Ottawa Apartment Market

Ottawa is the largest city in eastern Ontario and is Canada’s national capital. Ottawa has a population of 812,129 people and contains 48,007 rental apartments in approximately 1,899 apartment buildings. Because of the political role of Ottawa, the rental apartment market caters to conventional renters but also large numbers of temporary residents, many from other nations, who need short-term housing, often furnished. The city has an apartment rate of 5.9 apartment per 100 people, which makes it above average in supply in Ontario and Canada. The market contains approximately 1,526 buildings smaller than 20 units in size, 180 buildings between 50-199 units in size, and 58 buildings larger than 200 units in size.

Vacancy Rates

Ottawa has an extremely low overall vacancy rate (1.3%) which is spread more or less evenly across apartment styles. Vacancy rates have increased slightly from 2008 to 2009 but by only a few tenths of a percent. Average rents for 2 bedroom apartments ($1,055) and 3+ bedroom apartments ($1,329) are among the highest in Ontario and are probably a function of the low vacancies and high salaries available to residents in the city.

For Investors

Ottawa is a complex and mature rental apartment market which offers many options for renters and investors. Renters can choose from affordable unfurnished rental apartments to expensive, furnished luxury apartments, while investors can buy as big or as small as they prefer and with low vacancies and high average rents have a certain peace of mind that they are buying into a strong market. Several major developers and rental operators (Morguard, Groupe Lepine, Realstar, and GWL) have added new apartment projects to the city’s rental market in the last few years, some of which have been renovations of older properties. These players are attracted by the high rents and low vacancies which the newest properties (post 2000) are achieving in this market.