Best Airbnb cities in Ontario, Canada

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Ontario is one of the most interesting provinces of Canada in terms of Airbnb investment. On its territory, there are many cities that offer decent market conditions for aspiring entrepreneurs. Moreover, the variety of markets is rather diverse as well, enabling the investors to find a location that would suit their strategy. There are both large cities with stable markets and smaller locations with almost no competition.

Benefits of Buying an Investment Property in Ontario

Ontario shines brightly in the Canadian landscape, drawing the attention of real estate aficionados globally. Toronto, the pulsating heart of the province, witnessed an impressive surge in property values, making headlines in the international real estate market. However, the allure of Ontario extends beyond its metropolitan areas. Elliot Lake stands out with its unique market dynamics, boasting an Average Daily Rate (ADR) of $228.2 and minimal competition. Niagara Falls, a global tourist magnet, continues to offer promising returns, with an impressive 1,507 active listings. As the world pivots to a post-pandemic setting, destinations like Port Colborne and Norfolk County emerge as enticing prospects for real estate investments. Ontario’s charm is manifold, breaking the mold of mere urban sprawl. From the picturesque shores of Prince Edward County to the serene lakes of Kawartha, the province offers a medley of experiences. Whether it’s the bustling streets of Kingston or the tranquil vibes of St. Catharines, investing in Ontario promises both passive income and significant capital appreciation. The quest at hand is pinpointing the most promising corners of Ontario for a sound real estate venture.

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Metrics to Consider While Planning an Airbnb Investment

Every city in Ontario has a unique short-term rental market, and there are some metrics used to evaluate and compare them with each other. Analyzing them will help to understand the market conditions in every location. The first metric on the list is the number of active listings in the area. Expectedly, it helps understand the level of competition there. To perform a more detailed analysis of the market, it is necessary to consider the types of properties as well. It is possible to find out the percentage of entire home, and private or shared rooms in the region.

The second parameter that should be taken into account is the Average Daily Rate or the ADR. As its name implies, it represents the average price of an Airbnb in the city for a night. It will have a direct impact on the resulting Revenues, so it is reasonable to discover it beforehand. Next on the list is the Occupancy Rate, which represents the percentage of nights the properties in the area are booked for. Last but not least, it is necessary to consider the resulting monthly Revenues generated by properties in every city.

Apart from the parameters themselves, it is also helpful to consider their seasonality. The demand in most regions fluctuates in different seasons. The hosts react to that by adjusting their prices, which changes the ADR metric. As a follow-up effect, the Occupancy Rates change too, in turn, impacting the Revenues.

TOP Cities in Ontario for Launching an Airbnb

The Airbnb business in Ontario is developing rather rapidly. It was on hold because of the pandemic, but the numbers are already recovering. The province offers a ton of opportunities to investors, as there are different cities available for launching a short-term rental business. There are both extremely competitive markets with stable demand and riskier regions that are only starting to become trending among visitors.

City	Revenue, $
Prince Edward County	$5,629
Kawartha Lakes	$5,545
Peterborough	$5,504
Port Colborne	$3,914
Norfolk County	$3,394
Niagara Falls	$3,222
Toronto	$3,051
Kingston	$2,735
St. Catharines	$2,959
Elliot Lake	$2,400

Elliot Lake

Average Daily Rate (ADR): $228.2
Max Daily Rate: $294 in June
Occupancy Rate: 45%
Max Occupancy Rate: 69% in September
Total Available Listings: 33
Rental Sizes: 1 Bedroom: 34%, 2 Bedroom: 23%, 3 Bedroom: 29%, 4 Bedroom: 14%
Listings by Rental Type: Private Room: 11%, Entire Home: 89%
Average Monthly Revenue: $2,400
Max Monthly Revenue: $4,000 in August
Revenue Per Available Room (RevPAR): $98.5
Weekend RevPAR: $219.7
Best Performing Month: August
Market Score: 33

Elliot Lake stands out as one of the unique cities on the list, experiencing minimal competition. Its distinctiveness is emphasized by the mere 33 active listings in its vicinity, with 89% of these being entire homes. When it comes to the breakdown of property sizes, 34% have 1 bedroom, 23% feature 2 bedrooms, 29% offer 3 bedrooms, and 14% are spacious with 4 bedrooms. On average, the properties in Elliot Lake have a daily rate of $228.2, with the highest rate in June reaching $294. The general Occupancy Rate is around 45%, but this figure spikes to 69% in September.

Despite the apparent ebb and flow in business, it’s noteworthy that the average monthly revenue from Airbnbs in the city is $2,400, with August being the most lucrative month at $4,000. The Revenue Per Available Room (RevPAR) stands at $98.5, but over weekends, this number increases to $219.7. The overall market score for Elliot Lake is 33, indicating potential for those considering entering the Airbnb market, although the quality of service remains a determinant factor in performance.

Toronto

Average Daily Rate (ADR): $216.8
Max Daily Rate: $243 in September
Occupancy Rate: 61%
Max Occupancy Rate: 78% in September
Total Available Listings: 19,569
Rental Sizes: 1 Bedroom: 70%, 2 Bedroom: 20%, 3 Bedroom: 7%, 4 Bedroom: 2%, 5+ Bedroom: 1%
Listings by Rental Type: Private Room: 32%, Entire Home: 68%, Shared Room: 1%
Average Monthly Revenue: $3,051
Max Monthly Revenue: $4,100 in September
Revenue Per Available Room (RevPAR): $131.9
Weekend RevPAR: $244.5
Best Performing Month: September
Market Score: 61

Toronto is the obvious city to start with, as it has the largest vacation rental market in the whole province. The city boasts an impressive 19,569 active Airbnb listings, suggesting a fiercely competitive landscape. A breakdown of these listings reveals that 68% are entire homes. On average, properties in Toronto come with 1.44 bedrooms. While most parts of Toronto are saturated with listings, certain districts offer a respite with comparatively less competition. The market is still on the rise, with a quarterly growth rate of 10%.

Diving deeper into the financial metrics, the Average Daily Rate in Toronto stands at $216.8. However, this rate sees variations, with the peak rate in September being $243. The Occupancy Rate in the city is around 61%, but this can escalate to 78% in September. As for the revenue, hosts can expect an average monthly earning of $3,051, with September promising even higher returns of up to $4,100. The Revenue Per Available Room (RevPAR) is valued at $131.9, but over weekends, this figure jumps to $244.5. September reigns as the most favorable month for Airbnb hosts in Toronto, and the city’s market score is an impressive 61.

Port Colborne

Average Daily Rate (ADR): $373
Max Daily Rate: $404 in August
Occupancy Rate: 50%
Max Occupancy Rate: 70% in August
Total Available Listings: 385
Rental Sizes: 1 Bedroom: 8%, 2 Bedroom: 48%, 3 Bedroom: 38%, 4 Bedroom: 4%, 5+ Bedroom: 2%
Listings by Rental Type: Private Room: 1%, Entire Home: 99%
Average Monthly Revenue: $3,914
Max Monthly Revenue: $7,400 in August
Revenue Per Available Room (RevPAR): $193.8
Weekend RevPAR: $382
Best Performing Month: August
Market Score: 32

Port Colborne emerges as an intriguing prospect for budding entrepreneurs looking to delve into the vacation rental market. This city boasts approximately 385 active listings, a remarkable 99% of which are entire homes. On average, these properties come equipped with 2.44 bedrooms. A significant portion of these rentals are strategically situated along the picturesque shores of Lake Erie.

The Average Daily Rate in Port Colborne stands at an impressive $373, setting it apart from many other Ontario cities. Despite the premium pricing, the Occupancy Rates remain commendable. They hover around 50% for most of the year, but during the peak summer months, especially in August, they can surge to a solid 70%. On the revenue front, properties in this city pull in an average monthly income of $3,914. August emerges as the golden month, with potential earnings skyrocketing to $7,400. The Revenue Per Available Room (RevPAR) is valued at $193.8, but over the weekends, this amount can double to $382. Given these metrics, Port Colborne presents itself as an ideal destination for those considering launching sizeable properties with multiple bedrooms. The city’s market score is 32, indicating a reasonably favorable environment for Airbnb hosts.

Prince Edward County

Average Daily Rate (ADR): $451.2
Max Daily Rate: $475 in August
Occupancy Rate: 53%
Max Occupancy Rate: 78% in August
Total Available Listings: 1,230
Rental Sizes: 1 Bedroom: 25%, 2 Bedroom: 26%, 3 Bedroom: 27%, 4 Bedroom: 14%, 5+ Bedroom: 7%
Listings by Rental Type: Private Room: 8%, Entire Home: 92%
Average Monthly Revenue: $5,629
Max Monthly Revenue: $9,700 in August
Revenue Per Available Room (RevPAR): $232
Weekend RevPAR: $476.1
Best Performing Month: August
Market Score: 41

Prince Edward County is an intriguing destination situated on the shores of Lake Ontario. This area boasts a substantial 1,230 active Airbnb listings, with a dominant 92% of these being entire homes. The average property in this region features about 2.49 bedrooms. One of the unique attributes of Prince Edward County is the even distribution of rentals, ensuring no particular part of the city is overly saturated.

Financially, the Average Daily Rate in Prince Edward County stands at a notable $451.2, reflecting the spacious nature of the properties. Occupancy Rates average around 53%, but there’s a significant uptick during the summer months, with August seeing rates of up to 78%. Hosts can expect an average monthly revenue of $5,629, but this figure can surge to a remarkable $9,700 in peak months like August. With these numbers in mind, Prince Edward County solidifies its reputation as one of Ontario’s prime locations for high-end short-term rentals.

Kingston

Average Daily Rate (ADR): $202.6
Max Daily Rate: $220 in August
Occupancy Rate: 59%
Max Occupancy Rate: 75% in August
Total Available Listings: 448
Rental Sizes: 1 Bedroom: 49%, 2 Bedroom: 26%, 3 Bedroom: 14%, 4 Bedroom: 7%, 5+ Bedroom: 4%
Listings by Rental Type: Private Room: 26%, Entire Home: 74%
Average Monthly Revenue: $2,735
Max Monthly Revenue: $3,900 in August
Revenue Per Available Room (RevPAR): $115.2
Weekend RevPAR: $219
Best Performing Month: August
Market Score: 69

Kingston stands out as a promising location for those considering an Airbnb venture. Nestled along the shores of Lake Ontario, this city witnesses a steady influx of visitors, with a notable surge during the summer months. Currently, there are 448 active Airbnb listings in Kingston, catering to its modest size. Of these, a significant 74% are entire homes, with an average size of around 1.91 bedrooms. As one might expect, many of these properties are conveniently located near the iconic lake.

Financial metrics paint a favorable picture for hosts. The Average Daily Rate in Kingston is $202.6, with minimal seasonal variations. However, the rate does peak to $220 in August. Occupancy Rates oscillate between seasons, ranging from 59% to a high of 75% in August, translating to an average revenue of $2,735 per month for hosts. With the potential to earn as much as $3,900 in August, the Revenue Per Available Room (RevPAR) stands at $115.2, while the Weekend RevPAR reaches $219. Given the city’s market score of 69 and its consistent performance, Kingston presents a viable opportunity for new Airbnb entrepreneurs

Airbnb Management in Kingston, ON

Peterborough

Average Daily Rate (ADR): $461.8
Max Daily Rate: $499 in July
Occupancy Rate: 52%
Max Occupancy Rate: 71% in August
Total Available Listings: 1,148
Rental Sizes: 1 Bedroom: 18%, 2 Bedroom: 19%, 3 Bedroom: 31%, 4 Bedroom: 19%, 5+ Bedroom: 14%
Listings by Rental Type: Private Room: 7%, Entire Home: 93%
Average Monthly Revenue: $5,504
Max Monthly Revenue: $8,500 in August
Revenue Per Available Room (RevPAR): $237.6
Weekend RevPAR: $471
Best Performing Month: August
Market Score: 50

Peterborough stands out as a promising city for those interested in the short-term rental market. It boasts a noteworthy 1,148 active Airbnb listings. A substantial 93% of these listings are entire homes, reflecting the city’s preference for spacious accommodations. Given the distribution of rental sizes, the properties typically have around 2.95 bedrooms. While the market may appear somewhat static, the prevailing conditions suggest ample room for more Airbnb establishments.

Financially, the Average Daily Rate in Peterborough is $461.8, peaking at $499 in July. The city experiences a seasonal demand, yet the pricing remains relatively consistent. Occupancy Rates average around 52%, but there’s a noticeable uptick during the summer, especially in August, with rates reaching 71%. This steady demand translates to an average monthly revenue of $5,504 for hosts. August, in particular, stands out with potential earnings soaring to $8,500. With a Revenue Per Available Room (RevPAR) of $237.6 and a Weekend RevPAR at $471, and a market score of 50, Peterborough offers a favorable environment for Airbnb hosts.

St. Catharines

Average Daily Rate (ADR): $237.3
Max Daily Rate: $269 in September
Occupancy Rate: 53%
Max Occupancy Rate: 76% in August
Total Available Listings: 382
Rental Sizes: 1 Bedroom: 45%, 2 Bedroom: 24%, 3 Bedroom: 17%, 4 Bedroom: 8%, 5+ Bedroom: 5%
Listings by Rental Type: Private Room: 24%, Entire Home: 76%
Average Monthly Revenue: $2,959
Max Monthly Revenue: $5,000 (August)
Revenue Per Available Room (RevPAR): $121.1
Weekend RevPAR: $242
Best Performing Month: August
Market Score: 39

St. Catharines, nestled right next to the renowned Niagara Falls, may not be the top destination for many travelers, but its competitive landscape offers a silver lining for potential hosts. Currently, the city boasts 382 active Airbnb listings, evenly spread across its expanse. This makes St. Catharines an appealing spot for budding entrepreneurs seeking a serene locale to kickstart their Airbnb venture. On average, accommodations here feature around 2.01 bedrooms, with a significant 76% being entire homes.

Financially, St. Catharines paints a promising picture for hosts. The Average Daily Rate is $237.3, with a peak in September at $269. The city witnesses a fairly consistent demand, with Occupancy Rates averaging 53% but surging to 76% during the summer months, particularly August. This steady influx translates to an average monthly revenue of $2,959 for hosts. In the peak month of August, there’s potential for earnings to touch $5,000. With a Revenue Per Available Room (RevPAR) of $121.1 and a Weekend RevPAR of $242, combined with a market score of 39, St. Catharines offers a favorable backdrop for Airbnb entrepreneurs.

Airbnb Management in St. Catharines, ON

Kawartha Lakes

Average Daily Rate (ADR): $490.1
Max Daily Rate: $525 in July
Occupancy Rate: 48%
Max Occupancy Rate: 67% in August
Total Available Listings: 972
Rental Sizes: 1 Bedroom: 12%, 2 Bedroom: 15%, 3 Bedroom: 34%, 4 Bedroom: 21%, 5+ Bedroom: 17%
Listings by Rental Type: Private Room: 5%, Entire Home: 95%
Average Monthly Revenue: $5,545
Max Monthly Revenue: $9,100 in August
Revenue Per Available Room (RevPAR): $231.8
Weekend RevPAR: $505
Best Performing Month: July
Market Score: 40

Kawartha Lakes boasts a burgeoning rental market with 972 properties predominantly nestled around the serene local lakes. Given its reputation as a sought-after family vacation spot, entire homes dominate the listings, accounting for a staggering 95%. These accommodations typically feature an average of 3.13 bedrooms and are especially designed to cater to larger groups or families. Many of these listings are expansive cottages, which experience a surge in demand during the summer months.

The Average Daily Rate in Kawartha Lakes stands at $490.1, with a peak rate of $525 witnessed in July. Occupancy Rates hover around 48% on average throughout the year, with a significant rise to 67% in August due to the seasonal influx of visitors. This consistent demand translates to an impressive average monthly revenue of $5,545 for hosts. In the peak month of August, potential earnings can escalate to as much as $9,100. With a Revenue Per Available Room (RevPAR) of $231.8 and a Weekend RevPAR of $505, coupled with a market score of 40, Kawartha Lakes undeniably offers a lucrative proposition for potential Airbnb hosts.

Norfolk County

Average Daily Rate (ADR): $319.6
Max Daily Rate: $338 in July
Occupancy Rate: 46%
Max Occupancy Rate: 65% in July
Total Available Listings: 254
Rental Sizes: 1 Bedroom: 29%, 2 Bedroom: 27%, 3 Bedroom: 29%, 4 Bedroom: 10%, 5+ Bedroom: 5%
Listings by Rental Type: Private Room: 12%, Entire Home: 88%
Average Monthly Revenue: $3,394
Max Monthly Revenue: $5,700 in July
Revenue Per Available Room (RevPAR): $144.9
Weekend RevPAR: $306
Best Performing Month: July
Market Score: 36

Norfolk County, nestled on the shores of Lake Erie, offers a more intimate short-term rental market, with 254 active listings. A significant 88% of these listings are entire homes, making it a preferred choice for travelers seeking whole property accommodations. The average property here features approximately 2.35 bedrooms, catering to both smaller and larger groups of guests. Although many properties boast direct access to Lake Erie, there are also sought-after rentals in other parts of the city, underlining the diverse appeal of Norfolk County.

The Average Daily Rate in this picturesque locale stands at $319.6, with a notable spike in July, reaching $338. Throughout the year, the Occupancy Rates average 46%, but the summer allure of Norfolk County pushes this figure up to 65% in July. This heightened demand translates to an average monthly revenue of $3,394 for hosts. However, the month of July can see earnings of up to $5,700, highlighting the seasonal nature of this market. With a Revenue Per Available Room (RevPAR) of $144.9 and a Weekend RevPAR of $306, combined with a market score of 36, Norfolk County emerges as an enticing destination for Airbnb entrepreneurs looking to avoid the hustle and bustle of larger cities.

Niagara Falls

Average Daily Rate (ADR): $266
Max Daily Rate: $312 in July
Occupancy Rate: 49%
Max Occupancy Rate: 70% in July
Total Available Listings: 1,507
Rental Sizes: 1 Bedroom: 35%, 2 Bedroom: 23%, 3 Bedroom: 22%, 4 Bedroom: 12%, 5+ Bedroom: 7%
Listings by Rental Type: Private Room: 21%, Entire Home: 79%
Average Monthly Revenue: $3,222
Max Monthly Revenue: $5,900 in July
Revenue Per Available Room (RevPAR): $128.6
Weekend RevPAR: $297
Best Performing Month: July
Market Score: 35

Niagara Falls continues to be a promising city for Airbnb entrepreneurs, given its iconic status as a tourist destination. The city boasts 1,507 active listings, with a substantial 79% being entire homes. These properties typically have about 2.3 bedrooms, catering predominantly to families and larger groups given the city’s appeal for family tourism. Larger rentals are a common sight here, in line with the demand from family vacationers.

In terms of pricing, the Average Daily Rate (ADR) stands at $266, with a peak in July at $312. Occupancy Rates hover around 49% on average, but the allure of summer sees this rate spike to 70% in July. Such seasonal demand translates to an average monthly revenue of $3,222 for hosts. However, the influx of visitors in July can push potential earnings to a noteworthy $5,900. With a Revenue Per Available Room (RevPAR) of $128.6 and a Weekend RevPAR of $297, coupled with a market score of 35, Niagara Falls remains an appealing location for Airbnb hosts. The vicinity around the city center, particularly the areas flanking the Niagara River, is a hotspot for listings, drawing tourists seeking proximity to the majestic waterfalls.

Airbnb Management in Niagara Falls