Market Overview
Ottawa's rental market entered a mild softening phase in June 2026. Overall average rents dropped to $2,099 per month according to Zumper's June 2026 Ottawa rent research — flat month-over-month and down approximately 1% year-over-year. Asking rents have been gradually declining since Q2 2025, with Ottawa being one of the later Canadian markets to join the softening trend.
The Canada Mortgage and Housing Corporation (CMHC) reported Ottawa's apartment vacancy rate at 3.0% in the 2025 survey, up from 2.6% the year prior. CMHC noted Ottawa experienced "the largest rise in new rental supply in the city in almost 50 years" — a supply story that has meaningfully eased conditions.
Ottawa's market historically tracks federal government hiring and student demand, both of which have moderated from 2023-2024 peaks. Combined with the record supply delivery, tenants have more choice than any point in the past decade.
Average Rents by Unit Size
The gap between Zumper's asking rents and CMHC's purpose-built averages is characteristic of Ontario markets: Ontario's Residential Tenancies Act limits annual rent increases on existing tenancies, so CMHC's averages skew lower due to long-term tenants paying below-market rents.
Asking rents (Zumper, June 2026)
- Overall average: $2,099 / month
- Studio: ~$1,575 / month
- 1 Bedroom: ~$1,900 / month
- 2 Bedroom: ~$2,400 / month
Purpose-built rental (CMHC 2025)
- 2 Bedroom (CMHC average): $1,926 / month · +3.4% YoY
Note: CMHC's average reflects existing tenancies where many long-term tenants are protected from full market rent increases. Zumper captures asking rents on new listings — a better indicator of what a new mover pays today.
Neighborhood Landscape
Ottawa's rental market splits naturally between the urban core (Centretown, Byward Market, Glebe, Sandy Hill) and the suburban ring (Kanata, Orleans, Barrhaven, Nepean). Urban rents run 20-40% above suburban equivalents.
Premium urban neighbourhoods
- Centretown / Downtown: Walking distance to Parliament, LRT hub
- Byward Market: Historic core, restaurant scene
- Glebe / Old Ottawa South: Walkable, family-friendly, near UOttawa
- Sandy Hill / New Edinburgh: University-adjacent, established
- Westboro / Hintonburg: Trendy inner-west
Suburban value areas
- Kanata / Stittsville: Tech-corridor, family-sized units
- Orleans: East end, family suburbs
- Barrhaven: South, transit-accessible
- Nepean: Central-suburban mix
Supply and Vacancy
Ottawa saw a landmark year for new rental supply in 2025. CMHC described the increase as "the largest rise in new rental supply in the city in almost 50 years" — a genuinely historic delivery volume that pushed vacancy from 2.0% to 2.7%, then to 3.0% in the annual survey.
New purpose-built rental completions have concentrated in the LeBreton Flats area, Centretown, and suburban master-planned communities. Federal government-adjacent office corridors have also seen investor-built condo inventory shift into the rental market as remote work reduced condo owner-occupation.
Concessions on new-build inventory have become common but remain less aggressive than in Toronto or Vancouver — reflecting Ottawa's relatively slower correction pace.
Outlook
Ottawa's near-term outlook favors continued gradual softening through the balance of 2026. Federal hiring has moderated from its 2023-2024 peak, and student demand tracks post-secondary enrolment which has plateaued. Meanwhile, additional purpose-built completions are scheduled through late 2026.
What this means for renters
- More choice than at any point in the past decade
- Suburban markets remain significantly more affordable than the core
- Ontario rent-control benefit is real — long-term tenants save meaningfully
- New-build inventory in LeBreton Flats and Centretown is heavily amenity-loaded
What this means for landlords
- Realistic pricing outperforms aspirational asks in the current environment
- Small concessions accelerate leasing considerably
- Suburban family-sized units remain in strong demand — the softening is concentrated in urban 1BRs
- Federal-government-relocation demand has slowed but not evaporated
SQRFT's July 2026 Ottawa report will publish on the last business day of July.