When people talk about real estate investing in Ontario’s university towns, cities like Waterloo, Hamilton, Kingston, and London usually take the spotlight. But experienced investors know that some of the best opportunities are often found in smaller, up-and-coming markets—especially where there’s strong rental demand, lower entry prices, and a steady student population.
That’s why Zoocasa took a closer look at three of Ontario’s smaller university cities: Niagara (home to Brock University), Peterborough (home to Trent University), and Windsor (home to the University of Windsor), which have similar-sized student populations.
Using local real estate data and current rent prices from Zumper.com, we found out which market offers investors the best combination of affordability, demand, and long-term growth potential.
By the Numbers: Windsor Offers Exceptional Affordability
The average apartment price in Windsor is just $370,000, well below Niagara’s $440,600 and Peterborough’s $463,102. That difference of $70,000 to $90,000 in upfront costs could shave years off your down payment timeline. Whether you’re a first-time investor or expanding your portfolio, Windsor offers a far more accessible entry point. Lower purchase prices also mean smaller mortgage payments, better cash flow, and a higher chance of turning a profit sooner rather than later.
Strong Rents, Low Stress While Investing in Windsor
Windsor’s rental market remains competitive, with average monthly rents of approximately $1,400 for one-bedroom units and $1,691 for two-bedrooms, comparable to rates in Peterborough and Niagara. However, with significantly lower property prices, these rental figures translate into more substantial returns on investment, improved monthly cash flow, and reduced financial pressure for property owners.
Peterborough: High Rent-to-Price Ratio in a Tight Market
Peterborough’s rental rates are among the highest relative to property price, with average rents of $1,704 for one-bedroom and $1,999 for two-bedroom units. While the average apartment price is $463,102, this rent-to-price ratio offers balanced cash flow potential.
Trent University’s 14,000-student population fuels consistent rental demand, while the city’s tight housing market helps keep vacancy rates low and rent growth steady. Peterborough presents a strong case for investors prioritizing reliable income in a competitive market.
St.Catharines-Niagara: Student and Tourist Potential
Niagara draws around 13 million visitors from around the world every year, making it a major tourism hotspot. At the heart of the region is Brock University, located in St. Catharines, the biggest city in Niagara. That student population creates steady rent demand, especially for two-bedroom units and shared houses.
The area’s mix of students and tourists makes it even more appealing for investors. This gives landlords the flexibility to choose between long-term tenants or furnished short-term rentals, depending on the season and demand.
Windsor’s Strong Appreciation Potential
While Niagara and Peterborough may lead during current rental yields and tenant demand, in addition to its student population, Windsor is undergoing a transformation that positions it for long-term growth and increasing investor interest. Backed by billions in infrastructure investment, the city is preparing for a new economic chapter that will impact housing demand for years ahead.
Projects like the Gordie Howe International Bridge, which will connect Windsor and Detroiort, the NextStar Energy battery plant, and a new “mega” regional hospital targeted for completion in 2031 are expected to bring thousands of new jobs to the region. As workers, professionals, and their families move to Windsor, demand for rentals and ownership housing will rise, likely creating a steady pipeline of tenants and buyers.
Infrastructure projects often catalyze property value growth, especially in areas close to job hubs, transit routes, and healthcare centers. Investors who enter Windsor’s market now may benefit from future appreciation as the region becomes more connected and economically vibrant.
Investors can align their strategies with immediate returns and future growth by weighing Niagara’s and Peterborough’s current strengths against Windsor’s long-term potential. Each city offers a unique opportunity; however, investing in Windsor real estate offers this opportunity at a lower price point, with more upside on the horizon.
Methodology:
- The apartment price for Peterborough is based on the year-to-date 2024 condo prices reported by the Central Lakes Association of Realtors.
- The benchmark apartment price for the Niagara Region reflects the most recent data available from the Niagara Association of Realtors, last updated in October 2024.
- Windsor-Essex County reported a median sale price of $370,000 for the fourth quarter of 2024.
