Ottawa Rental market Tightens in Q1

TORONTO – May 06, 2024:  Urbanation Inc., the leading source of data and analysis on the Canadian condominium and rental apartment markets since 1981, released its Q1-2024 Ottawa rental market results today.

Below is a brief summary of the Ottawa Q1-2024 results:

• Rental market conditions tightened in Ottawa during Q1 as demand strengthened and new supply slowed.
• Condo lease transactions reached a Q1 high, increasing 16% annually to 273 units. Active condo rental listings declined 28% annually and were equal to 1.2 months of supply.
• Average transacted condo rents increased 8% annually to an average of $2.90 psf.
• After reaching a multi-decade high in 2023, purpose-built rental completions totaled only 131 units in Q1. At the same time, net absorptions rose to 593 units, causing vacancy rates to fall to 1.6% in Q1 from 2.4% a year ago.
• Purpose-built rents increased 12% annually to a record high average of $3.16 psf.
• Only two project (421 units) started construction in Q1, and the inventory of units under construction declined 6% annually to 10,873 units.
• There were 111,276 apartment units proposed for development across Ottawa, of which 57% were approved.