Investing in Secondary and Tertiary Markets in Canada: What You Need to Know
- Wayne Hillier
- Apr 25
- 3 min read
Updated: Apr 25
Real estate investors often throw around terms like “secondary market” and “tertiary market” — but how many of us are actually using them correctly?
On this morning’s episode of The Real Estate Investing Morning Show, we broke down what these terms really mean in a Canadian investing context, and why understanding the difference is crucial when choosing where to buy your next rental property.
Let’s take a closer look.
What Is a Secondary Market?
In real estate, a secondary market refers to a mid-sized city with strong economic fundamentals and a growing population. These markets typically have a population between 100,000 to 1 million people, and they offer a balance between affordability and long-term growth.
Examples of Secondary Markets in Canada:
Edmonton, Alberta
Halifax, Nova Scotia
London, Ontario
Saskatoon, Saskatchewan
Regina, Saskatchewan
These markets often benefit from strong job sectors, landlord-friendly legislation, and a steady influx of residents moving away from high-priced primary cities like Toronto or Vancouver.
In our business, we consider Edmonton a great example of a secondary market: it has a diverse economy, a strong tenant base, and favorable laws for landlords. These factors combine to create solid long-term opportunities for both cash flow and appreciation.
What Is a Tertiary Market?
Tertiary markets are smaller cities or towns, typically with a population between 10,000 and 100,000 people. They often serve as regional hubs or satellite towns for larger nearby cities.
Examples of Tertiary Markets in Canada:
Red Deer, Alberta
Lethbridge, Alberta
Chatham, Ontario
Timmins, Ontario
Swift Current, Saskatchewan
These towns may offer very attractive purchase prices and excellent cash flow potential, but they also come with additional risk. It’s common for tertiary markets to rely heavily on a single employer or industry (such as mining, oil & gas, or agriculture), which means if that industry slows down, the entire local economy can be impacted.
We also talked about how tenant quality, vacancy rates, and resale liquidity can be challenges in smaller markets. That’s not to say they’re bad investments — but they do require more caution, planning, and often a stronger reserve fund.
Should You Invest in Secondary or Tertiary Markets?
It depends on your risk profile and goals. Here's a quick comparison:
Factor | Secondary Market | Tertiary Market |
Population | 100K – 1M | 10K – 100K |
Growth Potential | Balanced | Slower / Cyclical |
Cash Flow | Moderate | Higher (but riskier) |
Liquidity (Resale/Refi) | Easier | Harder |
Risk Level | Lower | Higher |
Tenant Pool | Stable | Can be limited |
As we shared on the show, the best opportunities in tertiary markets often go to investors who know the town inside and out — people who grew up there, or who are willing to spend time getting to know it deeply before buying.
If you're an out-of-town investor chasing cash flow, be extra diligent before pulling the trigger in a tertiary market.
Want the Full Breakdown?
We covered this entire topic in detail — including examples, risk mitigation tips, and our personal take on which markets we like best — in today’s episode of The Real Estate Investing Morning Show.
🎧 Listen to the full episode here:
Final Thoughts
Whether you’re investing in Edmonton or exploring smaller towns across the Prairies or Atlantic Canada, understanding market tiers is key. The more informed you are about what makes a market sustainable — and how to spot warning signs — the better your long-term results will be.
If you want help analyzing deals, choosing the right city, or building a portfolio that performs, check out our upcoming events, courses and mentorship program at www.reimasters.ca.
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