Live in Windsor, work in Detroit
With the Canadian dollar dropping in value, the exchange rate between the Canadian and American dollar is looking more and more favourable for the Canadians that live in Windsor, Ontario but are employed in Detroit, Michigan.
I started to think about the future of my hometown (Windsor) and what the potential outcomes could be if the exchange rate continues on its current path. Windsor could see significant population growth, and listed below are a few economic incentives I found that support this claim.
1. Detroit is growing in tech startups
Startups are quickly moving to Detroit — partly because it already has the infrastructure to support an influx of companies, but also because the leasing rates are significantly less than the national average.
A quick search on Craigslist turns up more than 2,000 listings for commercial office space in Detroit. Reported exactly a year ago,
Detroit’s vacancy rate in the fourth quarter was at 20.9% and its asking rent was $19.95 per square foot, according to data from real estate firm Newmark Grubb Knight Frank.
In contrast, the average price of office space in Silicon Valley rings in at $65 per square foot.
2. Windsor’s affordable living
Windsor is considered to be one of the most affordable cities in which to purchase your dream home. The average cost of a house in Windsor is $200,000, compared to $600,000 for a similar home in Toronto.
More real estate is becoming available too, with twice the amount of houses being built this December than last year, which is expected to double again next year.
Consumers are beginning to seeing the potential: The average sale price of a home in the Windsor area went up five per cent in 2015 — double the national average.
3. Tipping point: the exchange rate
On average, a Software Engineer in Canada makes $67,000 CAD and $79,000 USD in the U.S. What was once not a significant difference became one with the current exchange rate: That U.S. paycheque will currently take you in $114,000 CAD.
Earlier this week, one analyst predicted that the loonie will fall to 59 cents U.S. by the end of this year, which equates to $1 USD = $1.69 CAD. That translates into your $79,000 USD salary earning you $133,000 CAD!
Just something to consider… and here’s to hoping!
