A recent new study by The National Bank of Canada ranked Niagara second in economic momentum out of 20 urban areas across the country. An increase in the price of houses and investment in non-residential building construction are the main reasons for Niagara’s growth.
About the Study
The National Bank of Canada’s new Metropolitan Economic Momentum Index looked at six key economic indicators to determine the ranking of each of the 20 urban areas. These were house prices, non-residential business construction, house starts, home sales, employment and unemployment levels.
According to the report, the Niagara economy had a substantial increase in house prices, which rose to almost 28 percent this period, and investment in non-residential building construction, which grew by over 30 percent.
Niagara ranked second only to Hamilton. Kitchener-Cambridge-Waterloo, Victoria, B.C. and Gatineau, Que. rounded out the top five urban areas on the Index.
The National Bank of Canada used data from Statistics Canada, Canadian Mortgage and Housing Corporation, the Canadian Real Estate Association and the Teranet-National House Price Index.
Why Niagara’s Economy is Growing
The construction on the massive new General Electric factory in Welland is just one of the examples of new investment in commercial real estate. Niagara's industrial market has grown significantly within the last few years. GO Transit’s 2016 announcement that it will be extending train service into Niagara by 2021 is one of the major drivers that has been attracting people to the region and showcasing Niagara growth.
Regional Chair, Alan Caslin, recognizes the commitment to daily GO Train service, strong growth in the Niagara real estate market, and incredible private sector investment as reasons why it’s a great time to live and work in Niagara. Niagara’s industrial market and Niagara’s real estate market are growing at a rapid pace.
He also recognizes that Niagara’s opportunities for investment, fantastic quality of life, and unmatchable amenities set the region apart from anywhere else.
In 2014, Niagara put an economic development plan in place with over two dozen strategic priorities. Niagara’s ranking on the Metropolitan Economic Momentum Index shows that the region is on track with the ambitious plan.
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