How to Start Investing in Canada’s Secondary Housing Markets

As major cities like Toronto and Vancouver continue to price out many investors, Canada’s secondary housing markets are gaining traction—and for good reason. These emerging cities offer affordable real estate opportunities, strong rental demand, and excellent long-term growth.

Whether you're a beginner or experienced investor, real estate investing in smaller Canadian cities could be your path to portfolio growth and cash flow.

Step 1: Research Market Trends

Canada’s secondary housing markets—like Kelowna, Moncton, Halifax, and London—are drawing investor interest for their affordability and growth potential.

Key factors to research:

• Population growth: Halifax has seen over 2% annual growth due to interprovincial migration (StatsCan).

• Job growth & economic diversification: London, ON is expanding in healthcare and tech.

• Affordability: RBC’s 2024 Housing Affordability Report ranks cities like Saint John and Saskatoon among Canada’s most affordable.

Use trusted Canadian sources like:

• Statistics Canada

• CMHC Housing Market Insights

• RBC Economics

Step 2: Analyze Rental Demand

Rental income drives cash flow. To assess the strength of a Canadian rental property market, consider:

• Vacancy rates: Peterborough and Guelph have <2% vacancy (CMHC 2024).

• Rising rent trends: Kelowna has seen >5% YoY rent increases.

• Property types in demand: In Barrie, detached homes outperform condos. In university towns, student housing is strong.

Data sources:

• CMHC Rental Market Reports

• Regional real estate boards

• Rent reports from Rentals.ca and Zumper

Step 3: Build Your Local Team

You can’t invest successfully from a distance without a strong local real estate team. Surround yourself with:

• Investment-savvy realtors

• Experienced property managers

• Local REI groups

Their boots-on-the-ground insight helps you avoid overpaying and understand tenant expectations.

Step 4: Focus on Future Growth

Look for indicators of urban expansion in Canada’s secondary markets:

• Infrastructure investment: GO Transit to Niagara, Calgary/Edmonton LRTs

• Planned developments: Lethbridge, AB and Kingston, ON are investing in education, industry, and housing

• Migration patterns: Remote workers are relocating to Kamloops, Chilliwack, and Charlottetown for affordability and lifestyle

Check:

• Canada Infrastructure Bank

• Municipal growth plans

• Provincial housing and transport departments

Step 5: Secure the Right Financing

Financing can vary outside of urban cores—but lenders are increasingly open to secondary market mortgages:

• Big Five Banks (RBC, TD, Scotiabank, BMO, CIBC)

• Credit Unions like Vancity (BC) and Servus (AB)

• CMHC-insured mortgages for reduced down payments

• Private lending options for BRRRR or short-term strategies

Pro tip: Work with a mortgage broker who specializes in investment properties across Canada.

Why Secondary Markets in Canada Make Sense

Secondary markets aren’t just affordable—they’re strategic.

✅ Lower purchase prices

✅ Higher cap rates

✅ Growing rental demand

✅ Less investor competition

According to a 2024 RE/MAX Canada report, Sudbury, Prince George, and Charlottetown are emerging as "quiet winners" in real estate due to their affordability and livability.

Investing in Canada’s secondary real estate markets isn’t about chasing cheap deals. It’s about identifying undervalued cities with strong fundamentals, job growth, and population influx. When combined with good financing and a solid team, these cities can outperform big-name markets on cash flow and appreciation.

Published: May 3, 2025

By Private Lending Queen

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