Ottawa Rents Hit Record High in Q3 as Vacancy Fell below 2%

Urbanation released its Q3-2023 Ottawa Rental Market Report.

•  The Ottawa rental market continued to show remarkable strength during Q3, with record high absorptions, low supply and surging rents.

• Condo lease transactions increased 12% annually to a record high 343 units, while the average time on market fell to a four-year low of 20 days.

• Average transacted condo rents reached a record high $2,413 ($2.96 psf), rising 8.2% annually.

• Urbanation’s survey of purpose-built rentals now includes 85 buildings totaling 13,384 units completed since 2003 — more than half of which were completed since 2021.

• Despite a multi-decade high 2,762 purpose-built rentals completed so far this year in Ottawa, vacancy rates averaged just 1.6% in Q3.

• Average purpose-built rents in new buildings reached a record high $3.11 psf ($2,396 for 770 sf), with rents extending above the $4.00 psf threshold.

• The inventory of rentals under construction in Ottawa decreased 10% over the past six months to 10,295 units.

• The total proposed supply of apartment units in Ottawa grew to 103,770 units, of which 52,758 units were approved.