Ottawa Housing Market to See Slight Rise in 2016

OTTAWA, ONTARIO--(Marketwired - Nov. 5, 2015) - Ottawa's housing market will expect a rise in housing starts in 2016, but will remain below recent peaks as condominium construction scales back.

"Steady housing demand is expected in Ottawa in 2016 as employment and earnings improve," said Anne-Marie Shaker, CMHC Market Analyst. "Low mortgage rates and modest price growth will continue to support demand for low-rise dwellings this year and next, but stronger price growth and a rise in mortgage rates will pressure homeownership demand much more so in 2017."

At this year's Ottawa Housing Outlook Conference (#HOCOTT), titled 'Your Guide to Ottawa's Housing Market', CMHC housing market analysts provided an in-depth forecast for 2016, and explained how economic and demographic trends will impact the housing industry in Ottawa.

Highlights from today's conference included:

• Housing starts will increase in 2016 to 5,120 compared with 4,935 in 2015.
• Apartment starts will remain flat at 1,800 in 2016 as construction rates scale down.
• MLS sales will grow by 3.4 per cent in 2016, a slightly slower growth rate than in 2015.

"Despite improving economic performance, Ontario housing activity is expected to slow over the forecast period as the cost of owning a home continues to increase," said Ted Tsiakopoulos, CMHC Regional Economist. "However, some segments of the housing market will do better than others. Homes in south western and southern Ontario markets bordering the GTA tend to be more affordable, thus we expect a lot of activity in those centers as we do for high-density housing which includes less expensive rental accommodation."

As Canada's national housing agency, CMHC draws on 70 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.

Follow CMHC on Twitter @CMHC_ca, LinkedIN and Facebook.

Use hashtag #HOCOTT