Ottawa Rental Supply Spikes in Q2

Urbanation released its Q2-2025 Rental Market Survey for Ottawa.

Findings include:

• The Ottawa rental market experienced a surge of new rental supply entering the market with 9 projects totaling 2,445 units commencing their initial lease-up.

   

• Challenges in working through the influx of new rental supply resulted in the overall occupancy rate of post-2000 buildings dropping to 82.5% as net absorptions totaling 882 units fell well short of new completions.

   

• Despite this, vacancy rates in stabilized buildings remained steady at 2.5%, while average rents grew slightly 0.9% annually to $3.29 psf.

   

• Purpose-built rental completions are projected to rise to a multi-decade high of 5,872 units in 2025, a 59% increase from 2024. 

   

• A total of 900 rental units started construction in Q2, down 40% from a year ago.

   

• The challenging economic environment for new rental development caused the total number of rentals under construction to fall to four-year low of 7,895 units.

   

• A total of 148,057 purpose-built rentals were proposed for development as of Q2, of which 81,942 (58%) were approved

   

• In the secondary condo rental market, lease transactions grew 30% annually to 318 units.

   

• Condo rents increased 2.8% annually to reach a new high of $2.97 psf.

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