Ottawa Multifamily Market Report

Influx of new residents suppresses availability. Ottawa’s multifamily sector experienced a demand recovery in 2022. While new supply rose 15 per cent, vacancy fell by 130 basis points, indicating that demand expanded at a much faster pace. The return of in-person activities aided part of this demand rebound, as the metro saw a net inflow of 4,100 foreign workers and international students. This was in stark contrast to a net outflow of 2,700 non-permanent residents recorded in the prior year. Sandy Hill and Lowertown, where the University of Ottawa is located, recorded the largest drop in its vacancy rate of 320 basis points. The Glebe/Old Ottawa South submarket, which hosts Carleton University, approached near-full occupancy, with vacancy falling to 0.7 per cent. Ottawa also saw a net increase of 16,000 permanent residents, doubling the 2021 level, which boosted apartment demand even further. This strong migration momentum will support a positive long-term outlook for the multifamily sector, which should spur investment activity over the coming years.