Lower housing prices, and small town lifestyles can be the perfect match. Is it a good investment? It could be, if you build up a rental portfolio in a community with high rental demand and low inventory, or do your ROI (return on investment) homework. Local real estate agents, or the town business development department, can run the numbers for you.
Students, short-term contract workers, and singles or couples who can’t afford to own or prefer to rent are a steady source of investment income in small towns. Competition for investment properties can also be less intense, especially if you get a reputation as a trustworthy landlord.
Flipping fixer uppers can be financially rewarding, when interest rates are favourable and prices rising. average home prices in St. Marys, population 7,386 in 2021, have skyrocketed by 66.7% since 2020, and in Strathroy-Caradoc (pop. 23,574) by 50% to 80%. Cobourg’s 19,440 residents saw home prices rise 27.1% in a year. While home inventories are low, Bancroft (pop. 4,140) prices are on an escalator, up 40.6% since 2021.
The “but” in the equation is that local residents are digging in. Resale homes are at an all-time low, and you may have to build new construction to turn a profit. On the upside, demand for new build homes is going way up. Just like you, more and more Ontarians are moving to small towns.