Is London, Ontario a good place to invest in real estate?
Yes, if you buy on today’s numbers. London has steady rental demand, but an average house bought at full price often will not cover its costs.
You might be worried about buying a rental that costs you money every month. That is the right worry, so we start there.
The Bottom Line (Quick Answer)
- London, Ontario can be a good place to invest in real estate, if you buy on today’s numbers.
- The average London sale price was $591,927 in September 2026. That is a change of -3.8% over the year (LSTAR / CREA).
- At that price, a plain single-family rental often does not cover its costs. Some types can: two to four units, rooms rented one by one, or living in one unit. The Ken Small Real Estate Team helps you run the numbers, find the property, and walk away from bad ones.
The short version
- Many rentals bought at full price lose money each month. Buy on what the property earns today.
- Test any property in the London Rental Property Calculator before you fall for the house.
- Plan on at least 20% down for a property you will not live in. Then add closing costs.
Why do investors look at London?
London is a mid-size city with steady demand. Three reasons do not depend on this month’s headlines:
- A university town. Western University and Fanshawe College bring renters back every September.
- Relative affordability. London’s average price sits below the GTA. That keeps drawing buyers, renters and employers west along the 401.
- Jobs in many fields. Health care, schools and colleges, insurance and factories. No single employer carries the city.
How is the London market doing right now?
In September 2026, London’s average sale price was $591,927. That is a change of -3.8% over the year. London had 5.7 months of inventory.
Here is the current picture, dated and sourced:
| Measure | Figure | As of / source |
|---|---|---|
| Average home price (City of London) | $591,927 | September 2026 · LSTAR / CREA |
| Single-Family benchmark price (all LSTAR regions) | $600,700 | September 2026 · LSTAR / CREA |
| Two Storey benchmark price (all LSTAR regions) | $648,100 | September 2026 · LSTAR / CREA |
| One Storey benchmark price (all LSTAR regions) | $541,300 | September 2026 · LSTAR / CREA |
| Townhouse benchmark price (all LSTAR regions) | $421,500 | September 2026 · LSTAR / CREA |
| Apartment benchmark price (all LSTAR regions) | $317,100 | September 2026 · LSTAR / CREA |
| 1-year change, average sale price (City of London) | -3.8% | September 2026 · LSTAR / CREA |
| Months of inventory (City of London) | 5.7 months | September 2026 · LSTAR / CREA |
LSTAR / CREA figures for September 2026. Benchmark prices are MLS® HPI benchmarks for all LSTAR regions, not averages and not only the City of London. Ask Ken for a property’s own numbers before you buy.
What this means for you: compare the price with the rent you can charge. That gap decides if a property makes money. The neighbourhood matters less than that gap. So the work is in the numbers.
Do London rentals cash-flow?
Often not, at full retail price. London’s average price was $591,927 in September 2026. At that price, a single-family rent rarely covers the mortgage and costs at 20% down.
Many London retail rentals lose money each month, so you would feed them. Sometimes that is a planned bet on prices rising. It should never be an accident.
Test any property in the London Rental Property Calculator before you fall for the house. It shows the cap rate, monthly cash flow and cash-on-cash return. No sign-up.
What are the risks of investing in London?
If an investment only sounds good when you leave things out, it is not a good investment. Weigh these before you buy:
Prices can fall
London’s average sale price changed by -3.8% in the year to September 2026. Source: LSTAR and CREA. Rising prices are not a guarantee. Anyone who tells you they are should worry you. Buy on what the property earns today.
Student demand softened
In January 2024, Canada set a two-year cap on new international study permit applications. Source: Canada.ca, January 22, 2024 (opens in a new tab). The cap is still in place for 2026. Source: Canada.ca, November 25, 2025 (opens in a new tab). Student rentals still work. Underwrite them with caution, not with a full house in mind.
Rates and rules
Borrowing costs change your whole return. The City of London also licenses some rental units. You hear about both before you commit, never after.
Where are the returns in London?
The average house at the asking price usually does not cash-flow. These do the heavy lifting for London investors, each with its trade-off:
- Two to four units in one building
More rent per building, and the risk is spread across units. The trade-off: they cost more up front and are harder to find well-kept.
- Student rentals, rented by the room
Near Western and Fanshawe, rent by the room can beat renting the whole house. The trade-off: more turnover, more management, and licensing rules.
- Live in one unit, rent the rest
Investors call this house-hacking. That often means a smaller down payment, and the rent offsets your own housing cost. The trade-off: you share a building with your tenants.
- A legal second unit
Adding a legal suite to a single-family home can turn a thin deal into a working one. The trade-off: permits, cost and time before it pays off.
See it for any London property, free
Put in a real price and rent. The calculator shows the cap rate, monthly cash flow and cash-on-cash return in seconds. It will tell you the truth, even when the answer is “walk away.”
How much money do you need to invest in London?
Plan on at least 20% down for a property you will not live in. Then add closing costs. Our Buyer Closing-Cost Calculator adds them up for you.
Live in one unit of a multi-unit building, and you may need less down. A mortgage broker confirms your numbers. Start with how to get pre-approved.
What it costs to buy with us. It costs $495 to start. Our commission is 3%, paid from the seller’s side of the deal. If a seller offers our brokerage less than 3%, you never pay the difference. Every number is on buyer pricing and fees.
Who London investing is for — and who it isn’t
A fit if you…
- ✓ Are buying to hold and want steady rent, not a quick flip
- ✓ Will judge a deal on real numbers and walk from a bad one
- ✓ Are open to more units, student rooms, or living in one unit
- ✓ Are a parent housing a student and want the money to work too
Probably not, if you…
- ✗ Expect big positive cash flow on an average house at retail
- ✗ Are counting on fast price growth to save a thin deal
- ✗ Want fully hands-off with zero management
- ✗ Need the money back inside a year or two
How does Ken work with investors?
Finding the property, checking the numbers, and our read on every deal, including the ones we would skip. You make the call.
★★★★★All the way from the start of the house search, Ken was there to help at every step. From setting up search criteria that exactly met our needs, to getting viewings scheduled, to providing honest feedback about the properties (which is often rare for most agents); Ken went above and beyond our expectations. 10/10 experience with Ken.
J H · Buyer · Apr 2023 · via Google
★★★★★We sold our home! In the midst of interest increases and market pricing decline, Ken was steadfast in his commitment to sell our home. Ken used multiple outlets, went above and beyond to market our property and counselled us well along the way. In the end, we SOLD, and are beginning our next journey as a family. Thank you Ken!
Kristian W. · Seller · May 2023 · via Google
4.9 average from 14 Google reviews, as shown on our reviews page (October 2026). Read every review →
The honest takeaway
If an investment only sounds good when you leave things out, it is not a good investment.
Common questions about investing in London
Is London, Ontario a good place to invest in real estate?
Do rental properties cash-flow in London?
What kind of return can I expect on a London rental?
Are student rentals near Western University a good investment?
How much money do I need to invest in London real estate?
Can Ken help out-of-town or first-time investors?
Thinking about buying a rental in London?
Bring Ken your criteria or an address. We will run the numbers together and name the risks. You decide if it is worth an offer.
About Ken Small
Ken Small, REALTOR®, has been a real estate agent in London since 2003. He leads the Ken Small Real Estate Team at Century 21 First Canadian Corp., Brokerage. The office is at 420 York Street, London, ON N6B 1R1. RECO #4727293. Meet the team →