Why Yellowknife will be a great place to invest when interest rates drop

Yellowknife will be a great place to invest your money when interest rates begin to drop

Its no secret Yellownife has a very tight rental market. Yellowknife has very little rental inventory at any given time and comparable rental rates to cities such as London, Ontario and Kelowna, British Columbia. Though Yellowknifers pay similar rental rates as larger southern cities the average home price in these jurisdictions is $656,037 and $989,900 respectively compared to Yellowknifes average home cost of approximately $501,000 (for the last 12 months of MLS sales at the time of writing this blog post.).

With similar rent rates but easier to manage rent rates the only question is will the rental market hold up. I foresee the next 10 years at least being quite stable in Yellowknife with Ekati Diamond mine planning to extend its lifetime, the Giant mine remediation project, a growing tourism sector, continued growth with the Canadian Armed forces in Yellowknife and the North being just a couple of the larger driving factors behind stability in the Yellowknife economy. 

With interest rates on the decline and rent rate stability on the horizon I feel Yellowknife will be a great place over the coming couple years to make some strategic investments in the real estate market. Whether that be single family, multi family or future development Yellowknifes real estate market is still affordable and fruitful with upside in years to come.

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