Where Population Growth is Creating New Investment Opportunities

If you're looking for smarter, more reliable ways to generate passive income in the Canadian real estate market, you need to follow the people. Ontario, especially, has been experiencing spectacular population growth over the last few years, but the most compelling investment narratives are now playing out outside the Greater Toronto Area (GTA).

While the GTA remains a crucial economic hub, the sheer influx of new residents, driven primarily by international and non-permanent migration, is creating a ripple effect. This effect is pushing residents, both new and established, toward more affordable and rapidly expanding urban centres across the Greater Golden Horseshoe (GGH) and beyond. This demographic shift is where savvy investors today find the real investment opportunities

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The Great Ontario Population Surge (and the GTA Exodus)

Canada’s population growth has been a massive story, setting records over the past few years. From July 2023 to July 2024, Canada’s population grew by a staggering 3.0%, adding over 1.2 million people, with Ontario being a major destination (Statistics Canada, 2024). This unprecedented growth has put immense pressure on housing supply, and while the City of Toronto and Peel Region saw massive absolute increases in population, with Toronto adding 143,000 people in the year ending July 1, 2024 (Centre for Urban Research and Land Development, 2025), the market dynamics are shifting.

Here’s the key takeaway for investors: Intraprovincial migration is pushing residents out of the most expensive urban centres.

Statistics Canada data shows that from July 2023 to July 2024, the Toronto CMA recorded a net loss of over 69,000 people due to movement within the province. People are moving out of the core to seek more affordable housing and a better quality of life in secondary markets. This internal migration is the fuel driving incredible demand and creating prime investment opportunities in specific Ontario cities.

Hotspots Outside the Core: Where to Find Investment Opportunities

The smart investor understands that where people move, demand for housing, both rental and purchase, follows. The following areas outside of Toronto's immediate core have shown significant growth rates, making them attractive for developing an income-producing portfolio:

1. The Tri-Cities: Kitchener-Cambridge-Waterloo (K-C-W)

The K-C-W area has long been known as Canada's Technology Triangle, but its population boom is now drawing attention from real estate investors. The region saw a remarkable 4.9% increase in its Census Metropolitan Area (CMA) population in the year leading up to July 1, 2024, reflecting its growing appeal as a tech and education hub (Canadian Real Estate Wealth, 2025).

Why it's Hot: K-C-W’s strong, diversified economy, anchored by tech giants and two major universities (Waterloo and Wilfrid Laurier), creates a constant stream of high-quality renters. Demand for rental units, particularly for young professionals and students, remains exceptionally high. Investing here offers stability and significant long-term appreciation potential as the region matures.

2. Niagara Region

While often known for its wineries and tourism, the Niagara Region, including St. Catharines and Niagara Falls, is benefiting hugely from the GGH’s urban spread. The Niagara Region saw its population climb by 15,000 persons in the 12 months ending July 1, 2024 (Centre for Urban Research and Land Development, 2025). This movement is a direct result of people seeking better value just outside the high-cost areas of Hamilton and Toronto.

Why it's Hot: The region offers a more affordable entry point than the GTA, which translates into better initial cash flow potential. It maintains strong transportation links via the QEW, making it accessible for commuters, while its local appeal as a vibrant community ensures sustained rental demand.

3. Peterborough

Peterborough, located along the Trent-Severn Waterway, has emerged as a small-city surprise. It experienced a 4.5% growth rate in its CMA in the year leading up to July 1, 2024, putting it on par with major centres like Edmonton and Vancouver (Canadian Real Estate Wealth, 2025).

Why it's Hot: Peterborough's combination of local amenities, a post-secondary presence (Trent University), and relatively lower property prices than the GTA makes it an ideal spot for first-time real estate investors seeking strong yields and low vacancy rates driven by rapid demographic expansion.

Leveraging Growth: The Regalway Homes Advantage

Understanding where population growth is occurring is only the first step; the second is knowing how to capitalize on it. Successful real estate investment in these high-growth regions requires strategic insight, not just guesswork.

Canada’s current housing market is complex. The Canada Mortgage and Housing Corporation (CMHC) has noted that housing starts must nearly double, reaching 430,000 to 480,000 units per year until 2035, just to meet projected demand (Statistics Canada, 2024). This fundamental supply shortage, coupled with explosive population growth, means well-executed real estate investments are poised for success.

At Regalway Homes, our expertise goes beyond simply identifying homes; we specialize in Real Estate Investing & Development. We guide our clients to capitalize on these demographic trends through smart strategies such as:

• Identifying High-Yield Properties: Focusing on areas with the best ratio of rent-to-purchase price to maximize your passive income cash flow.

• Strategic Development: Recognizing opportunities for minor developments, such as creating legal secondary dwelling units (SDUs) in single-family homes, to double rental income and better serve the new influx of residents.

• Local Market Expertise: Our team’s deep knowledge of the Greater Toronto Area and surrounding Golden Horseshoe ensures you’re investing in areas poised for long-term appreciation and sustained rental demand.

  
  

We believe anyone can succeed in real estate investment with the right guidance. Whether you’re new to the game or looking to expand your portfolio, our team is here to support you in navigating Ontario’s fast-moving markets.

Final Thoughts: The Time to Act is Now

The story of Canadian real estate is currently defined by an intense demand-supply imbalance, made only more acute by record population increases. While this poses challenges for housing affordability, it presents unparalleled investment opportunities for those seeking to build lasting wealth and passive income. The key is to look beyond the crowded, expensive GTA core and invest strategically in secondary markets experiencing the fastest proportional growth.

The shifting demographics in Ontario are not just a temporary trend; they are a fundamental realignment of the provincial housing market. By partnering with experts who understand both investment and development, you can position yourself to benefit from this monumental growth.

Discover how you can start investing smartly today. Visit our website or schedule a consultation:  https://www.regalwayhomes.com/book-online

Source URLs (AP Format)

• Canadian Real Estate Wealth. (2025). Canada's Cities On The Rise. Retrieved from https://www.canadianrealestatemagazine.ca/

• Centre for Urban Research and Land Development. (2025). Spectacular Population Growth Continued in the City of Toronto and Peel Region in 2024. Retrieved from https://www.torontomu.ca/centre-urban-research-land-development/publications/reports/

• Statistics Canada. (2024). Annual Demographic Estimates: Canada, Provinces and Territories, 2024. Retrieved from https://www.statcan.gc.ca/en/start