As the new year begins, we’re all looking forward to seeing what 2018 will bring to the real estate industry in Edmonton and Alberta. At TriUrban, we’ve kept our eye on the important information coming in that determine the forecast for Edmonton’s economy, and housing market, in 2018. We hope you’re ready, because we can’t wait to share this information, and how it will affect property investors, with you.
Edmonton’s Economic Forecast 2018
Edmonton’s economy began to grow much stronger in 2017. The Conference Board for Canada’s (CBOC) Metropolitan Outlook 1 report stated that the city’s GDP was expected to increase by 3.9% this past year – the first increase in three years. In 2018, the GDP is expected to increase by another 2.2%. Similar increases in the province, mostly concentrated in the Edmonton region, will put its GDP higher than the Canadian national average this year.
While many people may harbor doubts about our city’s economy, we at TriUrban agree with the CBOC report’s statement that “The worst appears to be over for Edmonton.” In fact, we believe that not only is the worst over, but the best is coming. Soon.
With employment continuing to grow, consumers beginning to spend more again, things are looking up for our city. If these trends continue into the new year, as the CBOC and other economic reports suggest they will, the forecast for Edmonton’s 2018 is bright and sunny (well, economically speaking at least).
What Does This Mean for Real Estate Investors
Specifically in the world of Real Estate Investment, things are also looking up for the Edmonton area. A few months ago the Real Estate Investment Network (REIN) released it’s annual report of the Top Ten Alberta Towns and Cities for real estate investment. Edmonton landed in the number one spot in the report with surrounding cities Leduc and Fort Saskatchewan taking the third and fourth spots respectively.
So why did these three cities make the top of the list for buying investment properties? It’s because of the economic outlooks, and because of how they fit into REIN’s Long-Term Real Estate Success Formula. The formula is a simple timeline of how the housing market, and property investors, will benefit from economic growth.
Here’s how that works: First, a city experiences Gross Domestic Product (GDP) Growth, as is happening in Edmonton and it’s surrounding cities right now. This is followed by employment growth and then population growth. This is where real estate comes in.
When people move to a city for work, they need a place to live. When there are a lot of people moving to fill a lot of jobs, that city will experience a significant increase in rental demand. This leads to decreased vacancy rates.
At this point, the benefits to investors who have purchased property during the earlier stages become most evident. Now that there are less places available to rent, those who own rental properties will be able to charge higher rent for those properties. When this happens, people begin to buy properties, which in turn leads to increased property prices.
Now, if you own an Edmonton investment property, you’ll be in the perfect position to get your highest ROI.
Get Your Best ROI in 2018 with TriUrban
At TriUrban, we’re excited about what 2018 has to bring for Edmonton and for the real estate market. Despite the changes to Canada’s Mortgage Rules that came into play yesterday, we believe that this will be a year of success for property investors if they know how to get the right property at the right time.
If you’re ready to get an Edmonton area investment property now before the economy and the real estate market reach the top of the long-term success model and housing prices increase, tell us some more about yourself here.
