Ottawa's housing market is beginning to find its footing again after a bruising correction, but the recovery is far from uniform, and where you buy in the city matters enormously right now.
The Headlines vs. The Reality
Aggregate statistics can be misleading. When Ottawa's real estate board reports that average prices are ticking upward, that number blends together vastly different stories: a sizzling Westboro bungalow market, a sluggish Barrhaven condo inventory, and everything in between.
Understanding which parts of Ottawa are recovering, and which aren't, is essential for buyers and sellers making decisions in 2025 and 2026.
Intown Neighbourhoods: Recovering Faster
The Glebe, Hintonburg, Westboro, Old Ottawa South, and Old Ottawa East are all showing healthier sales-to-listing ratios than the city average. These walkable, established neighbourhoods have inelastic supply, it's virtually impossible to build significant new housing there, which puts a floor under prices.
Families and professionals with solid equity from previous homes are gravitating toward these areas. Bidding situations, while not as intense as in 2021, are reappearing for well-priced listings.
Suburbs: A Mixed Picture
Barrhaven, Kanata, and Orleans absorbed the most speculative buying during the boom and are experiencing the slowest recovery. Inventory is higher than in the urban core, and sellers in these areas are having to price more competitively.
That said, Kanata North's tech sector is providing a cushion. Engineers and tech workers who may not be federal employees are still active buyers in that pocket.
Condos vs. Freehold
Freeholds are recovering faster than condos in Ottawa right now. Condo supply, especially in downtown high-rises, expanded significantly during the boom years, and that inventory overhang is taking time to absorb.
Buyers shopping for condos under $500,000 have meaningful selection and real negotiating power. That won't last indefinitely.
What to Expect Through 2026
The uneven recovery is likely to persist. Inner-city Ottawa will tighten first; suburbs will follow as interest rates decline and buyer confidence builds.
Source: Ottawa Business Journal / real estate market data
