Skip to content
RealEstate Niche
Menu
  • Rent Out Property
  • Sell Home
  • Real Estate News
  • Land
  • Realtor
Menu

Investors ‘crowding out’ first-time homebuyers in London: Expert

Posted on 28/02/2023 by

Breadcrumb Trail Links

  1. Local News

London has become a big magnet for real estate investors, who own about a third of all housing in the city and are scooping up entry-level properties, a new study show.

Published February 21, 2023 • Last updated 1 week ago • 3 minute read

25 Comments

For sale signs in front of three homes on Springmeadow Road in London on Thursday, Jan.  26, 2023. (Derek Ruttan/The London Free Press)
For sale signs in front of three homes on Springmeadow Road in London on Thursday, Jan. 26, 2023. (Derek Ruttan/The London Free Press)

Article content

London has become a big magnet for real estate investors, who own about a third of all housing in the city and are scooping up entry-level properties, a new study show.

Advertisements 2

This advertisement has not been loaded yet, but your article continues below.

London Free Press NewsConnect Powered by Postmedia Network

REGISTER TO UNLOCK MORE ARTICLES

Create an account or sign in to continue with your reading experience.

  • Access articles from across Canada with one account
  • Share your thoughts and join the conversation in the comments
  • Enjoy additional articles per month
  • Get email updates from your favorite authors

Article content

That’s putting added pressure on an already tight housing market and contributing to London’s affordability crisis, especially among first-time homebuyers and renters, some observers say.

LFP Noon News Roundup Banner

Sign up to receive a curated collection of links and highlights from our award-winning breaking news coverage, in-depth analysis and unmatched investigative features at lunchtime weekdays.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Thanks for signing up!

A welcome email is on its way. If you don’t see it, please check your junk folder.

The next issue of LFP Noon News Roundup will soon be in your inbox.

We encountered an issue signing you up. Please try again

Article content

According to a first-of-its-kind Statistics Canada report, 30.8 per cent of all property types in the London area, which includes parts of Elgin and Middlesex counties, were owned by investors in 2020. That’s above the provincial average of 24 per cent, and higher than those in Toronto (18.3 per cent) and Vancouver (22.1 per cent), Canada’s priciest housing market.

But London’s share of investor-owned properties goes up compared to the province and other larger centers when looking at lower-priced “starter properties,” such as townhouses, coveted by first-time homebuyers.

Advertisements 3

This advertisement has not been loaded yet, but your article continues below.

Article content

Though investors own only about 11 per cent of the market’s single-family homes, for example, they own 34 per cent of the city’s row houses, topping rates in Ontario (20.8 per cent), Toronto (16 per cent) and Vancouver (11.3 per cent).

That figure skyrockets when looking at London-area condo apartments, with investors owning a whopping 86 per cent – ​​more than twice the Ontario average.

“I live in Vancouver. Very few things faze me when it comes to real estate. . . and I’m actually very shocked,” Andy Yan, director of Simon Fraser University’s city program, said of London’s figures, especially in the condo sector.

When investors buy up big chunks of housing, it makes it harder for many people to enter into home ownership, he said. That, in turn, forces them to keep renting, reducing rental unit availability and pushing rents up.

Advertisements 4

This advertisement has not been loaded yet, but your article continues below.

Article content

That’s a visible reality in London, where rents have doubled in the last six years, coinciding with strong population growth, including large numbers of people drawn from other parts of Ontario by the city’s comparable affordability.

“If you’re building all these new units, but yet you know that these units are being competed for between people. . . looking for a place to live versus those looking for a place to invest, my supposition is those looking for a place for a home will be crowded out by those looking for a place to invest,” Yan said.

According to the latest Canada Mortgage and Housing Corp. (CMHC) rental report, the going rate for a London two-bedroom apartment in October was $1,664, beyond what’s deemed affordable for 60 per cent of Londoners.

Advertisements 5

This advertisement has not been loaded yet, but your article continues below.

Article content

According to Rentals.ca, a website landlords use to advertise units, the asking rent for a two-bedroom unit in the city was $2,142 in January.

One major issue London faces is the financialization of housing, said Jordan Smith, a local leader with the ACORN tenants group.

“The housing crisis is not fundamentally a lack of housing,” he said. “It’s a lack of affordable housing and the fundamental lack of targeted housing that actually meets the needs of the population.

“London continues to develop and that development is great, but the problem is, again, these homes are popping up across London. . . These giant houses that are being allowed to be developed on the outskirts of the city are not the housing that many people who live in this city can afford.”

Advertisements 6

This advertisement has not been loaded yet, but your article continues below.

Article content

Diana Mok, a Western professor who studies real estate finance, said several factors make London an attractive destination for investors, especially those eyeing condo apartments.

One is the city’s large student population, which makes London “a city full of demand for rental units.”

Interest in housing used as an investment tool is also likely to spike in Ontario after the province removed rent controls on new builds after 2018, Mok said.

“That may have created an incentive for Canadians to now become investors and landlords, in particular,” she said, noting condo units offer the advantage of having management companies take care of day-to-day operations and ensure properties are properly maintained.

“London has a lot of students who are good renters and become a stable source of income at least for the next four years,” he said.

jjuha@postmedia.com

Twitter.com/JuhaatLFPress

Share this article in your social networks

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourages all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Join the Conversation

Advertisements 1

This advertisement has not been loaded yet, but your article continues below.

Category: Rent Out Property
  • Exploring the World of Antique Jewelry
  • The Health Risks of a Sedentary Lifestyle vs. Active Sports
  • The Future of Nutrition: Technology-Enhanced Eating
  • The Ultimate Kitchen Cleanup Guide for Home Cooks
  • Exploring the World of International Street Food

alternative ways to sell your house buy my house home realtor home sellers house buying companies house realtor houses how do you search by mls number? how to sell your home online how to sell your house by owner how to sell your own house my realtor national association of realtors realtor realtor.com find a home realtor.com florida realtor.com mi realtor.com official site realtor.com rentals realtor.com texas realtor definition realtor homes for sale realtor logo realtor md realtor nc realtor near me realtor net realtor on realtor one realtor pa realtor pronunciation realtors realtor websites sell home by owner sell home for cash sell home online sell home quick selling a house sell my home sell my own home steps to selling a house by owner the realtor the realtors what does a realtor do yahoo real estate listings

  • Contact Us
  • Disclosure Policy
  • Sitemap
  • Exploring the World of Antique Jewelry
  • The Health Risks of a Sedentary Lifestyle vs. Active Sports
  • The Future of Nutrition: Technology-Enhanced Eating
  • The Ultimate Kitchen Cleanup Guide for Home Cooks
  • Exploring the World of International Street Food

alternative ways to sell your house buy my house home realtor home sellers house buying companies house realtor houses how do you search by mls number? how to sell your home online how to sell your house by owner how to sell your own house my realtor national association of realtors realtor realtor.com find a home realtor.com florida realtor.com mi realtor.com official site realtor.com rentals realtor.com texas realtor definition realtor homes for sale realtor logo realtor md realtor nc realtor near me realtor net realtor on realtor one realtor pa realtor pronunciation realtors realtor websites sell home by owner sell home for cash sell home online sell home quick selling a house sell my home sell my own home steps to selling a house by owner the realtor the realtors what does a realtor do yahoo real estate listings

© 2025 RealEstate Niche | Powered by Minimalist Blog WordPress Theme

WhatsApp us