Ottawa’s housing market saw a major shift in 2025, with new construction activity accelerating at a pace not seen in several years. According to data released by the Canada Mortgage and Housing Corporation, housing starts in the Ottawa region increased by 38 percent year over year, signaling a strong response to long-standing housing supply pressures.
In total, construction began on 10,864 new homes, condominiums, and apartments in 2025, up significantly from 7,849 starts in 2024. This growth reflects both policy changes and shifting market demand, particularly toward higher-density housing options.
A Shift Away From Single-Family Homes
One of the most notable trends in the data is the change in housing type. While overall construction rose sharply, single-family home starts actually declined by 8 percent, dropping to 1,397 units. At the same time, construction of townhomes, condominiums, and apartment buildings jumped 48 percent, reaching 9,467 units.
This imbalance highlights a clear direction for Ottawa’s housing future. Builders are responding to affordability constraints, land availability, and municipal planning priorities by focusing on multi-unit and transit-oriented developments rather than traditional detached homes.
December alone illustrates this trend. Construction began on 139 single-family homes, compared to 1,728 multi-unit properties, reinforcing that density is now the dominant strategy for adding housing supply in the capital.
The Role of Ottawa’s Housing Action Plan
Policy changes played a key role in accelerating development. In September, Ottawa Mayor Mark Sutcliffe introduced the city’s Housing Action Plan, a comprehensive framework designed to increase housing supply and reduce bottlenecks in the development process.
The plan includes 53 targeted actions, such as streamlining approvals, reducing development charges in key areas, and encouraging urban intensification near transit corridors. These measures are aimed at helping builders bring projects to market faster while supporting long-term affordability goals.
Early data suggests the strategy is already having an impact, particularly in the multi-residential sector.
Regional and National Context
While Ottawa experienced strong growth, nearby Gatineau moved in the opposite direction. Housing starts there fell 42 percent in 2025, with construction beginning on 2,120 units, underscoring how local policy and market conditions can produce very different outcomes within the same region.
Nationally, housing starts across Canada increased by 6 percent, with 241,171 units under construction in 2025. Ottawa’s growth rate far outpaced the national average, positioning it as one of the more aggressive builders among major Canadian cities.
What This Means for Buyers and Sellers
For buyers, increased construction is a positive sign, especially for those considering townhomes, condos, or new-build communities. While detached homes remain limited, growing supply in other categories may help moderate competition and pricing pressure over time.
For sellers, especially in established neighborhoods, limited single-family construction continues to support strong resale value. As new development concentrates on density, existing detached homes remain scarce and desirable.
Bottom Line
Ottawa’s new construction surge reflects a market adapting to affordability challenges, population growth, and policy reform. While it will take time for increased supply to fully impact prices, the momentum suggests Ottawa is taking meaningful steps toward a more balanced and sustainable housing market.