All Forum Posts by: Scott Innocente

Despite a Slowing Canadian Rental Market, Several long-term trends continue to favor real estate investors:

Affordability Challenges Driving Demand for Rentals

Housing affordability in Canada remains at historic lows, with many individuals unable to afford homeownership and turning to rental housing instead. RBC Economics has reported that housing affordability in Canada is the worst it has been in 30 years, exacerbated by high home prices and rising interest rates (RBC Economics, 2023).

Severe Housing Supply Shortage Canada faces a prolonged housing supply crisis, with estimates suggesting it could take over a decade to build enough homes to achieve affordability. According to the Canada Mortgage and Housing Corporation (CMHC), the country needs an additional 3.5 million homes by 2030 to restore housing affordability (CMHC, 2022).

Shifting Preferences Among Younger Generations 

Millennials and Gen Z show less interest in homeownership compared to previous generations. Instead, they prioritize flexibility, travel, and lifestyle experiences, with many opting for renting as a more practical choice. Studies indicate that 75% of Canadians aged 18-40 see renting as a long-term solution rather than a stepping stone to ownership (Angus Reid Institute, 2022).

Population Growth Driving Housing Demand 

Despite short-term fluctuations in immigration, Canada’s population is expected to grow significantly in the coming decades, potentially reaching 100 million by 2100. The Century Initiative, a non-profit organization, advocates for policies to achieve this milestone, highlighting the role of immigration in sustaining population growth and economic stability (Century Initiative, 2022).

BioSteel Expands to Windsor, Ontario with New Manufacturing Facility, Creating Local Jobs and Driving Innovation

Windsor, Ontario, is experiencing significant developments poised to impact its local real estate market:

Gordie Howe International Bridge

The construction of the Gordie Howe International Bridge is enhancing trade flow between Canada and the U.S., positioning Windsor as a critical logistics hub. This development is attracting commercial real estate investments, exemplified by the recent $20 million sale of a 50-acre industrial site near the bridge. CBRERENX

LG Energy Solution/Stellantis EV Battery Plant

The forthcoming $4.9-billion electric vehicle (EV) battery plant by LG Energy Solution and Stellantis is set to be the largest automotive investment in Canadian history. Slated for completion in 2025, this facility is expected to create approximately 2,500 jobs, stimulating demand for both residential and commercial properties as workers seek housing and services. CBREThe Conference Board of Canada

Population Growth

Windsor-Essex is experiencing a historic population increase, with a 1.62% rise in Q2 2024, bringing the total to 389,500 residents. This surge is intensifying demand in the housing market, particularly in the rental sector, as newcomers often rent before purchasing homes. Invest Windsor Essex

Real Estate Market Outlook

The Windsor-Essex County Association of Realtors anticipates a more stable real estate market, bolstered by economic growth and interest rate reductions. In December 2024, residential sales increased by 0.41%, and the average home price rose by 14.42% compared to the same period in 2023. CTV News WindsorWindsor Real Estate

These developments suggest a robust trajectory for Windsor's real estate market, with significant opportunities for investors and stakeholders.

For a more in-depth analysis of Windsor's real estate market trends and predictions, you might find the following video informative:

Major growth happening in Windsor over the past couple of years. The Windsor-Essex real estate market in 2024 experienced notable developments, including:

• Market Stability and Growth: The Windsor-Essex County Association of REALTORS® (WECAR™) reported a more stable market, driven by economic growth and interest rate reductions. The Bank of Canada's decision to lower its benchmark interest rate to 4.25% improved mortgage accessibility, encouraging market participation. Windsor Real Estate
• Population and Employment Increases: In Q2 2024, Windsor-Essex County's population rose by 1.62% to 389,500, and the labor force grew by 6.79% to 241,700, reflecting strong economic fundamentals. Windsor Real Estate
• Major Developments: Significant projects, such as the near completion of the Gordie Howe International Bridge and the new NextStar Energy EV battery plant, attracted new residents and stimulated housing demand. Windsor Real Estate
• Devonshire Mall Redevelopment: Plans were announced to demolish the former Sears building, with proposals to construct new facilities, including potential hotels, residences, or entertainment venues, aiming to make the mall a destination.

The 11th annual Manufacturing Day in Windsor offers over 1,000 high school students and job seekers a firsthand look at career opportunities in technology and the industrial sector. With tours of 23 local companies, participants will gain insight into key industries, such as jet engine repair, automotive manufacturing, and electronics. As Windsor’s largest economic sector, manufacturing employs 34,000 people, and over the past year, 505 manufacturers have advertised more than 4,500 job openings, showcasing the vast potential for apprenticeships and employment in the region. Founded in Windsor in 2013, Manufacturing Day has expanded significantly and now includes employment support agencies to help build a skilled local workforce.

Impact on the Local Real Estate Market: The addition of the new LG-Stellantis electric vehicle battery plant in Windsor is expected to further boost the local economy. This plant, part of a joint venture between LG Energy Solution and Stellantis, is a massive $5 billion project that will bring thousands of jobs to the area. With both the existing manufacturing base and this new high-tech facility, Windsor is becoming a key player in the future of automotive innovation. The influx of workers for the battery plant, combined with opportunities highlighted by Manufacturing Day, will likely drive increased demand for housing in the region. As more workers relocate to Windsor, particularly those in higher-paying tech and manufacturing roles, the local real estate market could see a surge in home sales and property values, further stimulating economic growth.

First-time homebuyers that Ottawa's new mortgage regulations could lead to higher housing prices. These changes would extend the time buyers have to pay off their mortgages and allow smaller down payments on homes valued at over $1 million. While the rules aim to make homeownership more accessible, buyers fear the changes may intensify demand, pushing prices even higher in an already competitive housing market. The Canadian 2025 spring market is set to pick up significantly with lower rates and improved affordability, especially in affordable cities like #windsor.

Huge news for East Windsor! A major development is set to transform the area with the new Costco coming soon. The new Costco store will be bigger than the current Walker Road location and offer more parking capacity. It’s expected the store will create over 200 new jobs. Combined with the massive battery plant project also underway in the east end, we can expect a significant boost to real estate values. These developments will not only create jobs but also make East Windsor an even more attractive place to live, work, and invest.

For homeowners and investors alike, this is a great opportunity to capitalize on the growth potential of this rapidly evolving neighborhood. Keep an eye on East Windsor investment opportunities.

#Windsor #EastWindsor #Costco #BatteryPlant #RealEstate #YQG #InvestmentOpportunity 

Yes, we can, but it also depends on your criteria. How many beds, baths, etc. as well as location. Any further information on this?

In a June 2022 report, CMHC estimated that Canada needs to build 5.8 million housing units to restore housing affordability by the end of 2030. This is 3.5 million units over and above the current pace of new home construction. #housingcrisis

https://www.cmhc-schl.gc.ca/en...

Windsor remains on of the most affordable cities in the country on an income-to-home-price ratio. Couple Windsor's affordability with 3 massive infrastructure projects (Gordie Howe Bridge, LG/Stellantis Battery Plant/Mega Hospital) and you have the recipe for massive appreciation.

Canada's rental housing shortage will quadruple to 120,000 units by 2026 without a significant boost in stock, Royal Bank of Canada said in a report Wednesday. Might be a good idea to start investing in rental properties.

1. Canada needs to build around 300,000 new rental units by 2026 to prevent a quadrupling of the rental housing gap.
2. The government needs to take immediate action to address the housing crisis and invest in building new rental properties.
3. The report suggests that addressing the housing crisis can have positive economic effects by creating jobs, boosting economic growth, and reducing poverty.