Ottawa Multifamily Investment Forecast
Population Gains and Surging Home Costs Tighten Ottawa-Gatineau’s Rental Market
Relative affordability draws workers and families to Ottawa. Employment in Ottawa has held steady, due to its assemblage of government and tech workers — industries that were more resistant to job losses at the onset of the pandemic. Many technology-based companies like Shopify have future growth plans in the metro, augmenting the cluster of higher-income roles tied to the Federal Government and providing wage growth prospects. Positions at the numerous tech companies are often being filled by the younger cohort, who tend to favour the rental lifestyle for its flexibility and proximity to employers and urban amenities. Additionally, an 18 per cent increase in single family home prices last year elevated the barriers to entry for prospective first-time homebuyers, pushing more demand toward the rental segment. Nevertheless, lower home and rental costs, compared to metros like Toronto, encourage in-migration by Canadian nationals, further deteriorating the amount of available inventory in a market already facing a shortage. These dynamics paint a positive picture for rental demand going forward.