PROVINCIAL PROFILES
SOUTHWESTERN ONTARIO
SOUTHWESTERN ONTARIO LEADS THE WAY WITH MOST NEW APARTMENT CONSTRUCTION IN CANADA
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conomically, southwestern Ontario benefits from strong transportation connections to both the GTA and the United States market. Growth in the high tech sector and in manufacturing is contributing to rapid population growth and a strong economy. Over and above this, centres in southwestern Ontario have been leading the way in terms of new apartment construction, both in terms of numbers, and in terms of return on investment. London in particular has seen rapid and sustained rental apartment growth, with over forty new buildings added to the local apartment universe over the past decade. Whereas other regions highlight the promise and the need for new apartment construction, centres like London show the benefits of making such investments. London’s success can be attributed to a number of developers who are vertically integrated and have built continuously for the past twenty years. These developers are land owners, experienced builders, and strong property managers who have taken the longterm view in developing their holdings. As a result London, with a population of under 500,000, has seen more new apartment construction in the past decade than the Greater Toronto Area, with a population ten times higher. London is not the only success story of southwestern Ontario. Significant investments by major universities in the region has produced a significant influx of new student-oriented housing, which have sold for some of the highest prices per square foot in Canada (see our article on student housing). Waterloo Region, for example, is a particular bright spot, since two major universities and a polytechnical institute have created one of the hottest markets for high end student housing in Canada.
WHEREAS OTHER REGIONS HIGHLIGHT THE PROMISE AND THE NEED FOR NEW APARTMENT CONSTRUCTION, CENTRES LIKE LONDON SHOW THE BENEFITS OF MAKING SUCH INVESTMENTS.
Similarly, Brantford has used LONDON, WITH investments by Wilfred Laurier university A POPULATION OF and associated student housing to reverse UNDER 500,000, HAS the deterioration of its downtown core. SEEN MORE NEW Significant student housing has also been CONSTRUCTION IN built in London. Other centres which THE PAST DECADE have seen new construction include THAN THE GREATER Woodstock (see below) and Sarnia, whose TORONTO AREA. new construction has come in at the high end of its marketplace. In terms of future growth, Waterloo Region is still building new construction and planning further developments. The city of Guelph benefits from the presence of a major university and good connections to the GTA, and should see more developments in the future. Windsor also has a university and is seeing millions of dollars in new investment with a new border crossing, so its market is turning around. Southwestern Ontario centres like London lead the nation in building and sustaining new apartment stock. Their example is one for other centres to emulate, particularly those with decades of repressed demand.
WOODSTOCK: SMALL CITY, BIG INVESTMENTS The city of Woodstock is small by Ontario standards, with a population of 35,480 and an apartment universe of 2,391. However, this city has seen significant investment in new apartment construction in the past five years, adding as much as a third to its total apartment universe: since 2000 seven new apartment buildings have been constructed, adding approximately 735 rental units to Woodstock’s universe. Woodstock’s apartment market has seen vacancy rates rise due to the 2008 recession, but the downturn in the market wasn’t reflected in average rents, which increased from $679 in 2009 to $881 in 2013. This reflects the impact of the new rental stock which has been priced at the upper end of the rental market.
“ROCK is the first name we think of for consulting, when we consider new
apartment construction. They are a trusted and valued company for us. ROCK provides critical information that is carefully researched and thoroughly studied, so we can be sure of our investments.
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Anne Marchildon, Vice President of Sales & Marketing, Andrin Homes, The Kerbel Group CITY Southwestern Ontario Waterloo (City) Kitchener Cambridge London (City) Sarnia Woodstock Brantford
UNIVERSE 117,674 5,135 17,990 4,763 38,912 5,426 2,391 4,657
NEW % POP'N Median After-‐Tax UNEMPLOYMENT UNITS GROWTH Units Per Household Average (Est) % NEW 2011 Pop'n SINCE 2006 EMPLOYED RATE 2010 RATE 2011 100 Ppl Income Vacancies Rents 13,165 11.19% 2,618,200 2.7% 4.49 3.8% $781 2,029 39.51% 121,700 24.9% 71,980 7.7% 6.7% 4.22 $66,893 3.4% $941 2,200 12.23% 223,400 9.2% 132,131 7.7% 6.7% 8.05 $57,279 2.5% $840 567 11.90% 130,000 8.0% 76,889 7.7% 6.7% 3.66 $58,180 2.4% $847 6,760 17.37% 380,000 7.8% 243,000 8.5% 9.0% 10.24 $57,269 4.0% $852 590 10.87% 91,600 3.2% 59,990 10.3% 10.3% 5.92 $57,554 7.1% $741 964 40.32% 39,200 10.5% 17,880 8.5% 8.8% 6.10 $55,561 1.8% $881 32 0.69% 139,100 11.6% 70,000 8.8% 8.1% 3.35 $54,852 3.5% $800
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