Interest rates were low for a long time in Canada. And when COVID hit in 2020, rates were at record lows, making borrowing cheap.
Then, rates went up repeatedly in a short amount of time.
As mentioned above, interest rates have been on a bit of a roller coaster.
Canada had low rates for years, making money cheap, and people grew accustomed to it.
Then, in 2022 rates went up repeatedly in a short amount of time.
This significantly increased carrying costs for those who’d racked up debt.
Many unprepared and untrained new “investors” found themselves in hot water.
Some investors were forced to sell and many started to say investing in real estate no longer worked.
Side note: Savvy investors realized that with easily manageable adjustments to their investing strategies, you could still buy cash flowing properties in cities around Ontario.
Rates did drop in 2024, and it could bring people back to the market.
And if you want to take advantage of the best places to invest in real estate in Ontario in 2025, you need to know the fundamentals and use the right strategies, more on that in a bit.
Nice homes (in desirable areas) typically draw in better-quality tenants and can demand better rent.
Think clean, thoughtfully cared-for properties. These don’t need to be high-end luxury homes, but they should offer more than just the bare minimum—homes with upgraded finishes and features that make life easier and more comfortable for tenants.
The result? Fewer headaches and issues for you over the long run.
One of the first factors for success is picking the right location.
Ontario is a great place to invest in real estate. There are plenty of opportunities, and there are investor groups that can assist you throughout your journey.
There’s no “one” right place, but there are a few main criteria we use when determining if a city/neighbourhood is a good investment opportunity.
Why try to create demand when you can invest in an area where demand is already booming?
Before jumping into a market, take a moment to check out the population trends in the neighbourhood. Are more people moving in than out? Even better, is the population growing faster than the provincial average? You can find this info on the Stats Canada website. It’s a quick search that can give you a solid idea of whether a neighbourhood is worth your time.
Demand also depends on the type of property you’re investing in. If student rentals are your thing, being close to the main campus and transit hubs is key—those features will keep your tenant pool steady.
Starter homes are another safe bet. While the definition of a “starter home” might vary by area, they’re always in demand, especially with first-time buyers and young families.
Now, let’s talk about Southern Ontario. Demand for housing here is off the charts, and it’s not slowing down anytime soon.
Yes, Canada implemented new immigration policies to slow Canada's growth over the next few years, but housing is still laughably behind our population's needs, especially across Southern Ontario
Income is a big indicator of the prosperity of a neighbourhood. Generally, higher household incomes mean strong job diversity in the area, a solid local economy, and a greater “staying power.”
You want to make your investments as simple as possible, and an area with multiple sources of employment creates a healthy and active real estate market. It provides a good base of tenants, first-time buyers, and “move-up” buyers.
This is another thing you can figure out by looking at Stats Canada. Many real estate apps also offer quick demographic insights into the local region.
In addition to higher income, new job growth is another great indicator of a good area to buy. New factories, schools, hospitals, large commercial businesses, etc. They can bring thousands of jobs to an area which can snowball growth and demand for good homes from the people who are going to fill these new roles. On the flip side, when you see major employers closing and moving out, it’s maybe not the best time to invest in that neighbourhood.
The Greater Toronto Area (GTA) remains one of the top destinations for real estate investment in 2025, thanks to its unmatched economic power, cultural diversity, and global appeal. Here’s why the GTA can’t be left off of our list of the best places to invest in real estate in 2025 in Ontario:
The GTA is Canada’s economic powerhouse, contributing significantly to the national GDP. Key economic drivers include:
The GTA remains the primary destination for immigrants to Canada, contributing to its rapidly growing population. Unique factors driving growth include:
Toronto, the GTA’s core, is a world-class city with an international reputation for its quality of life, stability, and inclusivity. Features include:
The GTA consistently experiences one of the tightest rental markets in Canada, driven by:
The GTA offers a wide range of real estate options to fit different investment strategies, including:
The GTA is investing billions in infrastructure to accommodate its growing population and economic activity. Highlights include:
While property values in the GTA are among the highest in Canada, the region has demonstrated consistent long-term price appreciation. Contributing factors include:
The GTA has emerged as a global tech hub, with Toronto ranking as one of North America’s fastest-growing technology markets. This growth attracts:
Toronto scored 4th in North America in the 2024 Tech Talent Report released by CBRE, only behind the San Francisco Bay Area, Seattle, and New York. Toronto had the highest number of tech jobs added since 2018. Plus Toronto is leading the country in AI-specialty tech jobs. The city is seeing healthy, desirable growth, and that's why it's on our list of best places to invest in real estate in Ontario in 2025.
The GTA offers housing and lifestyle options for every demographic, including:
The GTA’s real estate market is adapting to future needs, with opportunities in:
The Greater Toronto Area combines economic strength, population growth, cultural appeal, and future-focused infrastructure to remain a top-tier real estate investment market in 2025. Whether targeting condos, multi-family homes, or suburban developments, investors in the GTA can count on steady demand, rising rents, and long-term appreciation in one of the world’s most dynamic regions.
Someone recently asked us, "is Hamilton still one of the best places to invest in real estate in Ontario?" Afterall, it's far from the hidden gem it once was. In fact, it became "the" place to invest for many investors. Prices went up, so is it still worth looking at? The short answer is, yes.
Hamilton has been a very popular location for investors for around 20 years, for good reason Let's take a look:
Hamilton has undergone a dramatic transformation in the last 15 years, transitioning from a steel town to a thriving urban center. This revitalization has led to:
This gentrification makes it ideal for investors looking to capitalize on long-term appreciation.
Hamilton’s real estate market is benefiting from spillover demand from the Greater Toronto Area (GTA) as people seek more affordable living options within commuting distance. Key drivers include:
Hamilton is establishing itself as a tech and innovation hub, with initiatives like:
This economic diversification draws a highly skilled workforce, creating opportunities for rental and residential properties catering to professionals.
Hamilton offers a wide range of investment opportunities, from historic homes in established neighbourhoods to modern condos and purpose-built rental buildings. Investors can target:
Hamilton’s industrial roots remain strong, with growth in logistics, warehousing, and advanced manufacturing. The Hamilton Port Authority and close proximity to major transportation routes make it a vital economic hub, which supports:
Hamilton’s rich cultural scene and burgeoning food scene have earned it the nickname “The Brooklyn of the North.” Highlights include:
Hamilton’s mix of affordability and rising demand creates a sweet spot for real estate investors. Features of the market include:
The Niagara Region offers a compelling case for real estate investment in Ontario in 2025 due to several key factors that align with investor goals. Here's why:
Niagara’s proximity to major urban centers like Toronto, Hamilton, and Buffalo makes it a hub for commuters, businesses, and tourists. The region benefits from:
While home prices across Ontario have risen, Niagara remains more affordable than the Greater Toronto Area. This affordability attracts:
There is a bit of a trade-off with the lower home prices. Rents in Niagara are generally less than in cities closer to Toronto. That said, many investors are able to make small adjustments to their properties (converting the home to add a secondary suite, garden suite, or converting the home into a student rental if in the right location) to realize positive monthly cash flow. Plus, St. Catharines' Housing Acceleration Plan has changed, making it easier than ever for homeowners to apply for grants when adding units. Now, you may be eligible for up to a $40,000 grant for adding interior units (think basement suite) or up to $80,000 for exterior units (garden suites).
Niagara’s economy is diversifying beyond its traditional tourism and wine industries to include manufacturing, logistics, and technology. Key developments include:
The Niagara Region is experiencing significant population growth due to:
Niagara’s globally recognized attractions, such as Niagara Falls and its wine country, make it a hotspot for tourism, creating opportunities for short-term rental investments like Airbnb (many parts of the region have short-term rental bylaws and require permits, so make sure you do your due diligence).
A growing population, combined with limited rental supply, ensures strong demand. Key trends include:
Whether it's in St. Catharines, Niagara Falls, Welland, Port Colborne, or somewhere else, the Niagara Region is a fantastic place to live and invest in 2025!
The big talk with investors in London is around student housing.
Student rentals have had massive demand in the last couple of years at Western University.
We’ve seen several luxury units renting for over $1,000 a room, even as high as $1,250/room. While this is on the high end, London is still seeing record-high student rental prices.
Recently, there's been concern about the demand for these rentals due to the Canadian government's new international student regulations.
However, if you look at Western University's enrolment growth, the strong majority comes from domestic students. Even if all of the international students disappear, which they won't, there's still more than enough demand from new Canadian students.
Here are some of the other reasons to consider London:
London boasts a diverse economy supported by health care, education, manufacturing, and tech sectors. Key developments include:
London also has a growing, and impressive healthcare presence. In fact, London Health Science Centre as its largest employer and St. Joseph’s Health Care Centre is its third.
London’s strategic location in Southwestern Ontario makes it a transportation hub, with easy access to the GTA and Windsor-Detroit border via Highway 401 (halfway (200km) between Toronto and Detroit).
Western University and Fanshawe College not only attract students but also fuel innovation and research, attracting companies and skilled professionals. This dynamic supports:
London has a few programs in place to encourage home development, and adding additional units. This includes interest-free loans of up to $20,000 for constructing a new ADU and smaller loans for housing repairs.
Barrie, Ontario, presents a highly attractive real estate investment opportunity in 2025, driven by its growing appeal as a commuter town, a booming local economy, and its strategic location near major metropolitan areas. Here's why Barrie stands out for real estate investors:
Barrie offers the best of both worlds—small-town charm with easy access to the big city. Situated just an hour’s drive north of Toronto, it has become a top choice for people looking to escape the high costs of the GTA. Key factors include:
Barrie has experienced significant population growth over the past decade and continues to be one of the fastest-growing cities in Ontario. This is driven by:
Barrie’s economy is not only driven by its role as a commuter town but is also fueled by key industries, including:
Barrie is known for its natural beauty and recreational offerings, including waterfront access on Lake Simcoe, skiing at nearby hills, and hiking trails. These outdoor amenities are attractive to:
Barrie’s infrastructure investments are helping to future-proof the city and support continued growth. Key developments include:
Barrie is becoming an increasingly popular tourist destination, thanks to its waterfront, ski resorts, and proximity to cottage country. This growing tourism base offers strong potential for short-term rental investors, including:
Barrie’s growing population, combined with limited housing supply, leads to low vacancy rates and steady demand for rental properties. Investors can capitalize on:
Compared to larger urban centers, Barrie remains relatively affordable, but property values are increasing, creating substantial appreciation potential. Investors can benefit from:
The city of Barrie is focused on promoting growth and development through strategic planning, such as:
Barrie was ahead of the curve in embracing Accessory Dwelling Units (ADU) for residential properties—a smart move with a population boom on the horizon. Homeowners can now transform a single-family home into a multi-unit property by adding a basement suite and a detached ADU in the backyard. Essentially, one home can become three units—pretty impressive! This approach isn’t just about accommodating growth; it’s a game-changer for investors. Adding more rental units to a single property means increased cash flow and a stronger portfolio—an opportunity too good to pass up.
If so, there's a lot of potential to find good, cash-flowing properties right here in Ontario. While these are some of our best places to invest in real estate in Ontario in 2025, you can be successful in many communities across Southern Ontario. If you’d like to learn more about investing in real estate, you can sign up for an upcoming 60-minute live training class hosted on Zoom. We’ll cover investing strategies that are successfully being used in Ontario right now. Plus there will be a questions and answers period at the end of the class.
Make 2025 your best year for investing in your future.
Are you a new investor, or looking to improve your investing strategy? Check out our 10 crucial real estate investing tips for driven investors.
Want to check our list from last year? Check out the Best Places to Invest In Real Estate In Ontario 2024 here.
