The first half of 2023 has proven to be a dynamic period for Ottawa’s real estate rental market, marked by significant developments and notable trends. It’s clear that the nation’s capital continues to be a hub of activity, with both demand and supply shaping the landscape. As a prominent developer, TCU is proud to play a vital role in shaping the market, specializing in purpose-built rentals — two of which landed among the top 10 rental buildings in the city.

Construction Completions
  • A total of 1,800 new purpose-built rental units were completed in the first half of 2023, matching the entirety of the previous year. Q2 2023 recorded an all-time high of 1,281 units completed, with TCU delivering 199 of these rental units.
Rental Rates
  • The average monthly rent for purpose-built units completed since 2003 surged to $2,400, a 5.8% year-over-year increase. The smallest studio and one-bedroom units in the top 10 purpose-built rental buildings command premium rents, reaching an average of $4.52 per square foot for units under 400 square feet.
Vacancy Rates & Demand
  • The average vacancy rate for new purpose-built rentals (excluding initial lease-up buildings) remains low at 1.8%. However, the neighbourhoods of Sandy Hill and Downtown have higher vacancy rates of 2% and 2.5%, respectively. At the completion of Q2, TCU’s top-performing buildings maintained a 0.0% vacancy rate in both Sandy Hill (134 Robinson Ave.) and Downtown (444 Bronson Ave.).
Supply & Growth
  • An additional 1,382 purpose-built units are set for completion in the remaining months of 2023, followed by 2,714 units in 2024 and 2,854 units in 2025. These upcoming completions reflect the city’s commitment to meeting the rising demand for high-quality rental accommodations. TCU is expected to deliver 117 units in 2024 and another 101 units in 2025.

With a surge in completions, rising rental rates, and a preference for well-designed living spaces, the city continues to attract both residents and real estate investors. As we look ahead, the upcoming completions promise a bright future for Ottawa’s real estate rental market, making it an exciting space to watch and be a part of.


*All statistics provided by “Q2 2023 Ottawa Rental Report”, Urbanation.