Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 18, 2016 08:15 ET

Ottawa Housing Market to Remain Balanced

OTTAWA, ONTARIO--(Marketwired - May 18, 2016) - Canada Mortgage and Housing Corporation (CMHC) released its Spring Housing Market Outlook report for Ottawa CMA today. Despite improvement in economic fundamentals such as employment and income, total housing starts will be pulled down in 2016 due to a reduction in high-rise construction, particularly condominiums. Total housing starts are expected to range between 4,600 and 4,800 units in 2016, and between 4,300 and 4,900 units in 2017.

Existing home sales are expected to range between 14,300 and 15,700 sales in 2016, and between 14,000 and 15,800 transactions in 2017. Balanced market conditions will prevail over the forecast horizon and average price is expected to range between $365,900 and $378,100 in 2016, and between $369,300 and $384,700 in 2017.

In the rental market, increased supply will pressure the purpose-built apartment vacancy rate upward to 3.8 per cent in 2016 from 3.4 per cent in 2015. Improvement in economic conditions as well as rising migration levels should boost rental demand in 2017 bringing down the vacancy rate to three per cent.

"Historically low mortgage rates and improvements in employment and earnings will support housing demand in 2016," said Anne-Marie Shaker, CMHC Senior Market Analyst. "Homeownership demand will moderate slightly in 2017 as mortgage rates begin to rise."

The national, regional and CMA HMO reports are available here.

In order to access future Market Analysis Centre publications from CMHC, please subscribe to Housing Observer Online by visiting the following link: https://www.cmhc-schl.gc.ca/observer/

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, visit our website at www.cmhc.ca or follow us on Twitter, YouTube, LinkedIn and Facebook.

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Contact Information

  • Media Contact:
    Angelina Ritacco
    Public Affairs Advisor, Communications and Marketing
    416-218-3320
    Cell: 647-210-7420
    aritacco@cmhc.ca