A record sales run is raising questions about what gets built next in Ottawa
Ottawa’s new home market posted its strongest September in recent memory, with 521 sales recorded. That's an 81.5% increase from the 287 transactions closed in September 2025, according to data from the Greater Ottawa Home Builders’ Association (GOHBA) and PMA Brethour Realty Group.
Month-over-month, activity climbed 12.3% from August’s 464 units. Year-to-date, 4,078 new homes have sold in Ottawa through September, up 53.8% from 2,652 at the same point last year.
Supply gap persists despite record sales pace
Housing starts in Ottawa are up 14% in 2026, with 8,169 homes under construction compared with 7,168 in the same period last year, according to the Canada Mortgage and Housing Corporation (CMHC).
However, the gains have not kept pace with demand for ownership housing. Much of that pipeline is weighted toward rental, raising the prospect that Ottawa’s affordability recovery could go into reverse if the ownership supply gap continues to widen.
Jason Burggraaf, Executive Director of the Greater Ottawa Home Builders’ Association in Ontario, said September’s gains carry an important caveat.
“September’s sales are encouraging, but CMHC’s latest report shows Ottawa still faces a widening housing supply gap, with much of its construction activity concentrated in rentals,” Burggraaf said.
“Improving affordability means supporting more ownership housing too. Finalizing the development charge reduction agreement is an immediate opportunity to lower building costs, and we’re pushing for a timely resolution so some 2026 construction can benefit.”
The concern echoes comments Burggraaf made on Ottawa’s August new home sales results, when he cautioned, “Governments need to ensure that the way we fund growth doesn’t add costs that put those homes further out of reach.”
Geographically, Ottawa’s west end captured 43% of September sales, with the south at 40%, together accounting for 83% of all transactions.
The east recorded 15% and Central Ottawa 2%. Townhomes led all product types at 44%, followed by single-detached homes at 35% and condo townhomes at 20%.
Development charge relief within reach
City council approved a plan in July to reduce development charges by 54% over three years, tied to a joint federal-Ontario infrastructure fund.
Under that framework, charges on single-family and semi-detached homes inside the Greenbelt would fall to $25,752, with suburban builds set at $28,781.
Development charges are one-time fees levied on new residential properties to fund growth-related capital infrastructure.
The push to finalise the agreement comes as Canada’s housing affordability reached a four-year best in Q1 2026, according to RBC Economics, with the national aggregate measure falling to 53% of pre-tax median household income required to cover ownership costs.
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