Urbanation released its Q2-2023 Ottawa Rental Report.
- Urbanation’s survey covered a total of 78 purpose-built rental projects totalling 11,999 units completed since 2003.
- A total of 1,281 new purpose-built rentals reached completion in Ottawa during Q2, representing a recent high. These new occupancies achieved a 43% absorption rate.
- Construction starts for purpose-built rentals slowed to 581 units in Q2, which lowered the total number of rentals under construction to 10,297 units from the recent high of 10,997 units in Q1.
- Despite the large infusion of new rental supply since 2021, vacancy rates continued to trend down to an average of 1.8% in Q2.
- The average surveyed available rent in purpose-built rental projects completed since 2003 was $2.98 psf, or $2,400 for 806 sf. Average monthly rents rose 5.8% annually.
- There were clear per sf rent premiums for compact purpose-built rentals, with the smallest units under 400 sf averaging $4.52 psf.
- In the condo rental market, lease activity remained near a record high while completions fell to a 22-year low, resulting in tightened market conditions.
- The average transacted condo rent reached a record high $2.83 psf, or $2,288 for 809 sf. Average monthly condo rents were up 5.7% annually, averaging 5- and 10-year annual growth of 3.3%.
- Studio condo rentals experienced the fastest annual rent growth of 13.5% in Q2.