This Ontario City Has The Fastest Rising House Prices In The Country & Here's Why

There's no doubt that buying a house in Toronto is a next-to-impossible feat, which has pushed many first-time homebuyers outside of the GTA to get their foot in the housing market. Since so many out-of-towners are moving to this one Ontario city, their house prices jumped up so much so that it had the highest growth rate in all the country toward the end of last year.

In a recent Royal LePage article, the real estate company pointed to Kingston as the city that's seen the highest home price appreciation rate in all of Canada last quarter.

Due to its "perfect combination of downtown lifestyle and suburban comfort," and with short commute times from its outskirts to the downtown core, Kingston has reportedly become a sought-after place to live in.

Based on the data from the Royal LePage House Price Survey, the aggregate house price in this Ontario city rose 38.1% year-over-year to a whopping $722,100 in the last quarter of 2021. The median single-family detached home is going for even more than that at $780,600.

As for Kingston's condo prices, the median price also rose by 20.1% to $423,600. So, with all of these figures, Kingston clinched the number-one spot of all 62 regions considered in the quarterly report.

"Kingston continues to see high demand for properties, which are selling at record prices as inventory remains limited," said Bob Armer, area manager for Royal LePage ProAlliance Realty.

"This is largely driven by an influx of out-of-town buyers who are looking to move away from large urban centres or purchase recreational properties."

So, which out-of-towners are snatching up Kingston homes?

Armer says nearly half of current buyers are coming from outside of the Kingston region, the majority of which are coming from the GTA (likely running away from Toronto's out-of-this-world prices for homes).

While Kingston isn't as big as the 6ix, the article points to its bumping job market, variety of restaurants and short drive to cottage country as some of the reasons why it's becoming a popular place to buy a home.

But non-local homebuyers are making it difficult for born-and-raised Kingston residents looking to buy their first homes.

"Almost every listing sells in a multiple-offer scenario, which makes it very challenging for locals and first-time buyers to compete," Armer said.

A recent survey from U-Haul also pointed to North Bay, Belleville and Greater Sudbury as other top choices for Canadians to move to.

This article's cover image was used for illustrative purposes only.