Is Ottawa a good rental market for landlords in 2026?

Yes — Ottawa remains one of Canada's stronger rental markets. Vacancy around 2.1% is well below the national average, and steady public-sector employment supports reliable rent payment. The market is normalizing, not loosening dramatically, so landlords who maintain quality and retain tenants will continue to perform well.

What is the average rent in Ottawa in 2026?

Average purpose-built rents sit around $1,620 for a 1-bedroom and $1,890 for a 2-bedroom in 2026. Downtown and the Glebe command a premium, while Vanier, Orléans, and Barrhaven offer more affordable entry points with strong rent growth.

Is Ottawa's vacancy rate rising?

Modestly. Vacancy has edged up to around 2.1% as new purpose-built supply comes online, with larger units feeling the most competition. Small units (studios and 1-bedrooms) remain very tight at under 2%.

Will Ottawa rents go down in 2027?

Rents are more likely to keep rising, but at a slower pace — roughly 2–3% — as new supply moderates the sharp increases of recent years. Ontario's rent control guideline also caps increases on existing tenancies, so most of the growth comes from turnover and new listings.

Ottawa Rental Market Report 2026: Vacancy, Rents & Landlord Outlook

September 12, 2026 Ottawa Prime Properties 10 min read

Ottawa, Ontario, Canada. Arosa Apartments For Rent sign posted outdoors on post along residential street in Centretown.

Ottawa's rental market is entering a decisive phase. After several years of historically tight conditions, new purpose-built supply is beginning to shift the balance — but vacancy remains well below the national average, and rents continue to climb in the most desirable neighbourhoods. This report breaks down the 2026 numbers, neighbourhood by neighbourhood, and what they mean if you own or invest in Ottawa rentals.

In this report

2026 market snapshot
Average rents by neighbourhood & unit type
Vacancy rates & what's driving them
Supply pipeline & forecast
What it means for landlords

2026 Market Snapshot

Here are the headline figures defining Ottawa's rental market in 2026. These represent the Ottawa CMA (Census Metropolitan Area), which includes Kanata, Orléans, Barrhaven, Nepean, and the downtown core.

2.1%

Purpose-built rental vacancy rate

$1,890

Average 2-bedroom rent (purpose-built)

$1,620

Average 1-bedroom rent

~1.8%

Population growth (year over year)

Compared to Toronto (3.5%+ vacancy) and Vancouver, Ottawa remains a landlord-favourable but steadily normalizing market. Rents grew in the low-to-mid single digits, driven by strong employment in the federal public service, technology, and healthcare sectors.

Average Rents by Neighbourhood

Not all Ottawa neighbourhoods move together. Premium urban cores and family-oriented suburbs command higher rents; value-oriented areas offer stronger gross yields. Here's how the numbers stack up in 2026 for a typical 2-bedroom unit.

Neighbourhood	Avg 1-bed	Avg 2-bed	YoY change	Typical tenant
Downtown / Centretown	$1,750	$2,150	+3.4%	Young professionals, students
The Glebe / Old Ottawa South	$1,800	$2,300	+2.8%	Families, professionals
Westboro / Hintonburg	$1,780	$2,200	+4.1%	Professionals, couples
Kanata	$1,600	$1,950	+3.9%	Tech-sector families
Barrhaven	$1,580	$1,900	+4.5%	Growing families
Orléans	$1,550	$1,880	+4.2%	Families, bilingual households
Nepean	$1,620	$1,970	+3.6%	Students, families
Vanier / Overbrook	$1,450	$1,780	+5.1%	Value seekers, newcomers

Key insight: The fastest rent growth is happening at the value end of the market (Vanier, Barrhaven, Orléans). This reflects ongoing demand pressure as would-be buyers remain priced out and renters push outward from the core.

Vacancy Rates & What's Driving Them

Ottawa's purpose-built rental vacancy rate sits around 2.1% in 2026 — up modestly from historic lows but still far below the 3% threshold generally considered "balanced." By unit type, the picture varies.

Unit type	Vacancy rate	Market condition
Studio / Bachelor	1.4%	Very tight — landlord's market
1-bedroom	1.7%	Tight
2-bedroom	2.3%	Balanced-leaning-tight
3-bedroom+	3.1%	Approaching balanced

What's driving vacancy in 2026

New supply: Several thousand purpose-built rental units have come online, with more in the pipeline — easing pressure at the larger-unit end.
Immigration & student demand: Continued inflows keep small-unit vacancy very low, particularly near universities and LRT corridors.
Steady public-sector employment: Federal employment stability underpins reliable rent payment across the city.

Supply Pipeline & 2027 Forecast

Ottawa has a substantial rental construction pipeline, concentrated along LRT corridors and in the downtown core. This matters for landlords because new supply is what eventually loosens the market.

Where supply is concentrated

• Downtown & Centretown high-rises
• LRT Line 1 & Line 2 corridors
• Lebreton Flats redevelopment
• Kanata tech-park adjacent builds

2027 outlook

• Vacancy trending toward 2.5–2.8%
• Rent growth moderating to 2–3%
• Larger units face most competition
• Small units remain very tight

The takeaway: Ottawa is normalizing, not collapsing. Landlords who invest in unit quality, responsive management, and tenant retention will continue to outperform — even as headline vacancy rises.

What It Means for Ottawa Landlords

A normalizing market rewards preparation and punishes complacency. Here are the practical moves for 2026–2027.

1 Compete on quality, not just price. With more choice, tenants will pick the better-maintained unit at a similar price point. Renovating kitchens, updating lighting, and improving energy efficiency pays off in reduced vacancy.
2 Focus on retention. Turning over a unit costs a month or more of lost rent plus turnover costs. A modest, guideline-consistent renewal offer is almost always cheaper than re-leasing.
3 Target the tight segments. Small units (studio and 1-bed) remain very tight. If your portfolio skews to 3-bedroom units, differentiate with quality and family-friendly amenities.
4 Price to the market, not to the peak. Overpricing a unit in a loosening market extends vacancy. Set rents based on current comparable listings, not last year's peak.
5 Stay compliant. Rising vacancy gives tenants more choice — and more willingness to enforce their rights. Ensure every tenancy follows the RTA and the Standard Lease.

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Ottawa Prime Properties provides data-driven rental pricing, unit positioning, and tenant retention strategies across Ottawa, Kanata, Orléans, and Barrhaven.

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