Ottawa Rental Completions Hit Multi-Decade High in 2023

Urbanation released its Q4-2023 Ottawa Rental Market Results:

• Ottawa rental completions increased to a multi-decade high of 3,194 units in 2023.
• An additional 3,602 rental units are scheduled for delivery in 2024.
• Rental construction starts fell to a five-year low of 2,872 units in 2023, which will begin to weigh down completions in a couple years.
• As of Q4-2023, there were 10,364 rentals under construction and an additional 106,326 units proposed, of which 62,049 units were approved.
• Rental units completed in 2023 acheived an average absorption rate of 66%.
• Within stabilized buildings completed since 2003, the vacancy rate in Q4-2023 was 2.1%, edging up from 1.9% in Q4-2022.
• Rents within purpose-built rental buildings completed since 2003 reached a record high of $3.16 psf in Q4-2023, increasing 3.3% annually.
• A total of 1,066 condominium rentals were leased via MLS in 2023, the second highest annual total on record.
• Average monthly rents for condominiums increased 9.6% year-over-year in Q4 to a record high $2,488. Annual growth averaged 4.7% over the past five years.
• Average per sf condominium rents increased 7.7% annually in Q4 to $2.80.