Ottawa’s average rent rises bucking a wider trend of slowed growth

The nation’s capital is one of few cities across the country where asking prices for rent continue to rise.

This trend is in comparison to Calgary, Toronto, Vancouver and Halifax, which all saw a decline in rent costs in the first part of 2025 between 2 to 8 per cent, according to a report by the Canadian Mortgage and Housing Commission (CMHC).

Ottawa, Edmonton and Montreal all continued to see an annual increase in the advertised rent, although, the report notes at a slower pace.

Between 2023 and 2024, the city’s average rent costs for a two-bedroom purpose-built rental unit increased by 3.9 per cent, but last year, compared to 2025, the rent price slowed slightly to 2.1 per cent.

In comparison, Toronto saw a slower rent price decrease in 2023/24, and had a drop of 3.7 per cent this year, the data shows.

Similarly, the report is noting a smaller increase (2.9 per cent) in asking prices for two-bedroom condo apartment rentals in Ottawa this year.

In markets that have low turnover and strict rent regulations the researchers said they noticed a sharp rise in costs when units became available.

To see this “dynamic” experts looked at rent-controlled markets, like Ottawa and Toronto, and compared buildings completed after November 2018 (not rent controlled) with similar buildings constructed between 2011 and 2018 (rent controlled.)

“In both cities, when units in rent-controlled buildings turned over, rents were typically raised to match those in newer, exempt buildings,” the report reads.

Rent prices in older buildings are catching up with new properties in expensive markets like Vancouver. This also forced people to stay in rental apartments longer, leading to a “more substantial” rent increase when they do leave. The report predicts that vacancy rates will continue to rise over the year, due to a slower population growth and employment conditions.

Some traditional units are likely to be harder to fill, experts note, because of financial burdens high rent places on Canadians.

“As affordability pressures persist, more tenants are expected to turn to shared living arrangements, further boosting demand for 3+ bedroom apartments,” it reads. “This shift may make it harder for smaller units to attract tenants as households prioritize space-sharing to save money.”