falls attracts over 30 million visitors annually, driving demand for short-term rental properties. The city’s population is also projected to grow by 12% by 2031, increasing demand for houses for sale in Niagara Falls.
Below, there are 6 reasons why you should consider investing in Niagara Falls in 2024!
Top Reasons Why Niagara Falls Real Estate Is a Prime Investment Opportunity
1. Strong Tourism Industry
As mentioned above, many tourists from within the country and overseas come to visit Niagara Falls every year. The city attracts over 30 million visitors in a year which generates about $1.2 billion in tourism revenue.
Summer is usually the peak season when Niagara Falls sees the footfall of a large number of tourists. However, tourists stay in the city year-round, thanks to the festivals, events, and of course the stunning natural beauty of Niagara Falls. So, as an investor, your home for sale in Niagara Falls can help you earn year-round income from tourists, with slight seasonal fluctuations.
Tourists in Niagara Falls usually stay for around 2-3 days. This means it will be more beneficial for you if you use your investment property as a short-term rental instead of long-term. Your short-term rental can help you earn a significant profit, especially during peak season when hotels get filled up quickly and tourists start looking for rental properties.
You can buy a few detached houses for sale in Niagara Falls near popular tourist attractions and use them as a vacation home. This vacation rental property will attract families and tourist groups looking for larger spaces and amenities like kitchens and backyards. You can also invest in a condo or apartment in Niagara Falls to entice couples, solo travellers, and tourists on a budget.
2. Growing Population
Elaborating another point from the introduction – the growing population of Niagara Falls and the benefits it brings to real estate investors.
The Niagara region population is projected to grow by 12% by 2031. This means the city will see a huge influx of new residents in the coming years, potentially exceeding 100,000 people.
More residents mean more competition for available Niagara Falls homes for sale, driving up property prices. With higher demand pushing prices up, investors will see the value of their Niagara Falls properties significantly increasing over time.
The growing population also means more potential tenants for your Niagara Falls rental property. This gives real estate investors a better opportunity to earn a stable and potentially increasing income.
3. Relatively Affordable Housing
Compared to major cities, houses for sale in Niagara Falls Ontario are more within reach for real estate investors, budget-wise. The average price of a property in Niagara Falls was just $558,300 in 2023.
This lower price barrier makes Niagara Falls an attractive option, especially for first-time investors who might be struggling with affordability issues in larger cities. Niagara Falls is also a great choice for seasoned real estate investors looking to diversify their portfolios. The city allows investors a chance to invest in a growing housing market with lower initial costs, spreading their risk and potentially increasing overall returns.
Due to affordability, rental rates of a home for sale in Niagara Falls are usually higher as a percentage of the property price. This translates to potentially higher rental yields and quicker returns on investment for an investor.
4. Stable Rental Market
Niagara Falls has a stable rental market, thanks to the city’s growing population and constant flow of tourists. Air DNA reports that the average annual gross rental yield for Niagara Falls Airbnbs was 13.3% in 2023. Whereas the long-term rental yields of houses for sale in Niagara Falls range from 2.34% to 5.26%.
If you are looking for quicker returns on investment, it is wise to invest in a short-term investment property in Niagara Falls. Despite potential market fluctuations, the consistent tourist flow and growing population guarantee a stable cash flow for investors with short-term rental properties.
Niagara Falls’ growing population and ongoing revitalisation efforts (more details on it below) also doubles the potential for long-term value appreciation of homes in Niagara Falls for sale. This offers real estate investors an incredible opportunity to build wealth over a long time.
5. Proximity to Major Centres
Niagara Falls is located in close proximity to several major cities in Canada and the United States –
- Toronto, Ontario – 132 kilometres, approximately 1 hour and 15 minutes drive.
- Buffalo, New York – 35 kilometres, approximately 30 minutes drive.
- Hamilton, Ontario – 98 kilometres, approximately 1 hour drive.
This makes Niagara Falls a convenient option for professionals who prefer a quaint lifestyle but have to travel to the big cities for work.
So, what does this mean for you as a Niagara Falls real estate investor? With more young professionals preferring to live in the city, the house for sale in Niagara Falls that you kept as a rental property will rarely see any vacancy. Also, even if you plan to hold onto your Niagara Falls property for the long term, the growing popularity of the city among young professionals will drive up the property value of your investment immensely down the line.
6. Revitalisation Efforts
Niagara Falls is actively undergoing major revitalisation projects which are aimed at attracting new businesses, residents, and tourists to the city. Among the undergoing projects, a notable one is the new GO Train station. This is a $130 million project to construct a new GO Train station near Fallsview Boulevard.
Then, there is the New Niagara Region Public Health Facility that has recently opened in this city. This 21,500-square-foot health facility has amped up the healthcare services, making the city more attractive to residents and potentially boosting demand for Niagara Falls homes for sale.
Invest Wisely, Benefit Immensely
Investing in the Niagara Falls region offers real estate investors promising prospects. This is mostly because of the city’s thriving tourism, affordable property rates, and potential for further growth and development.
However, just like any other investment venture, you need to conduct thorough research and weigh the benefits and risks before putting your money in a house for sale in Niagara Falls. With careful consideration, investing in Niagara Falls can present lucrative opportunities for those seeking to capitalize on the city’s unique strengths.
