Hamilton, Ont., realized a 65 per cent rise in housing starts for June, leading the province despite the continuing construction boom in so many other regions.
“June was fantastic!” says Trevor Daly, principal broker of Dominion Lending Centres Capital Solutions in Hamilton. “We have a lot of people coming from Toronto to Hamilton and the Niagara region. They come here because they can still get what they want in a house, but for a couple of $100,000 less.”
Investors are no less bullish on that market, just a 45-minute drive from Canada's largest city, although their interest has traditionally centred on Hamilton's existing housing stock and some of the most solid rental demand in the province.
The uptick in multi-family construction -- chiefly condominiums -- is expected to deepen demand across the board as other developers look to enter the market.
A resulting boom could challenge investor returns if the price point of new construction encourages some rents to enter the market.
Still, investors have largely catered to the lower end of the market, which has seen little increase in vacancy rates.
That's something unlikely to change despite a spike in condo rentals.
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