According to Urbanation's latest Q3-2022 Ottawa Rental market Report, rents in Ottawa increased in Q3-2022 to reach a record high.
Below are some highlights of the latest Q3-2022 results:
• Condominium rents reached a record high $2,231 ($2.68 psf) in Q3-2022, increasing 3.0% quarter-over-quarter and 6.3% year-over-year.
• Condo rents surpassed their pre-pandemic high for the first time, rising 1.7% over the Q3-2020 average of $2,194.
• The 306 condo units rented last quarter was down slightly (-1%) from a year ago but remained near a record high. Condo rental supply has been held back by a low level of new condo completions in Ottawa.
• The fastest annual increases in condo rents were recorded for three-bedroom units at 13.8% and two-bedroom units at 11.0%. Meanwhile, studios recorded the smallest yearly rent increase of 5.3%, and one-bedroom rents were up 8.2%.
• Condo buildings completed since 2020 averaged the highest rents of $3.10 psf.
• The universe of new purpose-built rentals in Ottawa increased to a total of 8,584 units in Q3-2022, rising by 60% (3,202 units) since the end of 2021.
• Despite the strong growth in new rental supply, vacancy rates in stabilized new purpose-built rental projects declined to a pandemic low of 1.5% in Q3-2022.
• The average surveyed rent for available new purpose-built units during Q3-2022 was $2.93 psf ($2,229 for 761 sf), edging down slightly from a high of $2.96 psf surveyed in Q2-2022 mainly due to compositional changes in surveyed units.
• The highest surveyed average rents were found in Sandy Hill/Lowertown at $3.31 psf, followed by The Glebe/Old Ottawa South at $3.26 psf and Downtown at $3.25 psf.
• Compact new purpose-built rentals achieved notable premiums, with studios and one-bedrooms under 500 sf averaging $3.80 psf and two- and three-bedroom units under 800 sf averaging $3.40 psf.
• The inventory of new purpose-built rentals under construction in Ottawa grew to 29 projects totaling 7,039 units, increasing by 2,781 units (+65%) since Q4-2021.
• Longer-term future apartment supply represented by proposed projects that haven’t yet started construction remained at a high of 84,336 units, including 23,253 units identified as purpose-built rentals.