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Cities You Need To Watch Out For As a New Investor

London Market

Good Investment Opportunity & Strong Rental Market


This is thanks to multiple driving factors, the major one being that new construction is down a massive 81.7% compared to the prior period. This equated to only 33 properties under construction in the city for residential purposes, down from 180!

Source: CoStar


This is an important statistic long term as the demand continues to rise for housing in London. This will only continue to impact the forecasted increase in rental rates throughout the city. Vacancy rates have trended downward in recent years to the current rate of 1%, down from 1.5% in the prior period. This is forecasted to drop again slightly before levelling off and staying consistently low for the following few years, at least until 2027.

Source: CoStar


On top of historically low vacancy rates, London is seeing record high rental rates with an increase of 4.9% over the prior period. Bachelor units are seeing the largest increase in demand and price per square foot as opposed to the larger units. The average asking rate per square foot is currently at $1.53 with bachelors yielding roughly $2.22 per square foot and 3 bedrooms hovering just over $1.21.

Source: CoStar


With units under construction at its lowest point since 2013 we see signs of continued opportunity and a lower supply of residential units for sale and rent, therefore rental rates will remain strong and on the increase for the foreseeable future. Cap rates remain steady at 4.1%. Prior period being the 12 months prior to December 5th 2022.


Source: CoStar


St. Catharines Market

Strong Residential Buildings Under Construction


St. Catharines currently shows strong in the department concerning residential buildings under construction, at an increase of 77.4% versus the previous period. This is an increase of 177 from 229 to 406. These construction numbers have remained very strong since 2018.

Source: CoStar


Where St. Catharines shows similarities to other markets lies in the likes of cap rate, which has also dropped and currently sits at 3.9% with the forecast showing it to remain low until 2028 and perhaps beyond.

Source: CoStar


Source: CoStar


National vacancy rates have been declining and St Catharines has shown a 0.1% increase over the prior period. Vacancy rate is sitting at 1.2% for the city and is forecasted to spike in the next 12-18 months before after a short time around the 2.5% (forecasted) rate.


Market rent growth will show a drop after its spike in 2022 while Market asking rent per unit is forecasted to continue to climb after a minor dip this year.

Source: CoStar

Source: CoStar

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