The Ottawa housing market has experienced rollercoaster-level ups and downs in the last few years. In 2023, the market was heavily volatile, but in 2024, recovery started to show that there was a light at the end of the tunnel.
Now, in 2025, some new predictions are highlighting trends you’re likely to see take off this year in the real estate market, and if you can stay on top of the trends, you’ll be able to reap the benefits of the good ones while avoiding the consequences of the bad.
Here are four significant Ottawa real estate market trends you should watch this year.
Buyer Behaviours
This year, buyers will be far more deliberate in their choices when buying a property. They’re also going to practice more caution to ensure that their large investment doesn’t end up costing them more than they bargained for.
People will prioritize different things, and their buying behaviours will reflect that. For example, remote work has grown significantly in recent years, and spaces in suburban and rural areas that accommodate that style of work will be more popular with buyers.
Sustainability is also high on everyone’s list, so eco-friendly and energy-efficient properties will likely be in high demand. Solar panels, smart homes and thermostats, and high-efficiency HVAC systems are key selling points.
Multi-generational housing will continue to top the list, with larger homes that can accommodate larger families being hot properties for many buyers.
Policy Change Impacts
In 2024, real estate policies were implemented that will have an effect on the market into 2025 and beyond. The foreign buyer ban, a two-year ban on foreign buyers, will reduce the level of competition that local buyers have when searching for properties in high-demand neighbourhoods.
The government also implemented incentives to make it easier for first-time buyers to get their foot in the door, including down payment assistance and tax credits, opening up the market to a new demographic of potential buyers.
To address the growing population, the City of Ottawa made zoning changes that allow for more multi-family units, giving multi-generational housing buyers more options.
Supply and Inventory
Inventory and supply will ramp up in the city in 2025, and several large-scale developments will be underway in new communities such as Riverside South, Barrhaven, and Kanata.
In addition to new builds, the city will also see an increase in inventory due to more homeowners choosing to sell this year.
These changes will reduce high levels of competition that drive up prices and encourage bidding wars.
Affordability and Interest Rates
In the middle of 2024, the Bank of Canada paused interest rate hikes to allow for more affordability in the housing market. That stabilization is expected to continue into 2025, with rates remaining between four and five percent.
This level of stability grants predictability in the market, encouraging more people into the market with better and more favourable conditions for buyers.
The 2025 trends in the real estate market in Ottawa aim to make it easier for buyers to get into a house they can afford, improve the number of homes on the market to disrupt the bidding-war expectations of the past few years, with buyers putting a special emphasis on the things that matter most to them, such as being close to family and living sustainably.