Ottawa, Jan. 21: The Ottawa Census Metropolitan Area (CMA) has witnessed an impressive rebound in its housing market, with multi-family unit sales surging by 75 per cent from the previous year.
This remarkable growth is largely attributed to the increasing popularity of townhouses, particularly stacked units, which have become a key player in the market.
Strong Performance in Townhouse Sales
In 2024, a total of 2,079 multi-family units were sold in the Ottawa CMA, a significant increase from 2023. The majority of these sales were driven by new townhouses, with 1,997 units sold-an impressive 72 per cent rise year-over-year. The fourth quarter of 2024 alone saw 858 townhouses sold, marking an 84 per cent increase compared to the same period in the previous year.
Condominium Market Shows Mixed Results
While new condominium apartment sales also saw improvement, with 82 units sold-a staggering 204 per cent increase-the overall apartment market remains sluggish. At the end of 2024, there were still 225 unsold and built units in the Ottawa CMA, indicating a need for more demand in this segment.
Leading Areas for Townhouse Sales
The growth in townhouse sales was notably led by new master-planned communities in Ottawa's west and southwest regions. Barrhaven and Stittsville together accounted for 52 per cent of all townhouse sales in 2024, with an additional quarter of sales occurring in Kanata and Orleans.
Pricing Trends for New Townhouses
As of Q4-2024, new townhouses in Ottawa, including both stacked and traditional units, sold for an average price of $584,532. The absorption rate for the fourteen new townhouse developments that opened during the year reached 67 per cent by the end of Q4-2024, with an average sold price for these developments at $490,963.
Affordability Drives Demand
Affordability has played a crucial role in the market's recovery, with nearly half of the new units being stacked townhouses. These units sold for an average price of $387,150 and typically offered around 1,066 square feet of living space. In contrast, traditional townhouses in newly launched developments averaged 1,801 square feet and sold for about $588,334.
The low-rise condominium apartment market saw limited activity as well, with just two new projects launched in 2024. These condominiums had an average selling price of $431,293 for units averaging 727 square feet.
Future Outlook
"Ground-related townhouses really are the engine of this market," states Pauline Lierman, Vice President of Market Research at Zonda Urban. She notes that by late 2023, developers were already adjusting their strategies to offer more affordable stacked towns and compact traditional units-often marketed as 'urban' properties priced below $650,000. This shift has successfully attracted buyers back to the market throughout 2024.
Zonda Urban anticipates that these trends will continue into 2025 as relatively affordable price points remain attractive in Ottawa's newer suburban communities.
For more information, visit ZondaUrban.com/news.
