A smart real estate investor is seeking a good investment that is based on three simple criteria:
- Price increases
- Public investment and Employment growth
Durham Region is the most affordable home market in the GTA that has the lowest vacancy rates. Why focus on vacancy? This is an all-encompassing indicator of housing supply and housing demand. When there is more demand for housing in an area than supplied there is low vacancy. This demand is created by an increased movement of renters migrating to the area due to increased jobs and opportunity. Notable statistics from CMHC’s Rental Market report in 2014:
April 2013 to April 2014 Ontario vacancy increased from 2.6 to 2.8 while Oshawa CMA (including Whitby and Clarington) stayed at 1.6. This same period saw rents in Ontario increase by 2.7 percent while in Oshawa CMA rents increased 4 percent.
What is the evidence of this strong interest for housing in Oshawa?
Rising prices: The Durham Region Association of Realtors stated that from June 2013 to June 2014, the average price of resale homes increased 9.5 percent to $395,548 while the Toronto Real Estate Board reported an increase of 7.4 for the same period to $568,943.
Want a detach home in the GTA?
Toronto $ 888,210
Durham (Ajax) $531,458 Can you beat that kind of affordability? Over 44,000 building permits will be issued in Oshawa which will be more than half of all building permits issues in Ontario.
Is it any wonder why GTA dwellers are moving out east? More jobs and local economic growth: The Conference Board of Canada found that in 2013 the Canadian economy to grew 1.8 percent while the Oshawa economy grew 2 percent.
To help with this movement of residents and jobs are increasing jobs and infrastructure projects:
- $1.1 Billion dollar development of the 407 ETR expansion by the Province of Ontario. Expansion from East-West through Brock in Pickering 22 kilometres east to North Oshawa at Harmony Road by 2015 plus two North-South connections to the Hwy 401 in Whitby and Clarington.
- The expansion of the UOIT campus and its partnership colleges, Durham College, Trent University, and Queens University partnership with Lakeridge Health with record-breaking enrolment and employing over 3,500 people.
- Increased manufacturing strength created by the bounce back of General Motors and the weakening Canadian dollar employing over 10,000 employees at GM headquarters.
- The Ontario Ministry of Finance headquartered in Oshawa employs over 2,700 people.
- Metrolinx has started expropriation of the old Knob Hill Farms lands in Oshawa for an expansion of its GO train line eastward. The GO Train allows downtown commuters to get to Union Station downtown Toronto in a little over an hour.
- A new Costco has been constructed near the proposed new GO Station in Oshawa with expanding big box retail rejuvenating this downtown Oshawa location.
- Major retail developers RIOCAN have positioned itself to build the next “Vaughan Mills” in North Oshawa on Simcoe near the next 407 exit.
- Ivanhoe-Cambridge has announced its $230 Million dollar redevelopment of the Oshawa centre to create 260,000 new square feet of retail with 60 new stores and 2 new anchor tenants.