One property type is pulling buyers off the sidelines in Ottawa's new home market
Ottawa's new home market extended its strong run in August, recording 464 sales. That's a 55.2% jump from the 299 homes sold in the same month a year earlier. The figures come from the Greater Ottawa Home Builders' Association (GOHBA) and PMA Brethour Realty Group.
Month-over-month, sales climbed 9.7% from July's 423 transactions.
Year-to-date new home sales in Ottawa now stand at 3,557, a 50.4% increase over the 2,365 recorded through the first eight months of 2025.
Townhomes led all product types, claiming 46% of sales. Condo townhomes surged to 19% from 8% in July.
Single-detached homes accounted for 34% while condo apartments made up the remaining 1%.
Affordability shaping what buyers choose
Jason Burggraaf, Executive Director of the Greater Ottawa Home Builders' Association, said the product mix reflects how budget constraints are directing buyer decisions in the capital.
"August's sales show that demand for new homes remains strong, but affordability is clearly shaping what buyers choose," Burggraaf said.
"With townhomes and condominium townhomes making up well over half of sales, buyers are gravitating toward more attainable housing options. Governments need to ensure that the way we fund growth doesn't add costs that put those homes further out of reach."
Burggraaf's warning about the cost of funding growth speaks directly to development charges, a persistent pressure point for Ontario builders.
In GTA municipalities, those charges can exceed $100,000 on a new single-family home, according to a C.D. Howe Institute analysis published in 2026.
https://www.gohba.ca/2026/09/21/gohba-pma-brethour-ottawa-new-home-sales-report-august2026/A joint federal-provincial commitment to reduce development charges by up to 50% is working through the pipeline alongside Ontario's move to scrap the HST on new homes in a one-year push}, which offers eligible buyers a rebate of up to $130,000 on homes valued up to $1 million. That program runs until March 31, 2027.
West Ottawa leads the geographic split
The western portion of the city dominated August activity, capturing 40% of new home sales. The south followed at 36%, the east at 20%, and Central Ottawa at 5%.
The results land against a national backdrop that is improving but fragile. 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.
Yet the pace of gains is narrowing. CMHC has warned that a slowdown in new construction could reverse recent affordability progress if Canada underbuilds through the current soft patch in the market.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
