Best Areas to Invest in Real Estate in London, Ontario (2026)

beige living room with a tv and two chairs facing it

London, Ontario continues to attract real estate investors looking for strong rental demand, steady appreciation, and lower entry prices compared to the GTA. With a growing population, two major post-secondary institutions, and expanding healthcare and manufacturing sectors, London remains one of Southwestern Ontario’s most stable investment markets.

If you’re considering buying an investment property in 2026, here are the best areas in and around London, Ontario to focus on.

Why Invest in London, Ontario Real Estate?

Before choosing a neighbourhood, it’s important to understand why London works as an investment market:

  • Population growth and urban expansion
  • Western University and Fanshawe College student housing demand
  • Strong healthcare sector (LHSC & St. Joseph’s)
  • Relative affordability compared to Toronto, Kitchener, and Hamilton
  • Consistent rental demand across multiple property types

London offers a mix of student rentals, single-family homes, duplex conversions, and small multi-family properties, making it attractive to both beginner and experienced investors.

1. North London (Masonville & University Area)

Best for: Student rentals and long-term appreciation

North London remains one of the most desirable areas in the city. With close proximity to Western University, Masonville Mall, and major amenities, rental demand here is extremely consistent.

Why investors like North London:
  • High student rental demand
  • Strong resale value
  • Established neighbourhoods
  • Lower vacancy risk

Student rentals near Western can generate strong cash flow when structured properly, especially 4–5 bedroom properties rented by the room.

2. South London (White Oaks & Summerside)

Best for: Affordable entry points and family rentals

South London offers more affordable purchase prices compared to North London, making it appealing for first-time investors.

Why it works:
  • Strong demand from families
  • Good access to Highway 401
  • Growing subdivisions (Summerside)
  • Steady rental appreciation

This area works well for single-family long-term rentals or legal basement suite conversions.

3. East London (Argyle & Hamilton Road)

Best for: Cash flow-focused investors

East London generally offers lower purchase prices, which can improve cash flow potential.

Advantages:

  • More affordable properties
  • Higher rental yield potential
  • Ongoing revitalization in some pockets
4. Old South & Wortley Village

Best for: Appreciation and quality tenants

Old South is one of London’s most charming and desirable neighbourhoods. While properties here can be more expensive, tenant quality and long-term value tend to be strong.

Why investors like it:

  • Walkable community
  • Strong demand from young professionals
  • Stable property values
  • Low vacancy

This area is ideal for long-term appreciation investors rather than pure cash flow investors.

5. Hyde Park & Northwest London

Best for: Newer builds and long-term stability

Hyde Park continues to grow with new developments and retail expansion.

Investment benefits:

  • Newer homes with lower maintenance
  • Strong family rental demand
  • Consistent appreciation

While initial purchase prices may be higher, maintenance costs are typically lower compared to older properties.

Surrounding Areas Worth Considering

Investors priced out of London proper are increasingly looking at nearby communities.

St. Thomas, Ontario

Located just 20 minutes south of London, St. Thomas offers:

  • Lower purchase prices
  • Growing manufacturing sector
  • Increased rental demand
  • Small-town growth potential

This market has gained attention due to new economic development and population growth.

Woodstock, Ontario

About 45 minutes east of London, Woodstock has:

  • Industrial employment growth
  • More affordable housing
  • Solid rental demand

This area can offer better cash flow compared to London.

Strathroy & Komoka

Smaller communities west of London are attracting families seeking affordability while commuting into the city. Investors targeting long-term appreciation may find opportunities here.

So, is London, Ontario Still a Good Investment in 2026?

London remains one of the more balanced real estate markets in Ontario. While it may not see the rapid spikes of larger cities, it offers:

  • Stability
  • Predictable rental demand
  • Moderate appreciation
  • Strong student and healthcare-driven economy

For investors seeking long-term growth with manageable risk, London continues to be a strong option. The best area to invest in real estate in London, Ontario depends on your goals, like your cash flow, appreciation, or long-term stability.

Your strategy will determine the best area:

  • Student rentals: North London near Western University
  • Single-family long-term rentals: South and Northwest London
  • Duplex/BRRRR strategy: East London
  • Appreciation-focused investing: Old South or Masonville
  • Lower entry pricing: St. Thomas or surrounding towns

Before purchasing, run detailed numbers and consider working with a local real estate professional or property manager who understands the London market.

Ready to Invest in London, Ontario Real Estate?

Whether you’re buying your first rental property or expanding your portfolio, choosing the right neighbourhood makes all the difference.

Platinum Key Property Management helps investors:

  • Identify high-performing areas in London and surrounding towns
  • Analyze cash flow and ROI before you buy
  • Find student rental and multi-family opportunities
  • Navigate Ontario landlord regulations
  • Manage properties professionally to reduce vacancy and risk

If you’re considering investing in London, Ontario in 2026, let’s talk strategy first.

👉 Book a Free Investment Strategy Call
👉 Get Our Current List of Investor-Friendly Properties