For years, the Kingston real estate market has been an affordable option for families especially for those who have been unable to purchase homes in the Greater Toronto Area (GTA) region. However, as a result of the coronavirus pandemic, major urban centres, suburbs, and rural communities have experienced tremendous sales and pricing growth including Kingston – situated within 3 hours drive of 33% of Canada’s population directly in the middle of  Toronto – Montreal – Ottawa over 10 million people in total.

Kingston real estate is among the hottest in Canada today. Home prices have surged 34% year-over-year, while residential sales have surged 90% over the last 12 months.

Strong demand, tight supply, historically low interest rates, and changing homebuyer trends have led to one of the most prosperous periods for Kingston’s real estate market.

In Kingston, the average price of a new home is expected to increase 10% in 2022 to an average of $639,141. According to a recent Remax report, out-of-town buyers from “larger, pricier regions” are expected to drive demand in 2022.

“Low housing supply along with the possibility of rising interest rates may slow activity and price growth in 2022,” said the 2022 Canadian Housing Market Outlook report for Kingston, noting sales are expected to decline 5% in 2022. The average price of a new home in Kingston increased 23% in 2021 to $581,037.

Rental Market

Kingston has a population of 136,685 (2017)

• Kingston has the lowest vacancy rate in Ontario 10th lowest now per statcan
• Healthy vacancy rate is considered to be 3%. Kingston has a 2.9% vacancy rate
• Among new building (built after 2005) vacancy rate is only 0.3%
• Kingston has the 3rd highest rental rates in Ontario only behind Toronto and Ottawa
• Rental rates increased 7.9% 2018-19
• Current supply of student rentals are 50-100 year old houses in poor condition, no amenities, and high maintenance costs
• 1 and 2 bedroom new purpose built luxury accommodations are scarce and highly sought after
• Students at Queen’s pay $750-800/month for a bedroom in a 5-7 bedroom house. More than 40% more than the same type of accommodation in Waterloo or Hamilton
• Low supply has led to record low vacancy rates and very high rental rates
• In addition wealthy students and a growing number of international students desire luxury private accommodations and they can afford higher prices

Real Estate Market

Kingston prices appreciated 11.6% in 2020

• Inventory is at a record low in 2021
• Record high in sales in April occurred in 2021
• Average list price of $1.2M
• Only four high-rise condo buildings in Downtown Kingston. Two built over 25 years ago that do not have modern amenities and the third building is dedicated to affordable housing
• Since 2011, only 17 condo sales have occurred within the upper echelon of available condos at 5 Gore. Sale prices since 2019 have been between $1.1 and $1.8 million!

Barriers to entry to build in Kingston

Queen’s University is surrounded by heritage protected 2 storey residential neighbourhoods.

● Altus Group construction cost guidelines show Kingston 10% more costly than Toronto

● Kingston sits on top limestone bedrock. Making any excavation very expensive for builders

● Heritage protection creates very few lots that can be developed over time. The increased cost of construction will also deter builders from entering Kingston.

● This means each new building constructed will be more valuable over the long-term due to continued shortage of supply and minimal competition

Queen’s University

26,309 total number of students, and 9,571 staff. Over 3,877 international students with faster enrollment growth than any other University

Queens is home to students from more than 100 countries

• Queen’s University’s enrollments have surged for 2021!
• More than 95% of students come from outside Kingston
• Queen’s on-campus housing can only accommodate 4,500 students (accounts for less than 90% of 1st year students)
• Queen’s has over 6,800 upper year graduate students who tend to desire more private luxury accommodations
• 94.8% retention rate from 1st to 2nd year students, and the #1 graduation rate with 89% graduating in 2018
• Over 1,000 combined students in the School of Medicine and Faculty of Law
• Highest number of A+ students of any university in Canada with an average grade of A+ or 89.2% for incoming students
• Highest number of award winning faculty
• Maclean’s 2016 Rankings report ranked Queen’s #1 in student satisfaction

Wealthy Students

• Temporary Resident Student visa permits in Kingston grew by 187% from 2015-2017
• International students pay more than twice in tuition. Come from very wealthy families and desire private luxury student housing
• Only 30% of its students received government financial assistance compared to 64% at other universities
• Top choice for Ontario’s elite private school students