Top 5 Ontario Cities for Multifamily Investing in 2025: An Expert Report

Navigating Ontario's Multifamily Investment Landscape in 2025

The multifamily investment landscape across Ontario is experiencing a significant transformation, shaped by a dynamic interplay of economic shifts, policy reforms, and demographic trends. Investors evaluating opportunities in 2025 are presented with a complex yet promising environment. A confluence of strategic zoning reforms, extensive transit expansions, robust job growth, and substantial population increases are acting as primary catalysts. While prevailing economic uncertainty and elevated operational costs continue to influence market sentiment, the anticipated moderation of inflation and projected interest rate reductions are expected to re-energize investor appetite, particularly throughout the latter half of 2025.  

A persistent under supply of housing remains a defining characteristic of the Ontario market, ensuring sustained demand for rental units even as population growth forecasts undergo some moderation. This structural imbalance between housing supply and demand underpins the resilience of the rental sector. Concurrently, progressive zoning changes implemented across key urban centers are simplifying the pathways for higher-density developments, thereby creating direct and tangible opportunities for investors seeking to expand their portfolios. This report delves into five strategic Ontario cities—Ottawa, Hamilton, Waterloo Region, Barrie & South Simcoe, and Durham Region—each presenting unique appeals for multifamily investment in the coming year.  

 

Ontario's Economic Pulse: A Macro View for Multifamily Investors

The broader economic environment in Ontario significantly influences the multifamily real estate sector. Understanding the interplay of interest rates, inflation, GDP growth, and population dynamics is crucial for informed investment decisions.

 

Interest Rate Outlook & Monetary Policy Impact

The Bank of Canada's monetary policy has a profound effect on real estate investment. As of June 2025, the Bank of Canada maintained its benchmark interest rate at 2.75%, following a series of cuts totaling 2.25 percentage points since mid-2024, with the rate settling at 2.75% in March 2025 after an initial 25 basis point reduction from 3.00%. Market participants, including traders in overnight swaps, anticipate further reductions, potentially bringing the policy rate down to 2.00% by the end of the year, while some economists project a rate of 2.25%.  

This trajectory of rate cuts directly translates to reduced borrowing costs for real estate investors. Lower financing expenses alleviate debt service pressures, making the acquisition of new properties and the refinancing of existing multifamily assets more financially viable. This reduction in the cost of capital is expected to invigorate investor interest and lead to increased transaction volumes, particularly as the year progresses. The market is transitioning from a period where high borrowing costs sidelined many potential investors to one where financing is more accessible, thereby encouraging re-entry into the market and a search for opportunities with improved financial leverage. 

Furthermore, a decline in financing costs often correlates with a decrease in the perceived risk associated with real estate investments. This dynamic can lead investors to accept lower yields for high-quality, well-located assets. For instance, Toronto's multifamily capitalization rates, which averaged 3.8–4.2% in 2024, demonstrate this trend, where even marginal rate declines could lead to further compression of yields for prime assets. This suggests that competition for top-tier properties in desirable locations may intensify, potentially driving down capitalization rates. The overall effect of lower interest rates is expected to foster a more competitive investment landscape for stable, income-generating multifamily properties.  

 

Inflation and GDP Growth Projections

Ontario's economic outlook for 2025 presents a nuanced picture, characterized by both positive trends and persistent challenges. The province's real Gross Domestic Product (GDP) is fore casted to grow moderately by 2.1% in 2025, building on an estimated 1.4% growth in 2024. However, a more conservative projection from the Ontario Ministry of Finance suggests a 0.8% real GDP growth for 2025. This divergence in forecasts highlights underlying uncertainties within the economy.  

Inflation is expected to continue its easing trend, projected to reach 1.9% in 2025, aligning closely with the Bank of Canada's 2% target. While this moderation in inflation is a positive indicator for long-term economic stability, consumer and business confidence remain fragile due to the lingering impact of high costs, housing affordability issues, and broader geopolitical tensions. This environment suggests that investors will likely adopt a strategy of cautious optimism, prioritizing stability and robust underlying market fundamentals over speculative ventures. This mixed economic outlook underscores the importance of granular market analysis, compelling investors to focus on cities and sub-markets that demonstrate resilience, diversified economies, and consistent demand drivers, rather than relying solely on broad provincial trends.  

Despite the anticipated moderation in overall inflation, the cumulative effect of past inflationary periods continues to strain household budgets, particularly concerning the cost of living and housing affordability. This ongoing pressure dampens consumer spending and reinforces the critical need for affordable housing options. For the multifamily sector, this translates into sustained, strong demand for more affordable rental housing, as homeownership remains largely inaccessible for a significant portion of the population. The projected increase in Ontario's unemployment rate to 7.5% in 2025, surpassing pre-pandemic levels due to population growth outpacing employment opportunities, further reinforces the demand for rental housing. This economic reality ensures that the rental market, especially in the affordable and mid-range segments, will continue to experience robust demand.  

 

Population Dynamics & Immigration Trends

Population growth, largely fueled by immigration, has been a primary driver of rental housing demand across Ontario. In 2024, the Greater Toronto Area (GTA) alone welcomed over 150,000 newcomers, intensifying the demand for purpose-built rentals. Ontario has experienced significant underlying population growth, with a 5.1% increase over the past two years. This demographic expansion, particularly Toronto's annual population growth of 3%, has consistently ensured that housing demand outpaces supply.  

However, recent policy changes and revised immigration goals are projected to lead to a slower pace of population growth in 2025, and an increase in emigration might reduce pressure on rental demand, particularly in previously expensive areas. While these shifts could lead to a moderation of rental demand in some overheated markets, the fundamental housing affordability crisis and existing pent-up demand for housing are expected to maintain healthy vacancy rates in the most accessible segments of the market. The effects of these policy adjustments are unlikely to be uniform across all regions, necessitating highly localized market analysis by investors. Cities or sub-markets that continue to attract residents due to strong job growth, relative affordability, or specific demographic pull factors will likely maintain robust rental demand.  

Even with a projected slowdown in population growth rates, Canada continues to face a structural housing under supply. The Canada Mortgage and Housing Corporation (CMHC) estimates that 5.8 million new homes are needed by 2030 to restore affordability nationwide. This deep-seated deficit implies that even if demand moderates slightly, it will still fundamentally outstrip the available supply, thereby sustaining upward pressure on rental markets, especially for affordable and mid-range units. The combination of historical housing under supply, continued (albeit slower) population growth, and persistent affordability barriers to homeownership will continue to result in sustained low vacancy rates in the rental market, particularly for more affordable segments.  

 

The Influence of Bill 23: Provincial Zoning Reforms and Development Charges

Ontario's More Homes Built Faster Act, 2022 (Bill 23) represents a significant provincial initiative aimed at streamlining the development process and increasing housing supply. A cornerstone of this legislation is the provision allowing the creation of up to three residential units "as-of-right" on most residential lots zoned for a single home, without requiring a municipal by-law amendment. These additional units are also exempt from development charges and parkland dedication fees, designed to reduce the overall cost of building new homes and spur construction. The legislation further includes provisions for reduced development charges for rental construction and exemptions for affordable housing and non-profit developments.  

While the intent of Bill 23 is to accelerate housing creation, its implementation carries significant financial implications for municipalities. Projections indicate substantial revenue losses for local governments; for example, Northumberland County anticipates losing $17.4 million, and Whitby could face a potential annual cost of $34 million. These revenue shortfalls could necessitate property tax increases or reductions in municipal services, as there is no explicit mechanism within Bill 23 to ensure that developers pass any cost savings onto consumers in the form of lower housing prices. The market, rather than the legislation, is expected to dictate home prices.  

The legislation also introduces changes to municipal planning responsibilities, transferring some land-use planning approvals from upper-tier municipalities to local cities and townships, effective January 1, 2025, in regions like Waterloo. This aims to save staff time and expedite approvals, but it also raises concerns about the protection of environmentally sensitive areas due to a diminished role for conservation authorities. Despite these challenges, Bill 23's focus on "as-of-right" zoning and reduced development charges for certain housing types creates a more direct pathway for investors to achieve higher density and potentially lower initial development costs, particularly for projects that align with the province's affordable housing objectives.  

 

City-Specific Multifamily Investment Analysis

 

1. Ottawa (National Capital Region)

Ottawa, Canada's capital, offers a compelling environment for multifamily investment, characterized by its political stability, robust economic growth, and progressive urban planning.

Population & Demographics

The city's population is projected to reach approximately 1.53 million by July 2024, a growth largely fueled by strong immigration, domestic migration, and consistent birth rates  The Ottawa-Gatineau metro area population stood at 1,466,000 in 2025. A significant portion of Ottawa's population, 75% of residents aged 25 to 64, hold post secondary qualifications, indicating a highly educated workforce. The average household income in Ottawa is $125,700 before taxes and $102,500 after taxes, with a median after-tax income for individuals at $37,136 and for couples with children at $115,637. Approximately 35% of dwellings in Ottawa are rented, reflecting a substantial tenant base.  

Job Growth & Economic Stability

Ottawa's job market is booming, particularly in the technology sector, which saw a 52% increase in tech talent from 2018 to 2023. The city boasts the highest concentration of tech talent among 50 North American markets, with tech jobs accounting for 13.3% of all employment. Key employers include the federal government, major tech companies like Shopify, IBM, and Microsoft, and prominent educational institutions such as Algonquin College and Carleton University. This diverse employment base, coupled with federal employment stability and expanding private-sector opportunities, contributes to a resilient and robust economy.  

Transit Developments

The Stage-2 expansion of Ottawa's O-Train system is a critical infrastructure development set to significantly enhance commuting efficiency. The East Extension is nearing completion, with trial running anticipated in the fall and public opening projected for Q4 2025. Construction of stations, guide way, track, and roadway works continues on the West Extension. This expansion includes extensions to Moodie Drive, Algonquin College, and Trim Road, as well as an Airport Rail Link from South Keys Station. The ambitious goal of this project is to bring approximately 70% of the city's population within five kilometers of rail transit, nearly doubling the reach from the Confederation Line's completion. These transit improvements are expected to increase connectivity, reduce commute times, and drive demand for housing along new transit corridors.  

Zoning Changes & Development Incentives

Ottawa's innovative N4 zoning, which replaces traditional R4 zoning, is designed to simplify the path to higher-density developments. This new zoning allows buildings of up to four storeys without unit limits, reducing regulatory hurdles for multifamily projects. The city is also eliminating minimum parking requirements, a choice-based approach that gives property owners and developers flexibility and encourages more efficient land use and walkable neighborhoods. The City of Ottawa is actively working to accelerate housing development, including affordable housing, through incentives and a streamlined disposal process for city-owned lands. The final draft of the new Zoning By-law is expected to be considered by Council in January 2026, following public consultations throughout 2025.  

Rental Market & Investment Trends

Ottawa's rental market is characterized by chronically low vacancy rates, with predictions for 2023 at 1.7%. CMHC reported a 2.6% vacancy rate and an average 2-bedroom rent of $1,880 in Fall 2024. A notable trend is that turnover units often command significantly higher rents, with a 21% premium compared to non-turnover units. In terms of sales, the market for smaller buildings (2-4 units) saw a 13.6% decrease in sales volume in May 2025, with an average price of $906,981. Conversely, sales of larger buildings (5 or more units) increased by 32.4%, with an average price of $2,086,900. The median days on market for homes in Ottawa was 17 days in May 2025, indicating a relatively quick sales cycle.  

Challenges & Risks

Despite its strengths, Ottawa's multifamily market faces challenges. These include inherent market sensitivities to economic fluctuations, the need for higher initial investments compared to single-family homes, and complexities associated with property management and tenant turnover. There is also heightened near-term uncertainty in the high-end segment of the market, with potential for increased vacancy rates among newly built, higher-rent units as new supply is delivered. Developers may temporarily pause new construction starts while the market adjusts to revised demand outlooks.  

Attractive Neighborhoods

For multifamily investment, areas like Vanier, Centretown, Hintonburg/Mechanicsville, and Westboro are particularly attractive. Vanier and Carlington are highlighted for their potential for positive cash flow, while Westboro and New Edinburgh offer strong prospects for long-term appreciation. Sandy Hill is a prime location for student rentals due to its proximity to the University of Ottawa. Properties near new transit lines are expected to see high tenant demand and minimal vacancies.

 

2. Hamilton (GTHA West Anchor)

Hamilton, strategically positioned within the Greater Toronto-Hamilton Area (GTHA), is rapidly evolving into a significant economic and transit hub, making it an increasingly attractive destination for multifamily investors.

Population & Demographics

Hamilton’s population is expected to reach approximately 842,000 residents by mid-2024, reflecting its growing appeal as a more affordable and spacious alternative to Toronto. The city's population in 2025 is estimated at 786,843, with immigrants constituting a substantial 26% of the population. There is a noticeable trend towards an aging population within the city. The average household income in Hamilton is $116,800 before taxes and $97,100 after taxes, indicating a solid economic base for residents.  

Job Growth & Economic Stability

Hamilton's economic profile has received a significant boost from recent biotech investments, notably Omnia Bio's state-of-the-art facility, which is set to create 500 specialized jobs . The city boasts a diverse economy encompassing manufacturing (particularly steel production), life sciences, education, goods movement, and information and communication technology (ICT). Hamilton Health Sciences represents the largest hospital-based workforce in Ontario, further underscoring the strength of the healthcare sector.  

Transit Developments

The much-anticipated 14 km Light Rail Transit (LRT) system is progressing into procurement stages, promising enhanced local connectivity. The Confederation GO Station is slated to open in 2025, a development expected to significantly improve regional connectivity. The expansion of GO Transit services has already begun to influence housing development and prices in Hamilton and the Niagara region. Studies suggest that real estate values for properties located within 500-800 meters of new rapid transit stations could increase by 10-20%. The province is investing up to $50 million in the construction of Confederation GO Station, with projections of 122,500 people and 63,900 jobs being within five kilometers of this station by 2041.  

Zoning Changes & Development Incentives

Hamilton has streamlined the development process with city-wide approval for triplexes and fourplexes without requiring zoning variances since early 2024. This change provides more opportunities for intensification in low-density residential areas. The city offers substantial incentives for multiplex projects, including fee rebates and forgivable loans. Specific programs include the Additional Dwelling Unit (ADU) and Multi-Plex Housing Incentive Program, which provides a 15-year forgivable loan of up to $25,000 per eligible unit, with a maximum of $150,000 per site, to support homeowners in building ADUs. The Commercial District Housing Opportunities Program offers financial assistance of $20,000 per dwelling unit, up to a maximum of $600,000 per property, for enhancing or developing dwelling units in commercial districts. Additionally, the Housing Accelerator Fund provides grants ($35,000-$50,000) and forgivable loans ($25,000 per eligible unit) for the creation of new affordable rental units. The ERASE Affordable Housing Grant Program also offers grants for remediating historical environmental contamination on brownfield sites for affordable housing projects.  

Rental Market & Investment Trends

Hamilton's rental market shows strong performance. The average 2-bedroom rent was $2,314, representing a 5.5% increase in Fall 2024, with a purpose-built rental vacancy rate of 1.6% and a condominium apartment vacancy rate of 0.8%. In 2025, the average 1-bedroom unit in Hamilton rents for around $1,895/month, while 2-bedroom units average $2,350–$2,500/month. However, the average selling price of a townhouse/multiplex in Hamilton decreased by 6.7% year-over-year to $681,500 in May 2025. The overall average selling price for a home in Hamilton was $783,100 in May 2025, a 9.8% decrease compared to a year ago. Despite price declines, the sales-to-new listings ratio of 39% in May 2025 indicates a buyer's market, with buyers having more selection and negotiating power.  

Challenges & Risks

Hamilton faces challenges related to housing affordability and the preservation of existing affordable units. Between 2011 and 2021, Hamilton lost over 15,000 rental units with monthly rents below $750, far outpacing the creation of new affordable units. To address this, the city adopted a renoviction by-law in 2024, aiming to protect tenants from displacement and preserve affordable rental units. Economic uncertainty and concerns about future interest rate cuts continue to contribute to buyer hesitation in the broader real estate market.  

Attractive Neighborhoods

Investors targeting opportunities near transit hubs and academic centers like McMaster University are well-positioned. Specific attractive neighborhoods include West Hamilton, Kirkendall, Hamilton East, Bartonville, Stoney Creek, and Ancaster. Other areas with strong investment potential include Durand, the Locke Street Area, Westdale (especially for student and academic communities), Corktown (for affordability and central location), Downtown Hamilton Core (due to revitalization and planned LRT), North-End / West Harbour (for waterfront redevelopment), and Beasley and James Street North (for their vibrant arts scene).  

 

3. Waterloo Region (Canada’s Silicon Valley North)

Waterloo Region continues to solidify its reputation as a leading technology and innovation hub, driven by its prestigious universities and robust startup ecosystem. This dynamic environment attracts a highly educated workforce, significantly enhancing its housing market potential for multifamily investors.

Population & Demographics

The region's population is approximately 700,000 residents as of 2024, with projections indicating a steady increase towards 1 million residents in the next 20 years. A significant portion of this growth is expected from immigration, with an estimated 84,037 new permanent residents projected between 2023 and 2030. Waterloo Region's population is, on average, younger than that of Ontario and Canada, partly due to its large student population and attraction for young families seeking a lower cost of living and high quality of life. Household incomes in Waterloo Region consistently rank among the highest in Ontario, with an average household income of $112,100 before taxes and $93,400 after taxes.  

Job Growth & Economic Stability

Waterloo Region's tech employment surged by 45.5% between 2018 and 2023, ranking it as the third-fastest-growing tech talent market in North America. The region is a premier technology and innovation hub, supported by high-quality research facilities and a robust startup ecosystem, including Communitech. Beyond tech, key sectors driving the local economy include Advanced Manufacturing, Aerospace, Automotive, and Food Processing. This diverse and dynamic job market attracts a highly skilled workforce, which in turn fuels housing demand.  

Transit Developments

The success of Stage-1 ION Light Rail has already spurred approximately $5 billion in new development along its corridor. The confirmation of Stage-2 to Cambridge promises even greater regional connectivity, linking Waterloo, Kitchener, and Cambridge. While construction for Stage 2 is not anticipated to commence earlier than 2028, the existing ION route has demonstrably increased property values and new construction activity within its central transit corridor. This long-term commitment to transit infrastructure enhances the region's appeal for sustained investment.  

Zoning Changes & Development Incentives

Waterloo Region has streamlined density increases with city-wide approval for four-unit zoning since early 2024, allowing developers and investors to efficiently meet rising housing demand. The region offers a variety of incentives to create affordable housing, including capital grants for new affordable and supportive housing projects, funding for secondary suites through the Ontario Renovates program, and property tax exemptions for participating affordable housing providers. Additionally, private developers creating units that meet provincial affordability thresholds are eligible for regional development charge grants, and non-profit developers of affordable housing are entirely exempt. CMHC seed funding programs can also cover soft costs for affordable housing projects, offering up to $150,000 in grants and potentially interest-free loans up to $350,000.  

Rental Market & Investment Trends

The rental market in Waterloo Region has demonstrated strong fundamentals. Rents were up 23.5% year-over-year to an average of $2,332 for 2-bedroom units at the end of 2022. While the vacancy rate rose by 90 basis points in Kitchener-Cambridge-Waterloo, this was partly attributed to significant additions of new rental supply. As of Fall 2024, the average 2-bedroom rent was $2,314, representing a 5.5% increase. Across Canada, average asking rents saw a 0.8% month-over-month increase in July 2024, hovering just above $2,200.  

Challenges & Risks

Despite its strengths, Waterloo Region's real estate market is tempered by economic uncertainty, including concerns about tariffs and job security, which have led potential buyers to hesitate. Home sales in May 2025 saw a 9.3% decrease compared to the same period last year, and the average sale price for all residential properties was $789,154, down 3.6% year-over-year. The condominium apartment market, in particular, shows high inventory with 8.5 months' supply, suggesting a buyer-favorable environment for this segment. The region also faces challenges in maintaining its existing affordable housing stock, as illustrated by a non-profit housing group facing a $40,000 repair bill for a damaged unit with limited financial support.  

Attractive Neighborhoods

Waterloo Region's strong tech employment base and streamlined zoning offer quick turnaround and strong rental demand, especially around transit corridors. Areas near tech jobs and universities are particularly appealing. The region's urban expansion areas and downtown revitalization projects are also highlighted as attractive for investment, offering a variety of housing options and appealing to first-time buyers and investors seeking more affordable alternatives.  

 

4. Barrie & South Simcoe (Northern GTA Gateway)

Barrie and the surrounding South Simcoe region present appealing opportunities for multifamily investors due to their relative affordability, quality of life, and strategic proximity to the Greater Toronto Area. This region is increasingly attractive to commuters seeking spacious homes and balanced lifestyles.

Population & Demographics

Barrie's population, currently at 164,200, is projected to grow by 65% by 2041, reflecting strong migration trends driven by affordability and regional development. The city's population was approximately 169,000 in 2024 and is expected to reach around 298,000 by 2051. Immigrants constitute 16.9% of Barrie's population, indicating a growing diversity. The median household income in Barrie was approximately $93,000 in 2020, with an average household income of $114,500 before taxes and $95,600 after taxes, positioning it as a middle-income community attracting young families and professionals.  

Job Growth & Economic Stability

The region's advanced manufacturing sector has recently added over 7,400 jobs, establishing Barrie as a significant economic contributor. Barrie's diversified economy also includes strong sectors such as education, healthcare, information technology, agribusiness, and tourism. This broad economic base contributes to the city's stability and growth, attracting a diverse workforce.  

Transit Developments

The ongoing GO Barrie Line electrification project, promising 15-minute, two-way service, is set to significantly enhance regional connectivity and attract more commuter residents. While Metro-linx has not announced specific completion dates beyond the original 2032 target, the progress of GO Transit upgrades and extensions has historically made access stations and nearby real estate more coveted, leading to increases in property values in close proximity to stations.  

Zoning Changes & Development Incentives

Barrie has implemented recent zoning amendments in 2024 that now permit four-plex developments city-wide, making multifamily investments more feasible and profitable. The city is actively developing a new Zoning By-law to align with its Official Plan, with Draft 3 released in September 2024 and ongoing public consultation. To incentivize housing creation, Barrie offers the "Per Door Grant Program," with up to $5 million in total funding available for the 2025 intake period. This grant provides flexible financial assistance for new affordable and rental housing units, available to both non-profit and for-profit developers. Other financial incentives include Development Charges (DC) Deferral Requests, the Tax Increment Equivalent Grant (TIEG) Program, and Exemption from Planning Application Fees. Simcoe County also supports the creation of secondary/garden suites through its Secondary Suites Program, offering a forgivable loan of up to $30,000.  

Rental Market & Investment Trends

Barrie's rental market is experiencing notable growth, with rental prices rising by approximately 8% year-over-year in 2025. As of June 2025, the average rent in Barrie was C$1,737/month, though it saw a slight decrease of 0.6% in the last year. The vacancy rate in Barrie was 2.7% in 2024. The real estate market experienced a strong start to 2025, with the average sale price climbing to $841,757 in January 2025, a 6.62% increase from January 2024. Condominium prices, in particular, have risen by 6% year-over-year, driven by increased interest from young professionals and down sizers seeking more affordable entry points.  

Challenges & Risks

Barrie's housing supply has not kept pace with demand, resulting in a seller's market. The city faces significant affordability pressures, particularly for low and moderate-income households, with rental rates rapidly rising and most options now exceeding $2,000 per month. The very low rental vacancy rate indicates limited choice and availability for renter households. The supply of ownership housing is also not meeting demand, especially for first-time home buyers, as average resale prices have risen 172% over the last decade while average incomes only increased by 34%. This lack of affordability in the ownership market is driving "would-be" purchasers to the already constrained rental market.  

Attractive Neighborhoods

Targeting properties near transit hubs like Allandale and Bradford GO stations can yield attractive returns due to increased rental demand and higher property values. Other attractive neighborhoods include Holly, South Shore, and Allandale for families, with Allandale also noted for its affordability. The East End, Mapleview, City Centre, South Shore, and North Shore offer various lifestyles and investment opportunities. Southeast Barrie and the Ardagh neighborhood are also highlighted for their appeal.  

 

5. Durham Region (Oshawa–Ajax–Whitby)

Durham Region, encompassing Oshawa, Ajax, and Whitby, presents excellent investment opportunities within close proximity to Toronto, characterized by its affordability, steady growth, and strong community planning.

Population & Demographics

Durham Region's population is expected to grow significantly, from 753,000 in 2023 to 896,000 by 2029, reflecting sustained demand for suburban living close to major urban centers. Immigrants comprise 28% of Durham's population as of 2021, with Ajax being the most chosen municipality for immigrant settlement within the region. The median household income in Durham was $107,000 in 2020, which is higher than the Ontario average, indicating a strong economic foundation for residents.  

Job Growth & Economic Stability

The revitalization of Oshawa’s GM truck plant, which is adding up to 2,500 jobs, serves as a major economic catalyst for the region. Durham Region's economy is diverse, with key sectors including advanced manufacturing (with a shift towards electric vehicles), technology and innovation, green energy, agriculture, tourism, and the gaming industry. The region's strategic location within the Greater Toronto Area (GTA) enhances its economic prospects by providing access to larger markets and urban employment opportunities.  

Transit Developments

The Bowmanville extension of the GO Lakeshore East line is a significant transit development that will improve regional transit, enhancing commuter appeal and property values . Targeted early works construction for this project is underway in 2025, with service improvements anticipated incrementally from 2026-2027. These enhancements will make commuting to Toronto easier and further integrate Durham Region into the broader GTA economic landscape.  

Zoning Changes & Development Incentives

Province-wide Bill 23 enables three units per property as-of-right, providing a clear pathway for investors to achieve greater density. Local bylaws are increasingly favoring four-unit developments, further supporting multifamily investment. Durham Region offers the "At Home Incentive Program" (AHIP) to support the development of affordable housing. This program provides direct funding support through forgivable capital loans and expedites planning approvals for projects that include a minimum of five affordable housing units. For the current round of applications, AHIP has $5.75 million in funding available, demonstrating the region's commitment to increasing affordable rental housing supply.  

Rental Market & Investment Trends

The average 2-bedroom rent in Durham Region was $1,993, reflecting a 3.6% increase in Fall 2024. Oshawa's vacancy rate was 3.7% in 2024. While overall average asking rents in Ontario decreased by 3.5% annually in March 2025 , Durham Region remains an active and resilient market within the GTA, with some areas showing strong price increases. For example, Oshawa's average sale price in April 2025 was $796,574, up 3.49%. The GTA housing market experienced a decrease in sales (down 13.3% YoY) and average selling prices (down 4% YoY) in May 2025, but new listings increased by 14% YoY, indicating more inventory and negotiating power for buyers.  

Challenges & Risks

Durham Region faces significant housing affordability challenges and a growing homelessness crisis. The number of individuals experiencing homelessness increased by 134% in 2024 compared to 2021. There is a growing waitlist for rent-geared-to-income (RGI) housing, with 10,785 low-income applicants at the end of 2024, due to low vacancy rates and limited deeply affordable options in the private rental market. Bill 23, while promoting housing supply, could lead to higher property taxes for residents and reduced municipal services, as it does not mandate developers to pass on savings to consumers.  

Attractive Neighborhoods

Durham Region offers affordable entry points, strategic locations near transit developments, and supportive zoning policies, positioning it as an attractive market for multifamily investors . Oshawa, Ajax, and Whitby are key municipalities within the region. Oshawa is particularly noted as a "recession-proof" area for investors due to its low vacancy levels, diverse economy (education, healthcare, government, OPG), and abundant infrastructure, including GO train access. Other attractive areas for real estate investment within Durham include Pickering, Brooklin, North Oshawa, Whitby Shores, Bowmanville, Courtice, Newcastle, Millbrook, Port Hope, and Cobourg.  

Strategic Positioning for Multifamily Investment in Ontario's Evolving Landscape

Ontario's multifamily investment landscape in 2025 is characterized by a dynamic interplay of economic forces, policy shifts, and demographic trends. The anticipated moderation of interest rates, coupled with easing inflation, is expected to improve financing conditions and rekindle investor interest, particularly in the latter half of the year. However, a nuanced economic outlook, marked by varying GDP growth projections and persistent affordability challenges, necessitates a cautious yet strategic approach.

The province's commitment to increasing housing supply through initiatives like Bill 23, which streamlines zoning for higher-density developments and offers development charge exemptions, creates direct opportunities for investors to contribute to and benefit from market growth. Despite these legislative efforts, a fundamental undersupply of housing persists across Ontario, ensuring continued robust demand for rental units, especially in the affordable and mid-range segments, even with projected moderation in population growth rates.

The five cities analyzed—Ottawa, Hamilton, Waterloo Region, Barrie & South Simcoe, and Durham Region—each present unique value propositions. Ottawa offers stability through its government and tech sectors, supported by significant transit expansion. Hamilton benefits from its strategic GTHA location, diverse economy, and proactive development incentives. Waterloo Region stands out as a tech innovation hub with a young, educated population and a successful rapid transit system. Barrie and South Simcoe provide affordability and quality of life, attracting commuters and benefiting from transit improvements. Durham Region offers affordable entry points, strong job growth, and strategic proximity to Toronto, bolstered by supportive housing initiatives.

For investors, success in this evolving market hinges on a localized and granular understanding of each city's specific dynamics. This includes assessing the interplay of population growth, job market resilience, the impact of transit infrastructure, and the nuances of local zoning and incentive programs. While opportunities for substantial long-term success are evident, a thorough due diligence process that accounts for both macro-economic shifts and micro-market specificities will be paramount. Focusing on properties that align with the growing demand for accessible and mid-range rental housing, particularly in areas benefiting from infrastructure development and supportive municipal policies, will position investors for optimal returns in Ontario's compelling multifamily sector in 2025.

 

How I Can Help You Invest in Ontario’s Multifamily Market

Whether you’re an experienced investor or just starting out, navigating Ontario’s evolving multifamily landscape requires more than just data — you need strategy, execution, and local insight.

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