Why are so many Niagara residents worried about where they'll live? Recent data shows that 12.8% of Niagara residents name housing affordability as their top concern, while 11.7% list overall cost of living as their main worry. The numbers tell a troubling story about the region's housing situation.
A staggering 72% of locals feel that housing affordability has gotten worse over the past five years. Even more concerning, 89% agree that finding housing is harder now than it was five years ago. This pressure is causing 32% of residents to contemplate moving away from the area entirely.
The market shows why these concerns exist. The average Niagara home now costs $695,384 in 2024. While sales have increased by 4.2% from 2023 to 2024, and listings are up by 28.6%, prices remain high for many locals. Experts predict another 2% increase in average residential prices for 2025. Areas like Welland offer best value for first-time homebuyers with an average price of $615,000, significantly below the regional average.
Different groups drive the market in various ways. First-time homebuyers typically look for $500,000 detached homes, while move-up buyers target new constructions in the $800,000 to $1,000,000 range. Many buyers from the GTA, Peel, and Halton regions continue moving to Niagara.
The rental market offers little relief. In St. Catharines, the average asking rent is $1,954 for a two-bedroom and $1,698 for a one-bedroom apartment as of May 2024. Since 2016, there's been an 8.6% increase in households spending more than 30% of their income on housing.
Government officials are working on solutions. The Niagara Region aims to build 8,000 new homes by 2031, as part of Ontario's larger goal of 1.5 million new homes in the next decade. The City of Niagara Falls has created a Housing Strategy with 21 specific actions.
Looking ahead, experts expect some improvement in buyer confidence for 2025, especially if interest rates decrease. Many are calling for reduced development charges and more diverse housing types across Niagara's 12 municipalities.
