Ottawa Housing Market Review

In Ottawa, the capital of Canada, the 2016 municipal census recorded that 254,470 residents have their own homes. More than 128,000 residents are renting, and almost 58,000 are opting to live in condominiums.

Forecasts on the city’s housing market in 2017 predicted increases in housing starts for single detached homes and multiplexes. However, the housing starts in 2018 may be affected by a slowdown in the apartment sector.

Housing starts for single detached homes stayed relatively the same in 2015 (1,992 units) and 2016 (1,990), decreasing only by two units. A higher rate is predicted for 2017, ranging between 2,200 and 2,600 units. As for multiplexes, housing starts increased to 3,308 in 2016 compared to 2,980 in 2015. Higher housing starts for multiplexes is also predicted for 2017, ranging between 4,100 and 4,400 units.

However, total construction permits issued in Ottawa decreased by 6.6% in the third quarter of 2017 compared to the same quarter in 2016. Likewise, residential and non-residential permits decreased by 0.9% and 17.2%, respectively.

As for the resale market, transactions grew by at least 10% in 2017. In the same year, mortgage rates in the city ranged from 4.60% to 5% according to the five-year mortgage report by the Canada Mortgage and Housing Corporation (CMHC).