Housing affordability in Ottawa has been, and will continue to be, a hot topic this year. Ottawa, much like other major cities in Ontario and Canada, has a lack of affordable housing that’s become a real issue for our community. Residents have been left in quite the predicament; either work toward buying a home in a market that’s been quite unpredictable or rent at rates that soar way above the measure of affordability.
The battle between renting vs. buying continues as Canadians see the volatility of the housing market, interest rates and the economy. There’s not going to be a one-size fits all approach but this guide will walk you through the Ottawa housing market and how to narrow down your options.
Here’s what we know about Rental Affordability in Ottawa Right Now.
Here’s the good news: when compared to other major Canadian cities, like Toronto and Vancouver, Ottawa housing has remained relatively affordable. The overall MLS® HPI Composite benchmark price was $626,200 in March 2025, up 2.2% from March 2024 (OREB). Comparatively, the benchmark price in Toronto sat at $1,059,500 in March 2025 (TRREB).
One way of measuring housing affordability is the percentage of income a household would need to cover homeownership costs. In an RBC report released in Q4 2024, the share of income a household in Ottawa would need to cover home expenses was 46.5% (RBC). While this still indicates relative un-affordability, this is share is down 1.8% from Q3 2024, making it the fourth consecutive quarterly improvement.
In general, the Ottawa housing market is positioned to remain stronger than many other markets. However, the threat of tariffs, job and economic uncertainty are still curbing the market’s growth trajectory. As of Q1 2025, Ottawa’s housing supply and demand are growing at a very similar pace, setting up Ottawa to remain in a balanced market.
Here’s What The Ottawa Rental Market Looks Like in 2025
In 2024 we saw a huge uptick in rental apartment starts as the rental demand at the time drove decision making. The government incentivized purpose-built rental apartments with tax credits for developers. It’s expected that as rental demand softens this year, development will also slow.
There are many factors that could impact rental affordability, however the general consensus is that rental affordability will remain tight.
| Number of Bedrooms | Median Monthly Rent | # of Available Units |
| Studio | $1599 | 164 |
| 1-Bedroom | $1953 | 412 |
| 2-Bedroom | $2450 | 356 |
| 3-Bedroom | $2650 | 147 |
Here’s What We Know about Buying a Home in Ottawa Right Now.
In Ottawa, the aggregate price of a home in the fourth quarter of 2025 is forecast to increase 4.0 per cent year over year to $803,712 according to the Royal LePage Market Survey Forecast.
Our market is heavily influenced by interest rates, so as we see the steady and gradual decrease in interest rates by the Bank of Canada, buyers will flock back to the market and prices will increase again. The Ottawa market predictions for Spring 2025, are leaning toward a buyer’s market as we’re seeing increased inventory with relatively stable demand. We do expect demand to heat up this Spring which may put slight upward pressure on pricing.
It’s predicted that the median price of a single-family detached property is expected to rise 5.0 per cent to $935,340, while the median price of condominium is forecast to increase 3.0 per cent to $407,365 (Royal LePage Market Survey Forecast).
What does this Housing Market Outlook Mean?
Well, this information will mean different things to different people. For those who have the means to buy, it means that Spring 2025 might be your time. Prices are remaining somewhat stable as demand and supply remain balanced. As more buyers come to the market, we may see things shift slightly putting upward pressure on prices if supply doesn’t grow at the same pace.
If you don’t have the means to buy this year and renting is your only option there are a few key things to keep in mind when you’re looking for a place to call home:
- Work with a realtor. Many people forget that a realtor can help you on your quest to rent. Having access to someone who can find you an appropriate home within your price range is going to help relieve some of the stress of searching.
- Look at neighbourhoods with an average rental price that is within your budget. Some of the most affordable neighbourhoods include: Sandy Hill, Vanier, The Glebe, and Centretown.
- Also take a look at housing types. There can be a vast price difference between a condo, apartment, detached home, etc. Renting a room could be a suitable option for you if you’re looking to save on rent. Basement units or multi-unit homes can provide more space for a more affordable price.
If you have questions about what’s possible for you this year when it comes to real estate, reach out to us. We can connect you with mortgage professionals and provide resources for you to set yourself up for success this year.
