Best Places to Invest in Real Estate (2026)
Investing in real estate looks very different heading into 2026 than it has in previous years. Higher borrowing costs, tighter mortgage qualification rules, and slower price growth have reshaped what makes a property a good investment. The days of buying anything anywhere and relying on home prices to appreciate are gone.
Today, successful investors focus on property fundamentals: rental demand, employment stability, population growth, and whether the numbers make sense with today’s mortgage rates. Whether you’re eyeing additional cash flow, long-term appreciation, or short-term rental potential, here’s a look at some of the best places to invest in Canadian real estate in 2026 and why they’re worth your attention.
Key Takeaways
- Define your investment goals to identify the right property and location for your investment.
- Market demand can significantly impact investment potential.
- Affordable markets offer more opportunities for price appreciation.
What to Look for When Investing in Real Estate in Canada
A few things can make or break your investment when evaluating real estate opportunities in Canada. Location remains the golden rule, but it’s not just about being in a big city. Look for areas with strong population growth, economic development, and infrastructure projects.
Cities that attract students or remote workers tend to have higher rental demand and long-term appreciation potential. Research local vacancy rates, average rent prices, and job market trends to ensure the area supports your investment goals, cash flow, appreciation, or both.
Additionally, consider local bylaws, zoning regulations, and landlord-tenant laws, as these can vary widely across provinces and municipalities. For example, some cities ban or restrict short-term rentals, such as Airbnb, while others support secondary suites and multi-family developments.
Identifying the Purpose of Investing in Real Estate
Before you invest in real estate, it’s essential to determine your purpose. Your purpose will directly influence the type of property you should purchase and the markets you target.
Are you investing t in the property to live in and generate monthly cash flow? Are you aiming to generate passive income from a rental property? Is your long-term goal appreciation, where you hold onto a property to sell for a profit down the road?
Some investors may want to focus solely on diversifying their portfolios and use real estate for tax advantages. Others may invest in real estate to generate income in retirement or build generational wealth. Understanding your investment goals can help you assess your risk tolerance and time horizon.
Defining your investment objectives from the start can help guide the type of property you choose, and financing is required. It can help you to develop an exit strategy that aligns with your broader financial objectives.
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Top Places to Invest in Real Estate in Canada
Each province offers a unique opportunity, depending on your investment goals. While some cities are ideal for generating steady cash flow, others show strong potential for long-term appreciation. Here are some cities in Canada that real estate investors should keep on their radar this year.
1. Calgary, Alberta
Calgary remains a hot spot for investors thanks to its affordable housing and rising interprovincial migration. Home prices are higher than they were 2 years ago; however, with continued population inflows from Ontario and BC, Calgary still offers one of the best price-to-rent ratios among major Canadian cities.
Population: 1,569,000
Average Home Price: $553,900
Average Monthly Rent: $1,875
2. Edmonton, Alberta
Edmonton has experienced robust economic growth while having an affordable housing market. The city’s economy is diversifying into technology, healthcare, and renewable energy sectors. This diversification has led to a surge in population growth as many interprovincial migrants come to the city to take advantage of a lower cost of living.
Population: 1,190,000
Average Home Price: $408,600
Average Monthly Rent: $1,615
3. Montréal, Québec
Montreal has lower real estate prices than major Canadian cities such as Toronto and Vancouver. With easy access to transportation hubs and home to major universities like McGill, Université de Montréal, Université de Laval, Concordia, and UQAM, housing in the area is in constant demand.
Population: 1,945,000
Average Home Price: $573,800
Average Monthly Rent: $1,953
4. Windsor, Ontario
Windsor has seen strong demand thanks to its relative affordability and proximity to the US border. This city is a major manufacturing hub, and many tourists pass through because of itsmajor border crossing. Its proximity to the border supports a cross-border workforce with residents who live in Canada and work in the US.
Population: 266,309
Average Home Price: $580,200
Average Monthly Rent: $1,749
5. Halifax, Nova Scotia
Halifax has seen property appreciation over the past few years as interprovincial migration to lower-cost-of-living areas picked up. Although the market has cooled, Halifax remains an area attracting buyers, and with few homes on the market, competition is increasing.
Population: 502,753
Average Home Price: $553,100
Average Monthly Rent: $2,252
6. Saskatoon, Saskatchewan
Saskatoon’s local economy is tied to natural resources, agriculture and education. The area is a key economic hub for the province. While Saskatoon has seen property appreciation over the past few years, property prices remain affordable. Saskatoon continues to offer value that larger markets no longer provide.
Population: 308,626
Average Home Price: $421,000
Average Monthly Rent: $1,614
7. Moncton, New Brunswick
Moncton has some of Canada’s lowest average home prices and has a growing demand for rental housing. The real estate market in Moncton is growing steadily, allowing investors to capitalize on property values that continue to lag behind those in other markets.
Population: 97,523
Average Home Price: $381,300
Average Monthly Rent: $1,300
8. Kitchener-Waterloo, Ontario
Kitchener-Waterloo earns its spot as a smaller Ontario market with real economic potential. Tech, education, and advanced manufacturing continue to support above-average household incomes. Rental demand remains strong, driven by students, young professionals, and households priced out of Toronto and the GTA.
Population: 706,000
Average Home Price: $642,600
Average Monthly Rent: $2,099
9. London, Ontario
London remains one of Ontario’s more stable markets. The city benefits from healthcare, education, and regional manufacturing employment, which supports consistent rental demand. A steady student population and limited rental supply keep rental vacancies low. Real estate prices have cooled in recent years while rental demand remains steady.
Population: 488,640
Average Home Price: $559,900
Average Monthly Rent: $1,914
10. Regina, Saskatchewan
Regina stands out for its low barrier to entry for its real estate market. Home prices remain among the lowest of any provincial capital, while rental demand remains high. The local economy is supported by agriculture, oil and gas, and mining industries. While price appreciation may be slower here, rental supply is limited, and vacancies remain low.
Population: 255,395
Average Home Price: $329,300
Average Monthly Rent: $1,497
Frequently Asked Questions (FAQ) About Best Places for Real Estate Investing
Is real estate still a good investment in Canada in 2026?
Real estate can still be a good investment in Canada. Higher mortgage rates and stricter qualification rules mean returns are now driven primarily by rental demand rather than rapid real estate appreciation. Most markets are seeing prices decline, so if you are ready to invest, financially comfortable, and able to manage any ongoing economic uncertainty, now could be a good time to secure a home or investment property.
What factors should I consider when choosing a location for real estate investment in Canada?
When choosing a location for real estate investment, look at areas with strong population growth, facilities for young people and economic development. Research local vacancy rates and average rental prices, and consider any bylaws, zoning regulations, and restrictions.
How does interprovincial migration affect real estate?
Interprovincial migration can significantly affect real estate investment opportunities by increasing housing demand and prices. However, this also means the area could see higher rental prices and faster property appreciation. On the other hand, cities experiencing resident departures may see a softening real estate market due to lower demand.
Where Should You Invest?
The best place to invest in 2026 depends on your personal strategy, risk tolerance, and financial goals. Whether looking for a forever home that can generate additional income, chasing appreciation in a growing urban centre or looking for steady cash flow in smaller cities, the Canadian housing market still offers real opportunities if you know where to look.
Are you looking to add income properties to your investment portfolio? Contact nesto mortgage experts and find the advice and guidance you need to move forward with your purchase.
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