Ottawa Rental Starts Reach Multi-Decade High in Q3

Urbanation released its Q3-2025 Ottawa Rental Market Results:

• A total of 1,758 purpose-built rental units started construction in Q3, the highest quarterly total in at least 35 years.

   

• However, the total number of rentals under construction at 9,823 units in Q3 was 13% below the recent high of 11,230 units from a year ago.

   

• This was due to YTD rental completions totaling 3,930 units. Rental completions in Ottawa are projected to rise to a multi-decade high of 5,106 units by the end of 2025, a 38% increase from 2024. 

   

• Net absorptions totaling 1,455 units in Q3 exceeded new completions in Q3 (911 units), resulting in the overall occupancy rate of post-2000 buildings climbing back up to 87% from the recent low of 84% in the previous quarter.

   

• Despite the surge in new supply this year, rental market conditions were stable as vacancy rates in stabilized buildings remained modest at 2.8% and average rents edged up 1.6% annually to $3.30 psf.

   

• In the secondary condo rental market, lease transactions grew 11% annually to 336 units – 21% higher than the 10-year average.

   

• Condo rental market conditions became more balanced in Q3 as total listings during the quarter grew 23% annually.

   

• Condo rents were unchanged year-over-year at an average of $2.90 psf.