The 6 Most Profitable Canadian Cities for Condo Investors

Are condominiums profitable for Canadian real estate investors? Absolutely. But not all markets are created equal. Here are 6 of the most profitable Canadian cities for condo investors, and why you should take a closer look if you’re in the market to invest.

The data show that investors own a significant portion of Ontario’s new condos. This is true in both major urban centres, like Toronto and Vancouver, and elsewhere across the country. In fact, in Canada’s most populous province, investors owned more than half of all condominiums in 2020. In other provinces nationwide, investors are inclined to park their dollars and cents in condos.

In this type of housing market, it makes sense, too. According to the national rent report by Rentals.ca, the annual rent increase in September 2023 was nearly 10 per cent, while the average asking rent for a condo in the Canadian real estate market is north of $2,000.

So, from a rent-cash perspective, what are the most profitable Canadian cities for condo investors anyway? Here is a list of six.

#1 Calgary, Alberta

The Calgary real estate market maintains the widest difference between monthly mortgage payments and rent. Indeed, the average monthly mortgage payment for a condo in Calgary is approximately $1,355. In contrast, the average rental income from the same condo is close to $2,000, making this a profitable venture for condo investors.

At the same time, the Western city continues to have a strong economy, and demand for rental properties has maintained its upward trajectory. Therefore, Calgary is a safe bet that investors can make profits from investing in a condo. Moreover, experts also predict that prices in Calgary will continue to climb in the years to come. In the end, buying now should be a lucrative decision for most real estate investors, particularly as the cash-rich homebuyers from Toronto and Vancouver flood the city.

#2 Edmonton, Alberta

Once again, the difference in mortgage payments and rental income is also quite feasible in Edmonton, with an average rent of approximately $900 higher than the monthly mortgage payment. Edmonton is also one of the most affordable markets for investors interested in purchasing a condo for rental purposes, with an average price of only a little more than $192,000.

#3 Lethbridge, Alberta

Wait a minute. Another Albertan city?

According to the Lethbridge and District Association of REALTORS®, Lethbridge ranks sixth among the top places to invest in Alberta. Believe it or not, Lethbridge is a lucrative city for condo investors, with average rents higher than $800 over the monthly mortgage payments, allowing real estate investors to make a clean profit from their investment property. Purchasing a condo in Lethbridge is comparatively cheaper than other cities in Canada, with an average condo price of approximately $182,000.

#4 Winnipeg, Manitoba

Shifting gears to another city in Canada, Winnipeg is one of the most appealing municipalities for condo investors. The average monthly mortgage payment for a condo in Winnipeg is nearly $1,100. With an average monthly rental income of around $1,449, giving condo investors an approximate monthly profit of around $380 to $400. For most investors, Winnipeg offers low entry costs and good returns compared to other large cities in Canada.

In addition, Winnipeg has also seen an increase in population as several assembly companies, pharmaceuticals and manufacturing businesses have set up their operations in the area. This ensures a consistent demand for rental property and consistent profits for condo investors.

#5 Halifax, Nova Scotia

The average rent for a condo apartment in Halifax is slightly more than $2,000, while average monthly mortgage payments are slightly below $2,000. While the difference is not as high as in Calgary or Edmonton, the gap still allows investors to make a tepid profit from month to month.

Meanwhile, like Winnipeg, Halifax possesses low barriers to entry, particularly in relation to the costs of entering the Halifax real estate market. A mix of a stable stream of tenants and rental prices, some of the highest in this Nova Scotian city, provides a recipe for success for condo investors.

#6 Quebec City, Quebec

Suffice it to say Quebec City is an attractive location for real estate investors. It is a direct neighbour to the United States and enjoys a major waterway in the form of the St. Lawrence River. Quebec City’s rental market has shown a steady rise in recent years. The province is also known for its beautiful landscapes, rich culture, growing population, and stable economy.

After taking all these factors into account, it is safe to say that Quebec City is an attractive option for condo investors. Monthly mortgage payments in Quebec are much lower than the average rent for other properties in the city. At only $1,009 a month, this low dollar figure allows investors to make a clean profit of roughly $400 month over month.