Is Ottawa a Good Place to Invest in Real Estate?

If you’re thinking of investing in real estate, you should definitely consider the Ottawa market.

There are many reasons why Ottawa could be a great place to invest in real estate, given the conditions across the Canadian housing market. Although, it’s essential to remember that real estate investment is a long-term investment that typically provides little to no cash flow. This is something to consider when looking into real estate investing in general.

Your investment property likely won’t yield a return in the short term, but it will build equity that compounds over time if you select a property in the right area.

Here’s why Ottawa might just be the right area for your investment:

  1. Ottawa is one of the fastest-growing municipalities in Canada.

Between 2016 and 2021, Ottawa’s population increased by 8.9%, surpassing the 1-Million mark. Comparatively, Toronto only grew by 2.3% in the same period.

It’s also predicted that Ottawa will be the fastest-growing municipality in Eastern Ontario, increasing by 46% between 2020 and 2046.

What does this mean for the real estate market? High demand.

With increased population comes increased demand for housing, and as we’ve all experienced in the last few years, there’s an extreme housing supply shortage across all of Ontario.

If you can get into the market now, you’ll have the upper hand when the market spikes again. In the meantime, you can count on a non-volatile market that attracts responsible, well-employed tenants.

  1. The market is still affordable compared to other major markets.

While “affordable” may seem like a stretch, it’s true when you compare it to other major Canadian markets like Toronto, the GTA, and London.

Currently, the Ottawa market is still significantly more affordable than a market like Toronto. For example, the median price of a single-detached home in Toronto at the end of Q1 2022 was $1,565.000, while in Ottawa, the median price is $818,000.

When you compare the growth rate of single-detached homes in both Toronto and Ottawa for Q1 2022, you’ll see that Toronto’s growth rate is approximately 10% higher than Ottawa’s. BUT, keep in mind that you can purchase a property for almost 50% less in Ottawa, making it a significantly easier market to penetrate. 

Also, keep in mind that your property is dependent upon rental income. Comparing what your monthly mortgage payment will be to what the potential monthly rental income will be is very important. 

If you break down the cost compared to potential earnings, you’ll see the benefits of investing in Ottawa versus Toronto. Using the average prices from above and a mortgage interest rate of 4% over 30 years with 20% down, your monthly payments in Toronto and Ottawa would be approximately $4800 and $3100, respectively.

According to, as of May 2022, the average monthly rental income for a single-family home in Toronto is $3542; for Ottawa, it is $3007. In both markets, you’ll experience negative cash flow, but in Ottawa, it is significantly less.

Remember that negative cash flow isn’t necessarily a bad thing when it comes to real estate investment. Your property will build equity and compound over time to provide returns, which is why real estate investment requires you to be in it for the long run.

  1. Some neighbourhoods have seen extreme growth in the last few years.

If you’re looking to invest in the Ottawa market, it’s crucial to understand how the market differs from neighbourhood to neighbourhood.

Consulting with an experienced, local real estate professional will be your key to success. We understand the nuances of the Ottawa market and can guide you toward the least-risky investment.

Some areas that have seen extreme growth are:

  • Barrhaven (124% price increase since 2017)
  • Kanata (115% price increase since 2017)
  • Orleans (110% price increase since 2017)
  • Stittsville (107% price increase since 2017)
  • Alta Vista (91% price increase since 2017)

All things considered, Ottawa is a great place to invest in real estate. Given the right conditions, including property type, location and market predictions, investors should see a generous return on their long-term investment.

Talk to a financial advisor if you’re considering investing in real estate. Understanding your finances and limitations is extremely vital in today’s economic landscape.

If you’ve already decided to invest in real estate and are looking in the Ottawa area, reach out to us! We’d love the advise you throughout your journey to ensure you put your money into the best possible property.