Rental Vacancy in Ottawa Increased to 3.5% in Q4

Urbanation's 𝗤𝟰-𝟐𝟎𝟐𝟓 𝐎𝐭𝐭𝐚𝐰𝐚 𝐑𝐞𝐧𝐭𝐚𝐥 𝐌𝐚𝐫𝐤𝐞𝐭 𝐑𝐞𝐩𝐨𝐫𝐭 revealed softening market conditions in the backdrop of a record-breaking amount of new rental supply entering the market.

🏢 The Ottawa rental market saw a multi-decade high of 4,646 units complete in 2025, as an additional four projects totaling 716 units commenced their initial lease-up in Q4.

💡 Net absorptions totaled 3,588 units in 2025, pushing vacancy rates in stabilized buildings up to 3.5% as of Q4.

💰 Reflecting the softening market conditions, average rents declined to $3.24 psf as of Q4, with 64% of projects now also offering promotion incentives, up from 43% of projects a year ago.

🔑 Looking ahead, purpose-built rental completions are projected to persist at high levels with approximately 4,187 rental units forecast to complete in 2026.

🏗️ Construction starts continued to grow in 2025, reaching a four-year high of 4,765 units.

⚖️ This stabilized the number of rentals under construction at 10,807 units by year-end despite record levels of rental completions.

💲 In the secondary condo rental market, lease transactions grew 14% annually to 1,169 units in 2025. Condo rents increased 1.1% year-over-year to an average of $2.84 psf.