Top 10 Ontario Municipalities with High Growth Potential (Heading into 2026)

Ontario’s landscape is dotted with rising communities that are poised for a surge of growth as we approach 2026. Unlike the usual high-growth hubs, these municipalities are emerging as the next hot spots. They show fresh signs of momentum in population forecasts, new infrastructure projects, rezoning and planning activity, housing trends, and supportive policy changes. Below we explore ten such municipalities, each backed by data and recent developments, that indicate strong growth potential in the near future.

We focus on places where growth is just beginning to intensify – where a new highway, transit line, major employer, or planning vision is sparking development fever. These towns and cities are crafting updated Official Plans, seeing increased council agenda activity on development, and catching the eye of investors and homebuyers alike. Read on for a detailed look at each, with evidence of why they’re on the cusp of a boom.

1. St. Thomas – EV Battery Boomtown in the Making

A rendering of the Volkswagen EV battery plant under construction in St. Thomas – a $7 billion investment catalyzing growth in this Ontario city (Courtesy Volkswagen Canada)renx.ca

St. Thomas has catapulted onto the growth radar thanks to Volkswagen’s decision to build its first overseas EV battery “gigafactory” here. Announced in 2023, the massive plant is a $7 billion investment that will be North America’s largest EV battery facility and directly employ about 3,000 workers, with as many as 30,000 indirect jobs expected across the region letstalkcentralelgin.ca. This historic project, slated to open in 2027, has industrial players and developers flocking to the area. Since the VW announcement, demand for land in St. Thomas has skyrocketed – raw farmland values have more than doubled as investors anticipate conversions to industrial and residential uses to meet incoming demand renx.carenx.ca.

Local planning is in high gear. The city and adjacent Central Elgin are fast-tracking new housing and infrastructure to accommodate a sudden influx of workers. For example, a new 168-hectare mixed-use community is planned on former hospital lands, with 3,500 homes that could double Central Elgin’s population letstalkcentralelgin.ca. Subdivision builders are already breaking ground on new neighborhoods renx.ca. St. Thomas was growing steadily even before VW, but the battery plant is a seismic catalyst expected to accelerate population and housing growth over the next decade cdnsm5-hosted.civiclive.comcdnsm5-hosted.civiclive.com. From upgraded roads to workforce training programs, the groundwork is being laid for St. Thomas to transform into an EV industry hub. With housing starts climbing and land values still far cheaper than in Toronto or even nearby London, St. Thomas offers both affordability and opportunity – a combination that signals tremendous growth ahead renx.carenx.ca.

2. Clarington – Transit-Fueled Growth East of Toronto

Clarington, a municipality in Durham Region east of Toronto, is showing all the hallmarks of an upcoming boomtown. It has been “one of the fastest growing municipalities in the GTA,” according to its latest Official Plan review clarington.net, and several major catalysts are now converging to propel its growth further. Chief among them is the long-awaited extension of GO Transit rail service to Bowmanville (Clarington’s largest community). The province is investing $730 million to bring two-way, all-day GO trains through Oshawa into new stations at Courtice and Bowmanville durham.cafacebook.com. In anticipation, Clarington is planning transit-oriented communities around those future stations. These mixed-use urban centres could add on the order of tens of thousands of new residents in the coming decades – local plans envision over 40,000 new residents clustered in walkable hubs by 2051 facebook.cominsauga.com.

Infrastructure and planning initiatives are paving the way. The municipality recently unlocked new industrial lands with road extensions in Bowmanville and serviced employment areas in Courtice weblink.clarington.netweblink.clarington.net. Downtown Bowmanville is undergoing revitalization, and a long-promised regional hospital expansion is in the works to support the growing population weblink.clarington.net. Clarington’s 2024–2027 Strategic Plan emphasizes leveraging the GO transit investment to build “thriving neighbourhoods, jobs and growth,” noting the GO train extension will result in new housing and employment hubs at the station areas clarington.netweblink.clarington.net. Development applications are already flowing in – for example, a proposal for 1,755 new homes in Newcastle is under review pub-clarington.escribemeetings.com. With its blend of urbanizing centers and rural charm, plus relatively affordable real estate compared to Toronto, Clarington is poised to absorb spillover growth. All signals – from major transit infrastructure to an updated Official Plan – point to Clarington emerging as a key growth zone on the eastern edge of the GTA.

3. Innisfil – Smart “Orbit” City and Lakeside Growth

Innisfil, a town on Lake Simcoe south of Barrie, is aggressively positioning itself for growth with a bold futuristic vision known as “The Orbit.” This plan will transform Innisfil from a cottage-country bedroom community into a high-tech, transit-oriented city built around a new GO Train station. Innisfil has secured a commitment to build a GO station at 6th Line as the anchor of the Orbit development blog.databid.comcanada.constructconnect.com. The first phase alone could add 7,000 housing units and 20,000 people, and the town even requested a Minister’s Zoning Order to fast-track it blog.databid.com. The private developer (Cortel Group) will front the cost of the station, underscoring the confidence in this growth. Innisfil officials boast that “The Orbit will be a city of the future,” blending small-town charm with smart-city tech and sustainable design blog.databid.com. The full master plan envisions a city of up to 150,000 residents over 20+ years blog.databid.com – an astonishing leap from the town’s current ~43,000 population.

Early signals of momentum are evident. Innisfil’s population grew 18.5% from 2016 to 2021 and is projected to double to ~85,000 by 2051 www12.statcan.gc.cawww12.statcan.gc.ca. The town is updating its Official Plan to manage this expected growth, planning new mixed-use nodes and higher densities around the GO station land-investmentgroup.cagetinvolvedinnisfil.ca. Infrastructure investments are keeping pace – the town received funding to expand water/sewer capacity and pledged to build 6,300 homes in the next 10 years facebook.comfacebook.com. Real estate interest is rising thanks to relatively affordable prices and the lakefront lifestyle. Innisfil’s council notes they are “light years ahead” in planning compared to peers, aiming to set a trend for sustainable development blog.databid.com. If The Orbit comes to fruition, Innisfil will evolve from a quiet township into a major urban centre. The combination of provincial growth allocations, an innovative master plan, and transit connectivity gives Innisfil one of the strongest growth potentials in Ontario.

4. Bradford West Gwillimbury – Highways and Housing on the Horizon

Bradford West Gwillimbury (BWG) sits at the northern edge of the GTA and is bracing for an era of rapid growth, fueled largely by improved transportation links. The marquee project is the Bradford Bypass, a new 16-km freeway that will connect Highways 400 and 404 and significantly cut travel times across Simcoe and York Regions. After decades on the drawing board, the Bradford Bypass is finally moving forward – engineering contracts were awarded in 2024 and preparatory construction (like bridge works and utility relocations) is underway on-sitemag.comon-sitemag.com. Ontario’s Transportation Minister calls it a “critical freeway” to relieve gridlock and “drive economic growth for decades to come,” noting it will create thousands of jobs during construction and unlock new land for development on-sitemag.comon-sitemag.com. The bypass is vital for growing communities in the area, providing better connections to jobs and housing and acting as a spine for future suburban expansion on-sitemag.com.

BWG’s own growth forecasts reflect this optimism. The town’s population is projected to grow from about 35,000 in 2021 to 57,300 by 2031 and 83,500 by 2051, essentially doubling over 30 years townofbwg.com. To prepare, Bradford is updating its Official Plan and recently completed a Growth Management Strategy allocating where all those new residents and jobs will go. Greenfield areas west of town and around the future highway interchanges are being earmarked for new housing subdivisions and industrial parks. Indeed, the town has already approved large developments like the Bond Head expansion, adding thousands of homes in coming years neptis.org. Housing demand is strong – Bradford’s mix of small-town feel and new amenities (like a modern leisure centre and library) have attracted many young families priced out of York Region. Real estate values jumped in recent years, though they remain below GTA averages. With the Bradford Bypass now a reality, BWG is poised to convert from a commuter town into a strategic growth centre. The highway will cement Bradford’s role as a regional hub, and the town’s plans show it is embracing that future by zoning land and investing in infrastructure to accommodate a coming population boom.

5. Belleville – Bay of Quinte’s Emerging Boomtown

Belleville, a city on the Bay of Quinte in eastern Ontario, has recently surged into the spotlight as an unexpected growth leader. It was ranked the third fastest-growing city in Canada for 2024 by U-Haul’s migration index, which reported 57% more one-way moves into Belleville than out of it brightontoday.cabrightontoday.ca. U-Haul credited Belleville’s affordability, job opportunities, and quality of life for attracting so many newcomers brightontoday.ca. This influx marks a shift – long known as a quiet regional center, Belleville is now seeing accelerating housing demand and development. From 2016 to 2021, the metro area grew nearly 10%, and that pace has only quickened post-pandemic as remote workers and retirees seek out smaller cities. Real estate prices here jumped considerably in the past few years, though they remain lower than Ottawa or Toronto, making Belleville a value destination.

Several factors underline Belleville’s growth potential. The city has invested heavily in infrastructure and economic development – notably landing a massive Amazon distribution centre in 2019 that created 1,000+ jobs. The broader Quinte region is branding itself a logistics and manufacturing hub given its strategic location on Highway 401 and rail lines between Toronto and Montreal. Belleville’s housing construction is booming; the city shattered its housing targets in 2023/24 by starting 250 new homes (97% of its annual goal) news.ontario.canews.ontario.ca. To manage the expansion, Belleville launched a comprehensive Official Plan Review in 2025. This update will align city policies with new provincial housing laws and “address emerging housing needs and demographic changes” getinvolved.belleville.cagetinvolved.belleville.ca. Plans include promoting intensification downtown, diversifying housing types, and expanding mixed-use nodes getinvolved.belleville.cagetinvolved.belleville.ca. All this points to a city on the rise. With a historic waterfront, a growing regional hospital and college, and now a steady stream of new residents from urban centers, Belleville is transitioning into a vibrant mid-size city. Its combination of job growth, infrastructure investment, and proactive planning makes it one of Ontario’s top emerging municipalities to watch.

6. Collingwood – Resort Town Turning Year-Round Growth Hub

Collingwood, nestled on Georgian Bay near Blue Mountain, is evolving from a seasonal resort town into a thriving year-round community – and its growth trajectory is strong. Between 2016 and 2021, Collingwood’s population jumped ~20%, and the province’s growth plan identifies it as one of Simcoe County’s primary settlement areas to absorb future growth simcoehomebuilders.comsimcoehomebuilders.com. In fact, Ontario’s forecasts (excluding Barrie/Orillia) pinpoint Collingwood – along with Alliston, Bradford, etc. – as poised to handle a large share of Simcoe’s influx by 2051 simcoehomebuilders.com. The town’s new Official Plan (adopted in 2023) plans for a population increase from about 25,500 in 2021 to roughly 42,700 by 2051 imcoe.casimcoe.ca, reflecting the expectation of continued rapid growth.

What’s driving Collingwood’s appeal? Lifestyle and location. It offers small-town charm, skiing and waterfront recreation, and is within 90 minutes of Toronto – a potent combo for remote workers, retirees, and families alike. The pandemic-era shift to remote work saw many GTA residents relocate to Collingwood for more space and natural amenities. This demand has pushed real estate prices to new highs and spurred a condo building boom downtown. The town has also addressed infrastructure bottlenecks that once constrained growth: notably, it’s undertaking a major water treatment plant expansion to lift a temporary moratorium on new development onthebaymagazine.comengage.collingwood.ca. By 2025, phase one will nearly double water capacity (from 32,000 to 59,000 m³/day) to support all the new housing projects in the pipeline engage.collingwood.ca. Collingwood’s economy is diversifying beyond tourism too – boutique manufacturing and tech firms have sprung up, attracted by the lifestyle offerings for employees. With its Official Plan targeting intensification, the town is encouraging mid-rise developments and mixed-use growth in its core while protecting natural areas. Collingwood today is “managing and directing land use to 2051” as a complete community engage.collingwood.ca. All indicators – from population projections to infrastructure investments – show Collingwood’s momentum as an emerging growth hub in central Ontario.

7. Woodstock – Manufacturing Base with 401 Advantage

Woodstock, in Oxford County, has quietly become one of Ontario’s fastest-growing small cities, leveraging its strategic location at the intersection of Highways 401 and 403 and its strong industrial base. Home to Toyota’s RAV4 assembly plant and numerous factories, Woodstock has attracted jobs and residents at a brisk pace. The city’s population grew about 13% from 2016 to 2021 (to ~46,000), and growth is set to continue. Oxford County projections show Woodstock’s population rising from 47,965 in 2021 to ~55,800 by 2031 and 63,600 by 2041, a nearly 33% increase over two decades speakup.oxfordcounty.ca. In the nearer term, Woodstock is expected to surpass 51,000 residents by 2026 speakup.oxfordcounty.ca – remarkable for a city its size. This growth is fueled by both economic and lifestyle factors.

On the economic side, Woodstock has seen ongoing investment in manufacturing and logistics. Toyota’s operations remain a linchpin (with recent retooling to add hybrid RAV4 production), and the city has a large Sysco distribution center, auto parts manufacturers, and agri-food processors taking advantage of highway access. Unemployment is low and new employers continue to set up in its business parks. Such job opportunities have drawn people from more expensive regions. On the housing side, Woodstock has become a popular relocation destination for GTA and Kitchener-Waterloo outflow, as buyers discover they can get far more house for their money. The average home price is a fraction of prices in the GTA, yet amenities are ample and London/Kitchener are under an hour away. The city has been proactively planning – it updated its Official Plan through the County and invested in expanding water, sewer, and recreation facilities to support growth. For example, a new indoor sports complex and transit system improvements are in the works. With its combination of logistics connectivity, available land, and supportive local government, Woodstock’s growth spurt is only gathering steam. It stands out in southwestern Ontario as a municipality with untapped growth potential now being realized.

8. Carleton Place – Fastest-Growing Ottawa Commuter Town

Carleton Place, a town just west of Ottawa, has earned the title of Canada’s fastest-growing town for multiple years running ottawa.citynews.ca. From 2016 through 2021, it led the nation’s small towns in growth rate, including a 3.7% jump in 2020–2021 alone ottawa.citynews.ca. What was once a sleepy mill town of under 10,000 people in 2000 has swelled to over 12,500, and growth is accelerating thanks to its prime spot as an Ottawa commuter exurb. The 4-lane expansion of Highway 7 means Carleton Place is only a 20–30 minute drive to Ottawa’s west end, making it highly attractive for families seeking more affordable housing outside the city. The pandemic-fueled remote work trend poured gasoline on this demand – as the mayor noted, many newcomers choose Carleton Place for its small-town amenities plus easy access to Ottawa for work and entertainment ottawa.citynews.ca.

Infrastructure and planning are struggling to keep up with the rapid growth. Lanark County projects Carleton Place’s population will nearly double within 20 years, reaching roughly 21,000 by 2039 ottawa.citynews.ca. To manage this, the town has prioritized expanding services: a major wastewater treatment plant expansion is underway (backed by provincial funds) to add capacity for over 1,600 new homes johnjordanmpp.ca. Dozens of subdivisions have been approved or are under construction, adding everything from single-family homes to new rental apartments. Carleton Place’s downtown has also been revitalizing, with trendy shops and restaurants moving into historic buildings, increasing the town’s appeal. The mayor cites the “reliable high-speed internet” and other modern infrastructure as enabling many to work from home here ottawa.citynews.ca. The challenge ahead is balancing growth with preserving community character. Town leaders talk about limiting building heights and maintaining parks/open space even as they welcome development ottawa.citynews.ca. All signs indicate Carleton Place will continue its hot streak – it has location, affordability, and lifestyle on its side, and remains one of the top destinations for new residents in Ontario. For anyone watching emerging markets, this once-overlooked town is now a bellwether of exurban growth.

9. Welland – Reinvented Canal City on the Rise

Welland, in the Niagara Region, is experiencing a renaissance that positions it as a major growth centre in the years ahead. Long overshadowed by Niagara Falls and St. Catharines, Welland has recently been one of southern Ontario’s fastest-growing and most innovative cities businessinfocusmagazine.com. The city’s current population of about 65,000 is projected to nearly double to 103,000 by 2041 businessinfocusmagazine.com – a staggering growth outlook that outpaces many better-known cities. These projections (from Niagara Region’s master plan) highlight Welland as a focal point for growth in Niagara, thanks to several key factors falling into place.

First, the economy in Welland has diversified and strengthened. The city landed a GE manufacturing plant and an Amazon fulfillment centre in recent years, bringing jobs and confidence. Proximity to the U.S. border and available industrial land have been a draw for logistics and advanced manufacturing firms. Welland also benefits from Niagara’s two post-secondary campuses: Niagara College’s main campus is in town, fueling a skilled workforce and demand for housing businessinfocusmagazine.com. Second, affordable housing and quality of life are pulling new residents from the GTA and Hamilton. Welland offers substantially cheaper home prices while being within an hour of the Buffalo airport and 90 minutes of Toronto. The city capitalizes on its recreational assets – the Welland Canal and recreational waterway – to brand itself as an active, family-friendly community. Investments like the Welland International Flatwater Centre (for rowing, kayaking, etc.) and new sports complexes have enhanced its appeal businessinfocusmagazine.com.

City Hall is proactively managing the growth. Welland’s council has been incentivizing development, at one point even seeking a $40M regional fund to attract builders thepointer.com. The city consistently exceeds provincial housing targets – in 2024 it broke ground on 408 new homes (114% of its goal) welland.ca. Infrastructure upgrades are in progress, including improvements to transit and active transportation to make the city less car-dependent businessinfocusmagazine.com. The downtown and canal banks are also seeing revitalization with new mixed-use projects. In sum, Welland’s momentum is undeniable: it combines Niagara’s strategic location, available land, and a surge of new energy from both public and private investment. As Niagara Region grows (the region is planning for 610,000 people by 2041), Welland is clearly emerging as a primary node of expansion. Expect this “Rose City” to bloom with development heading into 2026 and beyond.

10. Caledon – From Farmland to Future City in the GTA

Caledon, a largely rural municipality in Peel Region northwest of Toronto, is on the cusp of explosive growth as it transitions into the next major suburban frontier. With Brampton and Mississauga nearly built-out, attention has turned to Caledon’s vast tracts of developable land. The numbers tell the story: Caledon is “preparing to become a city of 300,000 residents and 125,000 jobs by 2051,” up from just ~80,000 people today caledon.ca. That phenomenal growth target, set by the recent Future Caledon Official Plan, would make Caledon one of Ontario’s fastest-growing communities over the next 25 years caledon.ca. The province has effectively green-lit urban expansion here, approving Caledon’s new Official Plan in late 2025 after intensive local input caledon.cacaledon.ca. This plan opens the door for significant new housing development while aiming to preserve environmental features and villages – a challenging balance.

Key drivers of Caledon’s growth include the proposed Highway 413, which would cut east-west through southern Caledon, linking highways 400 and 401 and unlocking employment lands. Although controversial, if built it would spur extensive residential and industrial projects along its corridor. Even before that, Caledon has several huge planned communities: Mayfield West (an ongoing multi-phase suburb) and a future expansion of Bolton are set to add tens of thousands of homes. The town is also benefiting from spillover growth from York Region (to which its eastern half is adjacent). Already, we see rising development activity – planning applications for new subdivisions, retail centers, and even transit-oriented nodes (GO Transit is considering a Bolton GO station). Caledon’s council and staff have been structured into a “concierge” mode to handle the influx of development proposals efficiently investclarington.ca.

However, growth is being phased. The Official Plan rollout is in stages: Phase 1 established the 2051 land use vision and settlement areas; Phase 2 (starting 2026) will address specifics like new secondary plans for “emerging growth areas” and transit station lands caledon.ca. This means the groundwork is being laid now for new neighborhoods that will rise in the 2030s. Caledon’s unique mix of rural charm and proximity to Toronto will continue to draw interest – it’s already known for its trails, farms, and villages, which the plan seeks to integrate with new urban development. In short, Caledon is Ontario’s next big suburban frontier. With provincial backing, infrastructure on the horizon, and an Official Plan in hand, Caledon’s transformation from countryside to city is accelerating, making it a top municipality to watch for emerging growth.

Conclusion

These ten Ontario municipalities – from small towns on the urban fringe to regional hubs reinventing themselves – all exhibit strong emerging growth signals heading into 2026. While each has a unique story, common threads tie them together: strategic infrastructure investments (highways, transit, factories) are acting as catalysts, local governments are updating plans and policies to enable development, and relatively affordable real estate is attracting waves of new residents. Importantly, these areas are on the verge – they’re not yet as developed or well-known for growth as places like Milton, Waterloo or Barrie, but all evidence suggests they are next in line.

For homebuyers, businesses, and investors looking for opportunity, these municipalities offer fertile ground. Council agendas filled with rezoning applications, population forecasts showing above-average growth, and supportive provincial policies (e.g. streamlined approvals, growth targets) indicate that momentum is building now. Many of these communities are leveraging their strengths – be it a lakefront setting, logistical location, or quality of life – to carve out a new identity as growth centres. As Ontario continues to grow overall (fueled by high immigration and economic expansion), these emerging hotspots are poised to absorb an increasing share of that growth.

In sum, the next wave of Ontario’s expansion will not be confined to the usual suspects. Places like St. Thomas and Innisfil, Belleville and Welland, are stepping onto the main stage. Keeping a close eye on these rising stars could yield insights into Ontario’s economic and urban future. Expect big changes in these communities in the coming few years – the groundwork is already laid, and the growth rockets are ready for liftoff.

Sources:

• St. Thomas and area planning for Volkswagen EV battery plant (3,000 direct jobs, 30,000 indirect)letstalkcentralelgin.carenx.ca; land values and housing starts risingrenx.carenx.ca.

• Clarington’s rapid growth and GO train extension plans (two new stations at Courtice/Bowmanville)clarington.netweblink.clarington.net; vision for 40k+ new residents by 2051 in transit-area communitiesfacebook.com.

• Innisfil’s Orbit plan (7,000 homes/20k people in Phase 1) and MZO requestblog.databid.com; long-term Orbit city up to 150k residents with new GO station as anchorblog.databid.comcanada.constructconnect.com.

• Bradford West Gwillimbury doubling population by 2051townofbwg.com; Bradford Bypass highway approved to “drive economic growth for decades”on-sitemag.comon-sitemag.com.

• Belleville’s influx of newcomers (U-Haul index #3 in Canada) due to affordability and jobsbrightontoday.cabrightontoday.ca; City updating Official Plan to accommodate housing demandgetinvolved.belleville.cagetinvolved.belleville.ca.

• Collingwood identified as key growth area in Simcoe (to grow from ~25k to ~42k by 2051)simcoehomebuilders.com; proactive OP update and infrastructure expansion (e.g. water plant) to support developmentengage.collingwood.caengage.collingwood.ca.

• Woodstock’s growth projections (~55k by 2031) leveraging 401/403 and industrial basespeakup.oxfordcounty.ca; Toyota plant and logistics jobs underpin steady population gains.

• Carleton Place – fastest growing CA in Canada four years straightottawa.citynews.ca; projected to nearly double by 2039, driven by remote work and Ottawa proximityottawa.citynews.caottawa.citynews.ca.

• Welland’s resurgence as a growth hub – population ~65k now to 103k by 2041businessinfocusmagazine.com; one of S. Ontario’s fastest-growing cities with new industry and housing starts exceeding targetsbusinessinfocusmagazine.comwelland.ca.

• Caledon’s Future Official Plan approved (to 300k by 2051)caledon.ca; new growth areas opened as Highway 413 and other developments loom, making it a top future boom area.