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Why Niagara Falls Is a Good Place to Invest in Real Estate

Niagara Falls, the iconic group of waterfalls found along the US-Canada border, is shared by its two namesake cities divided by the majestic Niagara River. One city falls within New York State on the United States side of the border while the other is part of the province of Ontario on the Canadian side.

Over the years, the city of Niagara Falls in Ontario has remained a laidback community, with a natural beauty that has been excellently preserved through economic progress and urbanization. Beyond the frenzy of tourists who regularly flock to the area, Niagara Falls, ON is also a thriving community with a strong economy and robust real estate market.

If you’re looking for your next real estate investment or are venturing into the market for the first time, explore the many reasons why you should put your money on Niagara Falls, ON.

AN OVERVIEW OF THE NIAGARA FALLS, ON REAL ESTATE MARKET

Niagara Falls is located in Southern Ontario on the western banks of the Niagara River, and is part of the St. Catharines-Niagara Metropolitan Area. From the city, you can view Horseshoe Falls, the largest and most popular of the three falls that make up the famous Niagara waterfalls.

Niagara Falls is part of the Niagara Region, which makes up the southern end of the Golden Horseshoe – a super region where about 20% of Canada’s population live. The Golden Horseshoe also encompasses Toronto and the Peel Region, which have a combined population of approximately 4.5 million.

The city of Niagara Falls has a population of around 94,400 (as of 2021). Much of the northern part of the city is made up of residential areas but the southern portion boasts an expanse of mostly agricultural land.

The Niagara Region has consistently maintained a stable real estate market over the years, but it saw unprecedented gains at the height of the pandemic. With the exodus of people from crowded urban areas into suburban communities with plenty of open space, Niagara Falls marked a staggering surge in real estate sales.

In 2021, the Housing Price Index (HPI) in Niagara Falls was $703,600, up around 57.6% from 2020. In 2022, the HPI fell to $617,100, a decline of around 14% from the previous year but still a significant 38.2% increase from 2020. Bidding wars were the norm from 2021 to 2022, with homes for sale staying on the market for only around 16 to 22 days.

Since the start of 2023, the market has been showing signs of a slowdown – a trend that has been observed throughout most North American markets. As the buying frenzy that characterized the pandemic appears to have ebbed, the Niagara Falls market has been normalizing, resulting in conditions that are substantially more buyer-friendly than it had been in the past two years.

As of April, 2023, Niagara Falls registered an HPI of $649,600, a decrease of around 20% from the same period in the previous year. The average days on market are also longer at 28 days compared to last year’s 11 days. However, compared to 2020, the April, 2023 HPI is still higher by around 45.5%.

REASONS TO INVEST IN NIAGARA FALLS REAL ESTATE

As the market today is shaping to be more favorable to buyers, it is now the perfect time to invest in Niagara Falls real estate. Not only have homes here demonstrated appreciating values over the years, developments in and around the area signal more progress for the community, which in turn can further increase the demand for local real estate.

Moreover, the city has intrinsic qualities that make it a highly desirable location for both primary homes and secondary properties, regardless of the market’s condition.

Here are the top reasons why you should consider buying a home in Niagara Falls, ON, whether for your personal use or as an addition to your investment portfolio.

IDEAL LOCATION

As a gateway to the dynamic Niagara Region, Niagara Falls offers great access to major economic and tourism centers in the area, including St. Catharines, Grimsby, Welland, Fort Erie, and Niagara-on-the-Lake. Toronto is only around a 1.5 hour drive away and Mississauga is just over an hour’s drive away.

Niagara Falls’ proximity to the US border also makes it an important regional hub for economic activity and tourism. From the city, you have two options to cross the border – via the Rainbow Bridge which will take you to Niagara Falls, NY and via Peace Bridge which connects to Buffalo, NY. Numerous visitors take these routes every day, along with Canadian and American residents who travel to either country for work or leisure.

AFFORDABLE REAL ESTATE

In the last nine years, home prices in the Niagara Region have increased by around 300%. But despite the tremendous gains in Niagara Falls home prices in 2021 and 2022, real estate in the city – and throughout the Niagara region – is still more affordable compared to other major metropolitan areas.

For example, in the Greater Toronto Area, the average home selling price as of April, 2023 was $1.153 million. This is about 40% higher than the average selling price in Niagara Falls of $693,000. In the Hamilton-Burlington area, the average selling price as of April, 2023 was $806,809, approximately 16.4% higher than Niagara Falls.

There are also a variety of property types to choose from, allowing buyers and investors to find the home that best suits their budgets and preferences. You’ll find charming single family homes in tranquil residential neighborhoods, spacious condos, and multifamily homes where you can live in one unit and rent out the rest. There is also a host of vacant land that’s primed for development or for building a home or rental property from the ground up.

STRONG ECONOMY AND JOB MARKET

Each year, over $100 billion dollars in trade flow between the US and Canada via the Niagara trade corridors. The area is also a designated Foreign Trade Zone Point where businesses enjoy government support, making it an attractive hub for companies of all sizes. Moreover, prior to the closure of the borders due to the pandemic, tourism in the Niagara region has been a $2 billion industry.

As of February, 2023, the unemployment rate in the Niagara Region was 4.3%, lower than Ontario’s 5.1% and Canada’s 5%. In addition to export and related industries in the Niagara trade corridors, the top employers in the Niagara Region are in hospitality and tourism, manufacturing, healthcare, and construction. The local, regional, and national governments are actively assisting job seekers through portals like The Niagara Falls Employment Help Centre and the Government of Canada Job Bank.

Despite the presence of large corporations, Niagara’s business scene is dominated by small enterprises with only one to nine employees. This highlights the support the community gives to local businesses and the opportunities it offers to small entrepreneurs.

The strong economy regularly attracts new residents to Niagara Falls. From 2016 to 2021 alone, the population increased by 7.2%. This fuels the demand for real estate in the area, which in turn drives home prices up. This means a real estate investment in the city has strong potential to give you good returns when it comes time to sell.

BEST OF BOTH WORLDS

Beyond the location, economy, and employment opportunities, people are drawn to Niagara Falls for the amazing lifestyle it offers. This was especially spotlighted by the influx of migrants during the pandemic. People looking to escape congested urban communities chose to move to Niagara Falls for its combination of green open spaces, convenient modern amenities, and laidback way of life.

Here’s a snapshot of what you can expect from living in Niagara Falls:

GREAT POTENTIAL FOR RENTAL INVESTMENTS

As an area frequented by tourists, Niagara Falls offers great profit potential for short term rental property investments. According to the Tourism Industry Association of Canada, Niagara welcomes around 12 million visitors a year , and with all the exciting attractions and activities the region has to offer, many stay for more than just a view of the falls. The city supports the tourism industry by providing infrastructure that makes it easy and convenient for tourists to get around, as well as encourages them to stay longer and explore more.

Long term rental properties also pose good profit potential in Niagara Falls. Approximately 28.3% of the city’s households are renter occupied, and as more people move to the city, the demand for affordable housing is expected to increase, enhancing the desirability of rental properties.

Rental property investors may also look into providing student housing. There are two universities close to Niagara Falls: Brock University in St. Catharines, and Niagara College, which has a campus in Welland and in Niagara-on-the-Lake. All three campuses are within a 7 to 30 minutes’ drive from Niagara Falls, making the city a convenient housing location for students.

Another advantage investors can get in Niagara Falls is the wide range of properties to choose from, including condos, apartments, single family homes, and multi family homes. With these options, you can find an investment property that best matches your goals, budgets, and preferences.

EDUCATIONAL OPPORTUNITIES

The presence of top rated and high quality schools in an area always gives investors an edge as families with children will typically look for homes with easy access to good educational opportunities. Niagara Falls ticks this crucial box as it is served by three boards of education comprising dozens of elementary and secondary schools that offer instruction in English, French, or French immersion. These are:

Niagara Falls’ proximity to Brock University and Niagara College also helps stimulate the city’s economy and adds to its desirability to families and students pursuing higher education.

NEW DEVELOPMENTS

Niagara Falls is continuously evolving, with both the public and private sectors undertaking new developments that can further enhance the quality of life in the city and facilitate business activities.

In 2019, housing starts increased by 77%, ushering in the addition of new housing units to serve the growing population. In addition, new infrastructure projects are underway or in the pipeline, including the following:

GET EXPERT GUIDANCE IN YOUR NIAGARA FALLS REAL ESTATE INVESTMENT

Vibrant Niagara Falls offers excellent opportunities for astute real estate investors, but to succeed in such a dynamic market, it’s important to work with local experts who know the area inside and out. We at The Golfi Team provide that kind of expertise.

Led by Niagara Falls native Rob Golfi, we are the #1 real estate team in Hamilton, Halton, and Niagara in terms of sales volume, achieving sales of over $450 million in just one year. We are also ranked #5 among all brokerages in Canada and #7 among RE/MAX brokerages worldwide. We take pride in our high number of return customers as we commit to ensure every investment is expertly positioned in the market.

Let our track record speak for itself! Learn more about us and what we can do to maximize your return on investment. Call us today at 1.800.288.9184 or 1.905.575.7700. You may also send us an email or leave us a message here to get started.