Emerging Markets: Discovering Opportunities Beyond Major Cities

Canada’s real estate market is shifting, and savvy investors are moving beyond high-priced urban cores like Toronto and Vancouver. As home prices rise and cap rates compress in major metros, a new opportunity is emerging: secondary real estate markets in Canada.

These smaller cities and suburban hubs offer undervalued properties, high rental demand, and significant growth potential. In this article, we explore why these markets are gaining traction and highlight five cities where investors are finding strong returns in 2025.

Why Investors Are Targeting Secondary Markets in Canada

Affordable Real Estate Markets in Canada

With benchmark home prices exceeding $1 million in cities like Vancouver and Toronto, investors are turning to more affordable real estate markets in Canada. These include regional centers where entry prices are 30–60% lower, enabling better cash flow and stronger long-term rental income opportunities.

The Rise of Work-from-Anywhere

The normalization of remote work has changed where Canadians live. Many are relocating to secondary cities in Canada that offer a better quality of life and lower housing costs, fueling demand for rentals in these regions.

Tight Rental Housing Markets

Vacancy rates are below 2% in many secondary markets, making them ideal for income-focused investors. Cities like Halifax, Moncton, and London are experiencing double-digit rent increases and consistent tenant demand.

Government Support and Infrastructure Growth

Municipalities in secondary markets are encouraging investment through zoning reform, fast-track permitting, and infrastructure upgrades. These changes support rental housing development strategies such as infill construction and legal suite conversions.

Top 5 Secondary Real Estate Markets in Canada to Watch in 2025

1. Halifax, Nova Scotia

Halifax has emerged as a high-growth hub with strong economic fundamentals and a robust rental market. The city is benefiting from interprovincial migration and a surge in immigration.

Why Invest:

• Lower purchase prices than national averages

• Strong rental yields due to housing supply shortages

• A growing base of international students and federal employees

2. London, Ontario

With its proximity to Toronto and growing post-secondary population, London is one of the top immigration corridor cities outside the GTA.

Why Invest:

• Consistent rental income from Western University and Fanshawe College

• Population growth driven by affordability and new Canadians

• Ongoing development in tech and health sectors

3. Moncton, New Brunswick

Moncton is now one of the most affordable cities in Canada, with strong local job creation and a growing reputation among out-of-province investors.

Why Invest:

• Entry-level pricing under $300,000

• Rental demand from newcomers and retirees

• Provincial programs that support real estate development

4. Kelowna, British Columbia

Kelowna continues to attract investors thanks to its blend of lifestyle appeal and rental growth. Its economy is supported by tech, education, and tourism.

Why Invest:

• High demand for short-term furnished rentals

• Strong appreciation in multifamily and mid-market properties

• Zoning updates allow for increased density development opportunities

5. Saskatoon, Saskatchewan

Saskatoon is benefiting from demographic expansion, job creation, and investor interest in cash flow-positive properties.

Why Invest:

• One of the best cities for entry-level investment in 2025

• Demand driven by students, workers, and intra-provincial migration

• Attractive ROI due to low acquisition costs and rising rents

Why These Markets Matter

Secondary markets in Canada are no longer an alternative strategy—they're becoming the blueprint for smart investing in 2025. These regions provide the combination of:

• Lower entry prices

• Stable or growing rental demand

• Improved infrastructure

• Supportive local policies

For investors focused on long-term value creation, rental income, and market resilience, these emerging cities present a clear opportunity.

Published: April 7, 2025

By Private Lending Queen

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