Stability continues to define homebuying activity in Ottawa, with year-to-date sales of condominium townhomes and apartments sitting just three per cent off 2024 levels. Values have held relatively steady, with the average price of a condominium almost on par with year-ago figures. Minimal changes have occurred in the market to date, despite a continued influx of new condominium inventory throughout the year. Buyers remain value-driven and cautious, yet renewed optimism began to surface following the Bank of Canada’s second overnight rate cut in October.
Shifting dynamics between condominium types
Although economic uncertainty and concerns over the upcoming federal election hampered sales early in the year, the market has since regained its footing. Bolstered by recent overnight rate cuts, buyers have gradually re-entered the market, taking advantage of a good selection of condominium product at lower price points. Increased new-build supply has created intensified competition, with older, more basic condominiums feeling the pressure against newer, amenity-rich product. Active resale listings approached 1,200 units in October, up 36 per cent from the same period in 2024.
Of more than 2,700 condo sales reported in the city between January and October of this year, over 61 per cent were condo apartments, down from more than 72 per cent one year earlier, according to The Habistat, a market analytics service (https://thehabistat.com). In contrast, condominium townhomes have grown their market share from 28 per cent in 2024 to nearly 39 per cent this year.
First-time buyers and young families continue to gravitate toward condominium townhomes for their larger layouts and in some cases, lower maintenance fees. Demand is strongest in suburban communities such as Orleans, Barrhaven and Kanata, which offer an appealing combination of affordability, space and amenities. Riverside South, Greenboro and Findlay Creek also remain sought after, with units in these pockets experiencing rapid absorption. Nearly 80 per cent of all condo sales occurred under the $500,000 price point this year.
Resale trends and market segments
Well-priced apartment condos, particularly purpose-built units offering large square footage, continue to sell briskly. Luxury apartments have also held firm, with transactions over $1 million up five per cent year to date. Limited supply in top locations is expected to bolster demand from downsizers and urban professionals into 2026.
The largest build-up of inventory is evident in Ottawa’s micro-condo market. Originally designed for investors and student rentals, these newer units hovering at 450 sq. ft. have become a harder sell amid the current market backdrop. However, they offer an affordable entry point for first-time buyers, with values typically ranging from the high $300,000s to low $400,000s, depending on location and amenities. Many are situated in trendy neighbourhoods such as Westboro, Hintonburg and Little Italy, that offer good walkability and easy access to the LRT.
Investor activity has softened considerably in the Ottawa area, with a visible pullback from Greater Toronto Area (GTA) buyers. Lower immigration numbers and a cap on international student visas have further dampened demand, particularly in the neighbourhoods surrounding Ottawa’s universities and colleges—areas that traditionally rely on this rental segment.
Despite near-term challenges, Ottawa remains a hallmark of stability, supported by a resilient economy, strong public-sector employment base and growing demand for affordable housing options. Market sentiment is expected to strengthen in 2026 with at least one interest rate cut expected early in the year and consumer confidence on the upswing. Increased absorption is expected in the condominium market, laying the groundwork for healthier, more balanced conditions. Significant infrastructure investment, most notably the extension of the O-Train Line 1, will enhance mobility and expand accessibility. Combined, these factors combined will play a key role in supporting growth in 2026.
