Top Canadian Cities for Multi-Family Investment in 2024
As a student of real estate investing, it's crucial to stay updated on market trends, particularly when it comes to multi-family dwellings. The multi-family real estate sector continues to be a resilient and profitable investment opportunity in Canada, even amidst challenges like rising interest rates and a housing shortage. In this post, we'll explore the top Canadian cities to invest in for 2024 based on key performance indicators (KPIs) such as Cap Rate, Cash Flow per Unit, Net Operating Income (NOI), Price per Unit, and Gross Potential Margin (GPM).
1. Edmonton, Alberta
Edmonton continues to dominate the multi-family investment landscape in 2024. With Cap Rates ranging between 5.5% to 6.5%, this city offers one of the highest returns in Canada. Price per Unit remains relatively low, making it easier for investors to achieve a strong Cash Flow. The NOI is bolstered by affordable property management costs, while the GPM remains high due to increasing rental demand driven by population growth and a lower cost of living compared to other major cities.
Why Edmonton? As a student investor, Edmonton provides a perfect mix of affordability and returns. The market allows for excellent leverage and cash flow, crucial elements for long-term investment success.
2. Winnipeg, Manitoba
Winnipeg offers a stable and lucrative market for multi-family investors. With Cap Rates around 5-6%, the city provides a healthy balance between returns and risk. Price per Unit is affordable, which translates into high GPM and strong Cash Flow per Unit. The local rental market remains strong due to a growing population and affordable living.
Why Winnipeg? This city is ideal for those seeking stability and growth without the steep property prices of larger markets like Toronto or Vancouver. It’s a solid entry point for new investors.
3. Saskatoon, Saskatchewan
Saskatoon boasts some of the highest Cap Rates in the country, exceeding 6% in many areas. The Price per Unit is low, making it attractive for investors with limited capital. GPM is very high, driven by affordable acquisition costs and a growing rental market. The NOI is also strong, making this a prime choice for those looking to maximize returns on a budget.
Why Saskatoon? For students new to real estate, Saskatoon offers a low barrier to entry while delivering high returns. This market is particularly attractive if you're focused on maximizing your cash flow.
4. Hamilton, Ontario
Hamilton continues to shine as a lucrative Greater Toronto Area (GTA) market. Cap Rates are slightly lower at 4-5%, but NOI remains strong due to rising rents and a growing population. The Price per Unit is higher than in western cities, but still more affordable than in Toronto. This city benefits from spillover demand as more renters move out of Toronto in search of cheaper housing
Why Hamilton? If you’re looking to invest in a growing market near a major metropolitan area, Hamilton provides a balanced opportunity for cash flow and property appreciation.
5. Montreal, Quebec
Montreal remains a key market for multi-family investing, with Cap Rates around 4-5% and a strong NOI thanks to a high demand for rental properties. However, Price per Unit is increasing, slightly reducing GPM compared to other cities. Nonetheless, Montreal’s vibrant economy and strong population growth continue to drive rental demand.
Why Montreal? This is a good market for investors who are looking for stability in a large, diverse urban center. While cash flow may be lower compared to Edmonton or Winnipeg, the long-term appreciation potential is solid.
6. Calgary, Alberta
Calgary offers a mix of high Cap Rates (around 5.5%) and growing rental demand. Price per Unit is affordable, making it easier to generate high GPM and good Cash Flow. The city is experiencing a resurgence in population growth, which is driving rental demand and ensuring long-term profitability.
Why Calgary? For students interested in investing in a growing market, Calgary offers a combination of affordability and solid returns, making it a reliable option for multi-family properties.
7. Halifax, Nova Scotia
Halifax’s strong rental demand is pushing Cap Rates to 5-6% and boosting NOI. Although Price per Unit is rising, it’s still more affordable than many other eastern Canadian cities. The city’s growing population and economy provide a solid foundation for multi-family investments
Why Halifax? As a student investor, Halifax offers a smaller, but fast-growing market where rental demand remains strong. This city presents a good mix of affordability and growth potential.
Key Takeaways for Real Estate Students
As you explore multi-family real estate investment opportunities in Canada, it's important to consider not only the Cap Rates and Cash Flow, but also broader economic factors such as population growth, housing policies, and market trends. For 2024, cities like Edmonton, Winnipeg, and Saskatoon stand out for their high returns and affordability, making them ideal for new investors. Larger markets like Montreal and Hamilton offer more stability and long-term appreciation, though with slightly lower initial cash flow potential.
Understanding how these KPIs affect your investment will lead you to success. Start small, invest wisely, and always keep an eye on market trends to stay ahead of the curve.
