{"id":524230,"date":"2026-03-09T09:03:19","date_gmt":"2026-03-09T09:03:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/524230\/"},"modified":"2026-03-09T09:03:19","modified_gmt":"2026-03-09T09:03:19","slug":"cmhc-index-shows-housing-affordability-crisis-has-spread-to-ottawa","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/524230\/","title":{"rendered":"CMHC index shows housing affordability crisis has spread to Ottawa"},"content":{"rendered":"

A new index by the Canada Mortgage and Housing Corporation (CMHC) shows Canada\u2019s housing crisis<\/a> has eased over the years but still remains at historic highs, and has even spread to cities outside Vancouver and Toronto.<\/p>\n

That includes Ottawa, where housing affordability<\/a> for homeowners has nosedived since 2019.<\/p>\n

According to the index,<\/a> the city experienced two waves of housing unaffordability. The first wave happened between 1999 and 2011, when there was less economic activity happening in Ottawa because of stagnant wages and inflation.<\/p>\n

The second wave started in 2020 and lasted until 2022. High interest rates, along with supply chain disruptions and increased homebuilding costs, contributed to a sharp decrease in housing affordability in Ottawa.<\/p>\n

\u201cThere\u2019s been some catch up since then. The index has improved consistently since 2022 until 2025, which is the last data point we have,\u201d said Mathieu Laberge, chief economist for the CMHC, in an interview with the Ottawa Citizen.<\/p>\n

\u201cOf course, there\u2019s still a lot of way to go to go back to pre-COVID levels, but it\u2019s on the right path \u2026 We forecast some price appreciation in the housing market (over the next few years), but none of the same levels we\u2019ve seen during the COVID-19 pandemic. That gives us some hope, because that means incomes will be able to catch up over time with housing prices, which is a driver for affordability.\u201d<\/p>\n

The CMHC\u2019s housing affordability index was published almost a week after the National Housing Bank released its newest Housing Affordability Monitor report<\/a>, which says Ottawa\u2019s housing market is becoming more and more expensive.<\/p>\n

Data from the report suggested that the average price tag for a non-condo residential unit is around $764,858, and the annual household income needed to afford a home in that market is around $173,814 a year. It will take an individual or a family around 60 months to save the amount required for a down payment, the report added.<\/p>\n

For condos, the average price tag is around $403,382, and the annual household income needed to afford one of those units is around $93,370 a year. It will take an individual or a family around 24 months to save the amount required for a down payment.<\/p>\n

But Laberge said it\u2019s more important to look at the diversity of available units in Ottawa\u2019s housing market.<\/p>\n

\u201cIt\u2019s important that there are entry level, mid-market and higher-end units available. What we\u2019re seeing right now is the mid to higher end of the market is pretty well supplied right now,\u201d he noted.<\/p>\n

\u201cThe affordable part of the market still needs more supply. It\u2019s still a very tight market.\u201d<\/p>\n

It\u2019s not just aspiring homeowners feeling the squeeze.<\/p>\n

The CMHC\u2019s housing affordability index also shows a volatile rental market in Ottawa, with prices increasing and diving every year or so.<\/p>\n

While the rental market saw a decrease in affordability between 2015 to 2020, it has since stabilized, Laberge said.<\/p>\n

Ottawa\u2019s average rental prices have historically been in line with other major cities nationwide, he added.<\/p>\n

\u201cI think this is good news for Ottawa. That means the rental market is still relatively affordable or attainable,\u201d the economist said.<\/p>\n

Laberge noted, however, that renters typically have less discretionary spending to manage broader inflationary pressures. This means it\u2019s harder for renters to reallocate their spending or borrow funds in the short term to cover increased costs.<\/p>\n

As a result, their housing budgets are much tighter, reducing their ability to pay for a rental unit.<\/p>\n

\u201cPeople that can afford a mid- to high-end rental or a rental condo will find options. But on the more affordable or attainable end of the market \u2014 units for folks like firefighters, teachers, nurses, etc. \u2014 it\u2019s still a very tight market. That explains a lot of the volatility,\u201d Laberge said.<\/p>\n

Laberge said there\u2019s hope in the horizon for renters, however. Vacancy rates are increasing, which means there are a lot more options for renters.<\/p>\n

The pace of rent growth is also slowing down, he said. While rental prices are still increasing, it is happening at a much slower pace, allowing incomes to catch up.<\/p>\n

Programs like the federal government\u2019s Build Canada Homes<\/a> initiative and the City of Ottawa\u2019s Affordable Housing Community Improvement Plan will also incentivize the development of affordable units in the city, which will help with affordability, the economist noted.<\/p>\n

\u201cI\u2019m pretty optimistic for the rental market going forward. It\u2019ll happen in a couple of years, but we will see some improvement over time,\u201d Laberge said.<\/p>\n

\u201cThere\u2019s been a lot of action from all levels of government \u2014 provincial, federal and municipal \u2014 to actually make sure that the rental market is well supplied \u2026 There has been interventions by governments to make that happen.\u201d<\/p>\n

Laberge said he feels empathetic towards people who are struggling to find affordable housing, especially when it feels like prices aren\u2019t coming down quickly enough.<\/p>\n

\u201cI totally empathize with people who are finding it tough. I know it may be hard, but the data is showing that things are slowly improving,\u201d he said.<\/p>\n

\u201cHang tight. It\u2019s coming, it\u2019s there. There\u2019s been a lot of interventions to actually accelerate that, and what we\u2019re seeing is it\u2019s working.\u201d<\/p>\n

Our website is your destination for up-to-the-minute news, so make sure to bookmark our\u00a0homepage<\/a>\u00a0and\u00a0sign up for our newsletters<\/a>\u00a0so we can keep you informed.<\/p>\n

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