Ottawa is a historically safe and stable real estate market due to high salaries and anchor employers in the technology and public sectors. Rockland is still one of the fastest-growing municipalities in eastern Ontario, with an annual average of 175 new homes built in addition to over 25,000 square feet of commercial/industrial development. As of 2021, Statistics Canada pegged the average household income of Rockland at $106,000, whereas in Ottawa, it is $102,000, and in Toronto, it is $84,000. These higher income numbers mean rental rates are similar to urban Ottawa’s. With the cost of acquisition and labor lower in Rockland than in Ottawa, the economics of rental real estate development are highly favorable.
A recent economic study completed last year highlights the favorable economic tailwinds Rockland continues to enjoy:
The total population of Clarence-Rockland increased by an average of 372 or 1.8% from 2006 to 2016. Considering that an average annual population growth of 1% represents a growing and balanced economy, both areas’ past and future growth have exceeded this generally accepted growth standard.
Due to the development of many housing units of over $350,000 and the attraction of affluent families, including those from Ottawa, incomes in both areas have significantly increased recently. This is particularly important since the incomes of the adjacent City of Ottawa are often among the top three to five cities in Canada.
Another critical factor is the planned expansion of Highway 174. Its exact timing still needs to be determined; however, when completed, it will make access from the eastern parts of Ottawa to Rockland much easier, faster, and more convenient. Talks are currently underway between Ottawa and the Province. Similar to the expansion of Highway 7 for Carleton Place, Highway 174 is expected to be a significant economic growth catalyst for Rockland and ultimately add upward pressure to existing asset values.
The current rental market quality in the area is sub-par. Because Rockland is an older, established Franco-Ontarian community, there are several rentals in the community; however, much of the stock is in disrepair. Blair Capital has acquired some of the assets, including some neglected properties. By adding newer class B+ rental properties, Blair Capital will add more desirable and in-demand rental properties to the local housing mix. Finally, Rockland is still considered affordable compared to urban metros like Ottawa and, therefore, continues to attract younger professionals and families who are increasingly looking for rentals amidst high house prices.
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