OTTAWA — Despite rising construction, Ottawa rentals continue to rise. The Canada Mortgage and Housing Corporation (CMHC) forecasts that the vacancy rate will increase in 2025, but not enough to bring down rents.

With government programs and a slowdown in immigration, the city’s population will begin to slow, slightly increasing rental affordability. The vacancy rate is expected to reach 2.9 per cent, but that’s only a slight increase.

The average price of a two-bedroom apartment will rise to $1,960 in 2025 (up from $1,880 last year), which CMHC attributes to the rise in new, high-end listings.

The Ottawa housing market is balanced between buyers and sellers. Weak population growth is limiting the number of homes for sale, but lower mortgage rates will support sales growth. The median home price in 2023 was $692,400, and is expected to rise to $734,000 by the end of 2024.

Multi-family construction may slow down due to the large number of rental projects already under construction. However, duplexes and townhouses will remain affordable and will not become cheaper.

The market will receive a new boost after 2025 due to favorable regulatory changes. City authorities support dense development, which may accelerate construction growth in the medium and long term.