Are Smaller Towns Canada’s Next Real Estate Goldmine?
- Marinella Nicolosi
- Jun 22
- 3 min read
Updated: Aug 9
For decades, Canada’s major cities like Toronto, Vancouver, and Montreal dominated real estate headlines — with skyrocketing home prices, bidding wars, and rapid urban development. But a new narrative is emerging in 2025: a rural real estate revival that’s attracting homebuyers, real estate investors, and developers to small-town Canada.
Whether driven by affordability, remote work, or improved local infrastructure, smaller communities are no longer just lifestyle alternatives. They’re becoming strategic real estate investment markets across the country.
1. Affordability Is Driving the Shift to Small-Town Real Estate
In urban centres like Toronto and Vancouver, average home prices exceed $1 million, pricing out many first-time buyers and small-scale investors. Meanwhile, affordable homes in small Canadian towns are drawing serious attention.
What makes these markets appealing:
Detached homes available under $400,000 in provinces like New Brunswick, Alberta, and Ontario
Higher rental yields and cash-flow-positive investment properties
Less volatility during national housing downturns
Towns such as Cornwall, Ontario; Drumheller, Alberta; and Bathurst, New Brunswick are experiencing renewed buyer interest. Investors are seeking low-cost real estate markets in Canada with long-term upside potential.
2. Remote Work Has Unlocked Geographic Flexibility
With over 25 percent of Canadians working remotely in 2024 (Statistics Canada), the shift in work culture is fueling a trend toward rural home buying and long-distance real estate investing.
Examples of growing small towns:
Truro, Nova Scotia — a commuter town with upgraded infrastructure and internet access
Nelson, British Columbia — a popular choice for remote professionals and lifestyle investors
Cobourg, Ontario — a lakeside town with GO Transit access to the Greater Toronto Area
The ability to work remotely from affordable, livable communities is reshaping how and where Canadians choose to live and invest.
3. Infrastructure Upgrades Are Boosting Small-Town Appeal
Government and private sector investments are expanding infrastructure beyond major cities, making rural living more viable and attractive.
Key upgrades include:
Rural 5G networks and high-speed internet expansion in the Prairies and Ontario
GO Transit system growth and the new Ontario Line connecting suburban and rural towns
Investments in healthcare and post-secondary campuses creating new regional job hubs
These infrastructure improvements are not only enhancing livability but also supporting sustainable demand for housing in these areas. Savvy investors are following these investments to identify up-and-coming towns in Canada.
4. Investors Are Rethinking Strategy in 2025
In urban real estate markets, compressed cap rates and high mortgage costs are making cash flow increasingly difficult. As a result, real estate investors are shifting to smaller communities where the fundamentals still support growth.
Smaller markets often provide:
Rental yields in the 6 to 9 percent range
Lower competition from institutional investors
More growth potential in towns with increasing population and infrastructure investment
However, not all small towns are equally promising. Key indicators to watch include:
Economic diversification and job creation
Municipal planning, zoning, and housing policies
Demographic trends such as immigration, aging population, and regional in-migration
Promising regions include parts of Atlantic Canada, southern and northern Alberta, and smaller towns in southern Ontario. Many of these areas benefit from growing industries such as clean energy, agri-tech, and regional healthcare.
The Future of Real Estate in Canada: Small Towns, Big Opportunity
The shift toward rural living and investment is more than a temporary trend — it is a structural change driven by affordability pressures, lifestyle preferences, and infrastructure progress.
As more Canadians prioritize space over city skylines, smaller towns are offering real estate investors what big cities no longer can: affordability, growth potential, and long-term stability.
Should You Invest in Small-Town Real Estate?
If you’re priced out of major urban centres or seeking portfolio diversification, now is the time to explore real estate opportunities in Canada’s emerging small-town markets.
These communities may hold the kind of untapped investment potential that big cities offered ten or fifteen years ago — but with less risk, lower entry prices, and more room for growth.
Published: June 23, 2025 - 5 min read
By Private Lending Queen
Want to learn more about real estate investing in Canada? Stay updated by subscribing to our blog!
Imagine Financial Freedom—What's Your Next Move?
If you’re dreaming of building wealth through real estate—whether as a confident private lender or a capital-raising investor—our Real Estate Investing Masterclasses are your gateway.
Whether you want to be hands-on or make your money work for you and earn through passive income, we’ll give you the step-by-step clarity, tools, and confidence you need to invest with purpose and power.
Your journey to financial freedom starts here. Are you ready to begin?
Learn more about our masterclasses at www.privatelendingqueen.commasterclasses or book a Discovery Call with Marinella Nicolosi.
Comments