When we hear news about road expansions or massive infrastructure projects—even in neighbouring regions like Illinois—we might not think they impact our wallets directly. But projects like the widening of Route 31 in McHenry aren’t just local concerns. They signal ripple effects in housing prices, regional development, and, ultimately, mortgage trends here at home in Canada.
McHenry’s decision to spend millions over several years to help fund the Route 31 expansion may not seem relevant to a homeowner in, say, Kitchener or Calgary. But the logic behind it carries a valuable lesson for Canadians: infrastructure drives value—especially in real estate. If you’re keeping an eye on your home equity or considering a refinance, it’s worth understanding how public infrastructure planning can foreshadow changes in the housing market.
Why Infrastructure Drives Home Prices
It’s no secret that improved transportation leads to increased property demand. Better roads reduce commute times, increase accessibility to amenities, and bring entire neighbourhoods within reach. That’s why municipalities—whether it’s McHenry or Mississauga—commit huge budgets to similar projects, often justified by the long-term uptick in housing activity.
Here in Canada, we’ve seen this play out with the expansion of the GO train network in Ontario and new LRT lines in several cities. Properties near new transit hubs often see significant price jumps before the projects are even completed. According to a recent report by CREA, home prices in regions with major transportation investments rose by as much as 12% compared to surrounding areas. That’s equity growth born from simple geography meeting infrastructure planning.
For Canadian homeowners, this underscores the strategic importance of location—not just current convenience, but future connectivity. As cities grow and roads improve, today’s less-desirable neighbourhoods often become tomorrow’s hot markets. In developments like McHenry’s Route 31 plan, we see clear examples of how governments lay the groundwork that homebuyers respond to.
The Mortgage Connection: Buying Into Growth
There’s a direct line between regional infrastructure improvements and mortgage trends. As home values increase due to better accessibility and amenities, local homeowners start to gain equity. That can fuel renovations, second property purchases, or strategic refinancing.
Refinancing your mortgage may unlock value you didn’t even know you had. With property values on the rise, many Canadians are exploring refinancing to pay down higher-interest debt or fund home improvements. Similar to how McHenry is spreading its road investment across four years, you can spread mortgage solutions across longer terms for predictable budgeting.
Also consider how higher property values impact your borrowing potential. Infrastructure-led growth means you may qualify for larger lines of credit such as a HELOC. With more equity, you have more financial flexibility—whether that’s helping a child with a down payment or investing in another property.
What Homeowners Should Watch For
Big announcements like McHenry’s road widening will continue to pop up across North America, especially post-pandemic as cities try to modernize. Canadian homeowners should keep an eye on similar local plans. Check if there’s a new school, highway, or commercial district coming to your area—it might just bring a housing boom with it.
You can take a proactive approach by discussing these possibilities with your mortgage broker. If your neighbourhood feels like it’s on the verge of transformation, your home could gain value faster than expected. That’s an opportunity to reconsider your mortgage strategy, whether that’s switching to a fixed rate for long-term stability or using a mortgage calculator to model future scenarios.
Even reverse mortgages can play a strategic role for homeowners over 55, tapping into the potential growth created by emerging development. If that’s of interest, learn more about your reverse mortgage options here.
And while the Route 31 expansion might be hundreds of kilometres away, it reinforces the broader picture: when local governments invest in infrastructure, homes get new value—and homeowners get new options.
Final Thoughts: Your Mortgage Moves with the Map
Infrastructure isn’t just about roads and bridges; it’s about value creation. For municipalities, that means growing their tax base. For homeowners, it means growing their wealth. As projects like Route 31 quietly reshape the landscape, they also reshape the strategies available to Canadian homeowners navigating an ever-changing housing market.
If you’re curious how your area’s upcoming developments might affect your mortgage options—or want to explore ways to leverage your equity—let’s talk. At Unrate, we help homeowners make informed decisions based on more than just today’s interest rates. Let’s make sure your mortgage works as hard as your home value does.
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