Windsor Real Estate Investment: Ontario's Hidden Gem Market
Discover why Windsor Ontario is attracting savvy Canadian real estate investors. Expert insights on cap rates, NextStar jobs growth, and Detroit spillover effects.
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If you’re looking for the next big opportunity in Canadian real estate, you might want to pay attention to Windsor, Ontario. This border city is experiencing explosive growth that many investors are just starting to notice.
We sat down with Alex Sciatoli, an investment-focused realtor from Windsor who brings a unique background in law, manufacturing, and real estate to help investors make smart decisions in this growing market.
Why Windsor Is Heating Up Right Now
Windsor is seeing growth across every sector – single-family homes, commercial properties, industrial spaces, and even multi-million dollar luxury homes. The cranes are everywhere, which is always a good sign.
Here’s what’s driving this growth:
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About one million new Canadians entering the country each year, with most heading to Ontario for jobs
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Major infrastructure projects bringing thousands of new jobs
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A housing shortage that creates strong demand for all property types
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Detroit’s renaissance spilling over across the border
The Detroit Connection Matters
Windsor and Detroit have always moved together economically, even though they’re in different countries. When Detroit struggled, Windsor felt it too. Now that Detroit is experiencing serious revitalization with cranes throughout the city and major community improvements, Windsor is following suit.
The U.S. real estate market is booming, and Canada tends to follow that pattern. For Windsor, being right across the border from a city on the rise means good things ahead.
Major Projects Bringing Jobs and Growth
Several massive projects are reshaping Windsor’s economy:
NextStar Energy Battery Plant
This is the big one. Over 350,000 square feet of space bringing about 10,000 new employees. That’s not just 10,000 jobs – it’s 10,000 people who need to eat, shop, live somewhere, and spend money. The ripple effect touches every part of the local economy.
Other Game-Changers
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A new mega hospital off Highway 42
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Amazon fulfillment plant adding logistics jobs
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The Gordie Howe International Bridge improving cross-border connections
You can see the impact already. Restaurants are busier, streets are more crowded during the week, and commercial spaces are filling up with tenants.
The Interest Rate Timing Trap
Here’s something most buyers get wrong. They’re sitting on the sidelines waiting for interest rates to drop before jumping into the market. Sounds smart, right?
Wrong.
When rates finally drop, everyone waiting rushes in at the same time. That creates bidding wars and pushes prices up. You end up paying more for the property even though your rate is lower.
If you’re approved for financing and have cash ready, right now is actually a great time to buy. Less competition means better deals and more choice. You can always refinance later when rates drop.
Investment Opportunities in Windsor
For New Investors
Starting out? Single-family homes that you can rent out or convert to include an accessory dwelling unit (ADU) can work well. The housing shortage means strong rental demand.
But be careful with ADUs. Windsor has specific zoning rules (Section 1 and Section 2 designations), and the city is actively enforcing them. Make sure you pull proper permits and follow building codes. One investor recently bought a foreclosed property where the previous owner started an ADU conversion without permits and ran out of money. With proper planning and permits factored into the numbers, it still worked out great.
For Experienced Investors
Most investors coming from the Greater Toronto Area want to see a 10% Cap Rate on commercial or multi-unit properties. That’s a smart target because it gives you a cushion for the inevitable surprises – roof repairs, system replacements, tenant issues.
Distance investing always carries extra risk, so you need strong cash flow to protect yourself.
How to Invest from Out of Town
If you’re not local to Windsor, here’s how to do this right:
Join Investment Groups
Connect with Ontario-based or national real estate investment groups. You’ll meet experienced investors, learn about the market, and get introduced to trustworthy service providers.
Work with Specialized Mortgage Brokers
Find brokers who focus on investment properties and understand creative financing. They know how to structure deals and have connections to investor communities.
Vet Everyone Thoroughly
This is critical. Just because someone has a real estate license doesn’t mean they know investment properties. You need to grill potential realtors, contractors, and property managers.
Ask detailed questions about their experience. Request references from previous investor clients. Test their knowledge of cap rates, cash flow analysis, and exit strategies. Make sure they know as much or more than you do about the type of investment you’re pursuing.
As Alex puts it: “There’s a lot of realtors that have just come from selling t-shirts and now they’re selling houses and they think it’s the same thing.” Don’t let someone practice on your investment dollars.
Looking Ahead: The Ten-Year Outlook
The next ten years in Windsor look incredibly promising. All the factors are lining up – infrastructure investment, population growth, employment opportunities, and spillover from Detroit’s growth.
Real estate moves in cycles, and Windsor has seen its share of ups and downs. But right now, multiple positive forces are converging at the same time. That doesn’t happen often.
The housing shortage isn’t going away soon. The major employers are just getting started. And the city is finally getting the attention and investment it deserves.
The Bottom Line
Windsor represents a rare opportunity – a market with strong fundamentals that hasn’t been picked over by every investor yet. You can still find deals that make sense.
But you need to do your homework. Understand the local market. Work with professionals who specialize in investment properties. Run the numbers conservatively. And don’t wait for perfect conditions – they don’t exist.
If you’re looking to add to your portfolio or make your first investment property purchase, Windsor deserves a serious look. The cranes are up, the jobs are coming, and the opportunity is real.
Frequently Asked Questions
Why is Windsor, Ontario a good place to invest in real estate right now?
Should I wait for interest rates to drop before buying investment property?
What cap rate should I target for investment properties in Windsor?
Can I convert a single-family home into an ADU in Windsor?
How do I find a good realtor for investment properties if I'm not local to Windsor?
What makes Windsor's growth different from other Ontario markets?
What's the connection between Detroit and Windsor real estate?
What should out-of-town investors know before buying in Windsor?
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.
Written by
LendCity
Published
December 22, 2025
Cap Rate
Capitalization Rate - the ratio of a property's net operating income (NOI) to its current market value or purchase price. A 6% cap rate means the property generates $60,000 NOI annually on a $1,000,000 value. Used to compare investment properties regardless of financing.
Cash Flow
The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.
Interest Rate
The cost of borrowing money, expressed as a percentage. It determines how much you pay on top of the principal borrowed.
Refinance
Replacing an existing mortgage with a new one, typically to access equity, get a better rate, or change terms. Investors commonly refinance to pull out capital for purchasing additional properties (cash-out refinance) while retaining ownership of the original property.
Single Family
A detached home designed for one household, the most common property type for beginner real estate investors.
Mortgage Broker
A licensed professional who shops multiple lenders to find the best mortgage rates and terms for borrowers. Unlike banks, brokers have access to dozens of lending options.
Market Value
The estimated price a property would sell for on the open market under normal conditions. Determined by comparable sales, location, condition, and market demand.
ROI
Return on Investment - a measure of profitability calculated by dividing net profit by total investment. Used to compare the efficiency of different investments.
Hover over terms to see definitions, or visit our glossary for the full list.