A number of factors are contributing to reduced vacancies and fast rising rents. Experts expect the moderating effect of higher interest rates on asset values to yield to countervailing forces in the medium term.
This page provides an overview of data and statistics on Ottawa’s investment real estate market. Here you’ll find high level stats and data on gross rental income (i.e. rents), net operating income (rents less operating expenses), vacancy, and turnover rates, as well as relative yield. Each of those overviews is accompanied by a link to an article that dives more deeply into more granular data on the topic.
Ottawa Income Property Statistics at a Glance
Median Rent (1-bedroom): 1875 (+ 5.1% y/y).
Net operating income (1-bedroom): $1367
Vacancy: 2% (- 1.5% y/y)
Cost per unit (20+ unit complex): 226k
Cost per unit (triplex) $335k/unit
Going in capitalization rate (class B, triplex): 3.25% + 0.25%
Going in capitalization rate (class B, 20 + unit complex): 4.95% + 0.5%
Stabilized capitalization rate (class B, triplex): 4.95% + 0.5%
Stabilized capitalization rate (Class B, 20+ unit complex) 7.75% + 0.75%
In the following sections, I expand on each of those figures and go into more detail.
Ottawa Rental Income Data
As of Q1 2023, the median rents are:
- Bachelor: $1550
- 1 Bedroom: $1875
- 2 Bedroom: $2195
- 3 Bedroom: $2250
It’s worth noting that, despite their lower rents, Bachelor apartments generate the highest rent per square foot.
My article on rents in Ottawa takes a deeper look at how rents vary by product and location. If you want to learn more about rents, you may consider reading that article.
Ottawa Investment Property Price Data
| Duplex: $379,000/unit | SD:$67k | ($279k-$574k) |
| Triplex: $355,000/unit | SD: $111k | ($193k-$510k) |
| Fourplex: $337,000/unit | SD: $127k | ($200k-$625k) |
| Five unit - ten unit: $313,000/unit | SD: $73k | ($196k-$435k) |
| Eleven unit - twenty unit: $235,000/unit | SD: $39k | ($188k-$288k) |
| Twenty one units +: 226,000/unit | SD: $44k | ($144k-$282k) |
Note that the cost of a unit is partly a function of its grade (quality and location). The per unit cost of a building with more units is lower than the per unit cost of a building with fewer units.
For a more detailed analysis, you may appreciate my article focused on investment property costs in Ottawa.
The following table lists the average sale price in Ottawa since 1956 - as far back as we have records.
| Year | Average Price | 1 Year Change | 10 Year Annualized Change |
| 1956 | $13,351 | 0.20% | |
| 1957 | $14,230 | 6.60% | |
| 1958 | $15,564 | 9.30% | |
| 1959 | $16,038 | 3.10% | |
| 1960 | $16,791 | 4.70% | |
| 1961 | $16,070 | -4.30% | |
| 1962 | $15,952 | -0.70% | |
| 1963 | $16,549 | 3.70% | |
| 1964 | $16,563 | 0.10% | |
| 1965 | $17,056 | 3.00% | 2% |
| 1966 | $18,004 | 5.60% | 2% |
| 1967 | $19,476 | 8.20% | 2% |
| 1968 | $23,329 | 19.80% | 4% |
| 1969 | $25,652 | 10.00% | 4% |
| 1970 | $26,532 | 3.40% | 5% |
| 1971 | $27,808 | 4.80% | 6% |
| 1972 | $30,576 | 10.00% | 6% |
| 1973 | $38,305 | 25.30% | 9% |
| 1974 | $46,661 | 21.80% | 11% |
| 1975 | $49,633 | 6.40% | 11% |
| 1976 | $54,623 | 10.10% | 11% |
| 1977 | $57,032 | 4.40% | 9% |
| 1978 | $59,134 | 3.70% | 9% |
| 1979 | $61,896 | 4.70% | 9% |
| 1980 | $62,748 | 1.40% | 8% |
| 1981 | $64,896 | 3.40% | 8% |
| 1982 | $71,080 | 9.50% | 6% |
| 1983 | $86,245 | 21.30% | 6% |
| 1984 | $102,084 | 18.40% | 7% |
| 1985 | $107,306 | 5.10% | 7% |
| 1986 | $111,643 | 4.00% | 7% |
| 1987 | $119,612 | 7.10% | 7% |
| 1988 | $128,434 | 7.40% | 8% |
| 1989 | $137,455 | 7.00% | 8% |
| 1990 | $141,438 | 2.90% | 8% |
| 1991 | $143,361 | 1.40% | 7% |
| 1992 | $143,868 | 0.40% | 5% |
| 1993 | $148,129 | 3.00% | 4% |
| 1994 | $147,543 | -0.40% | 3% |
| 1995 | $143,193 | -2.90% | 3% |
| 1996 | $140,534 | -1.90% | 2% |
| 1997 | $143,873 | 2.40% | 1% |
| 1998 | $143,953 | 0.10% | 0% |
| 1999 | $149,650 | 4.00% | 1% |
| 2000 | $159,511 | 6.60% | 1% |
| 2001 | $175,971 | 10.30% | 2% |
| 2002 | $200,711 | 14.10% | 3% |
| 2003 | $218,692 | 9.00% | 4% |
| 2004 | $235,678 | 7.80% | 5% |
| 2005 | $244,532 | 3.80% | 6% |
| 2006 | $255,889 | 4.70% | 6% |
| 2007 | $272,618 | 6.40% | 7% |
| 2008 | $290,366 | 6.60% | 7% |
| 2009 | $303,888 | 4.90% | 7% |
| 2010 | $327,225 | 7.70% | 6% |
| 2011 | $343,284 | 4.90% | 6% |
| 2012 | $351,792 | 2.30% | 5% |
| 2013 | $357,348 | 1.60% | 4% |
| 2014 | $361,707 | 1.20% | 4% |
| 2015 | $367,632 | 1.70% | 4% |
| 2016 | $371,901 | 1.20% | 3% |
| 2017 | $392,474 | 5.40% | 3% |
| 2018 | $407,571 | 3.90% | 3% |
| 2019 | $465,221 | 14% | 4% |
| 2020 | $529,675 | 19.90% | 4% |
| 2021 | $660,000 | 24.60% | 6% |
| 2022 | $642,000 | -2.7% | 6% |
Note that the change in the average selling price doesn’t account for changes in the typical thing sold (e.g the typical house sold today is probably bigger than it was in the 50’s) or for changing neighbourhood character (e.g. Mechanicsville is more desirable today than it was 20 years ago). If you’d like a more in-depth analysis that roots out some of those confounding factors and further analyzes appreciation by neighbourhood and product type, then you may appreciate my article on real estate prices in Ottawa.
Ottawa Capitalization Rate Data
Capitalization rates in Ottawa currently range from 4.25% to 5.25% depending on the quality of the structure and the desirability of the location.
Class AA: 4.25%
Class A: 4.65%
Class B: 4.95%
Class C: 5.25%
Ottawa Vacancy Rate Statistics
Across the city, the most recent official vacancy figures (2021) had the vacancy rate at 3.5%. Significantly higher than it had been in the preceding pre-pandemic years. With the return of international students and accelerated immigration, the vacancy rate appears to be dropping. As of Q1 2023, it appears that the vacancy rate is likely 2% or lower.
It’s important to note that vacancy rates vary by neighbourhood. Within Ottawa, vacancy varies from 0.3% to 9.3%.
For example, consider how the vacancy rate differs among these key rental neighbourhoods in Ottawa.
Carlington: 3.5%
Vanier 4%
Lowertown: 9.3%
Sandyhill: 3.7%
Glebe 0.4%
Westboro 0.3%
For a more detailed analysis of every neighbourhood and product, read my article on vacancy rates in Ottawa.
