Guelph Housing Market - What Factors Affect the Value of a Property?

Often referred to as the Royal City, Guelph, Ontario, is part of the Greater Golden Horseshoe (GGH), the urban area located around the west end of Lake Ontario with Toronto at its center.

Neatly situated between larger urban centres like Waterloo, Hamilton, and Toronto, commuting to and from Guelph is easy and convenient. Despite its location, house prices in Guelph are considerably more affordable than its larger neighbours.

Let’s look at some of Guelph's unique features to fully understand the factors contributing to successful investment in this lucrative housing market.

Economic Factors

Economic factors, like a growing economy and a flourishing job market, keep Guelph near the top of the list of great places to live.

Guelph's Healthy Job Market in Manufacturing and Tech Industries

Guelph is part of what Ontario calls the Innovation Corridor, in which five Census Metropolitan Areas (CMAs) generate 25% of Canada’s Gross Domestic Product (GDP) and 66.6% of Ontario’s.

Thanks to well-established manufacturing and tech companies such as:

• Canadian Solar Inc
• Linamar Corporation
• Hammond Power Solutions
• Intrigue
• SearchEngineOp Website Design & SEO
• Connection Incorporated

Linamar Corporation, for instance, manufactures major components for the medical technology field, the automotive industry, and more. Linamar operates over 22 manufacturing plants in Guelph. The utilities and manufacturing industries supply jobs for over 20% of the full-time workforce in this glorious city, making it one of the top-five job providers.

Strong Local Economy

People search the question, is Guelph a good place to live? Guelph is a great place to live for many reasons, but one of the best reasons is its low unemployment rate. With sectors like tech, education, and manufacturing supplying the bulk of jobs, Guelph had the lowest unemployment rate in all of Canada in 2019.

Strong employment levels benefit the economy and residents, making Guelph ideal for potential buyers and rental investors. It’s unlikely that tenants will lose their jobs, but if they do, there’s a good chance of finding a new one quickly. When it comes to rent prices in Guelph the monthly payments are higher-than-average, but the average household income is also substantial and sits at around $100,175, making the higher rent affordable.

Supply and Demand

The demand for housing in Guelph continues to increase, as the migration continues. The Guelph real estate market is on a steady rise and will continue through the current national economic slowdown. The Royal City has been one of the fastest-growing Ontario cities throughout the last decade and isn’t showing any signs of slowing down.

With continuous growth and expansion, Guelph has seen a steady supply of new residential listings for rentals and housing — making it perfect for anyone serious about investing in real estate.

Location

Guelph is far enough away from the larger cities to reduce the crime rate significantly but close enough to conveniently commute to work or for pleasure.

Connectivity and Transportation

Guelph is ideally situated, having access to several major highways, such as:

• Highway 7 to Waterloo, Kitchener, and Acton
• Highway 24 to Cambridge
• Highway 401 to Toronto
• Highway 6 to Owen Sound and Hamilton

Both residents and investors love having direct, easy access to and from these key cities.

Healthy Municipal Transit System

More than 20,000 residents ride the municipal transit system daily, with over 70 busses navigating 28 routes. Additionally, GO Transit buses take students to and from Guelph Central Station and the University of Guelph.

There’s talk of investing in a new bus storage facility and buying additional electric buses to expand its fleet, reduce the carbon footprint, and environmental impact and increase efficiency. 

A University City with a Massive Student Population

Over 30,000 students attend University of Guelph (U of G) yearly; over 1750 are international attendees from approximately 130 countries. This makes Guelph’s real estate market perfect for student rentals. Only 13% of the 30,000 students live on campus, which leaves 26,100 students needing a place to live.

The expectation is a steady student population growth due to the acclaim and popularity of the U of G and the city's continued growth.

Guelph Tourism

Guelph has a robust local tourism industry built on three main attractions:

• Cultural festivals: People from all over the world visit Guelph to take in some of the many flourishing arts and cultural festivals, such as:
• The Hillside Festival
• The Guelph Film Festival
• The Two Rivers Festival
• The Guelph Pride Festival
• The Guelph Festival of Moving Media
• Guelph and District Multicultural Festival
• Local sports teams: Guelph is proud of its OHL hockey team, The Guelph Storm, who entertain fans from all around southern Ontario during hockey season, and Guelph’s IBL baseball team, The Royals, keeps fans entertained throughout the summer.
• Historical sites: Can you imagine how many historical sites the first planned city in Canada might have? Full of Victorian-era architecture, from churches like the Basilica of Our Lady Immaculate located near the downtown neighbourhoods to the McCrae House and the Guelph Civic Museum, Guelph loves its culture.

Rental Property Age and Condition

According to Statistics Canada, the construction of approximately 45% of single/semi housing units began in 1960 or earlier. 25% of the rental townhouses popped up between 1971 and 1980, and another 20% from 1991 to 2000. The construction of rental apartments was spread evenly over 30 years between 1960 and 1990.

Regarding maintenance and repairs, only 10% of rental dwellings need major repairs, 26% require minor repairs, and most need regular maintenance. All these factors help real estate investors and property owners keep housing costs manageable.

Interest Rates

The interest rate is up to fight inflation, but the housing prices in Guelph are down from their peak in 2020, making it a great time for housing investment.

Ready to Make Guelph Your Home?

Whether you’re planning on making Guelph your home or thinking about investing in rental property, Andra Arnold & Associates can help you get there.

Our real estate agents have extensive knowledge of the Guelph housing market. Along with our dedication and passion for client-focused outcomes, we provide a seamless home-buying experience second to none.

Contact us