Rental rates in Ottawa have seen a significant increase in 2018. The vacancy rate for Ottawa according to CMHC's Rental Market Report released for 2018 had Ottawa at a 1.6% vacancy rate. The average rent for Ottawa was $1,174 up 5.6% over the previous year.
Vacancy rates across the City have been similar across different types of rental types. The lowest vacancy rate being for bachelors units which has a 1.3% vacancy rate while two bedrooms have a vacancy rate of 1.8%.
Rental demand continues to be strong with condominium rentals offerings declining slightly while the demand for such units held steady. Ottawa's employment and population growth is supporting the overall housing demand we've been seeing lately.
Ontario has seen an increase of approximately 35,000 people in Q1 of 2018 largely due to the increase in inter-province and international migration. This is almost double the amount of Q1 2017. Immigration provides some of the increasing demand for rental accommodation as these people tend to rent for a few years before becoming homeowners.
The newest mortgage rules changes and rate increase has also been a contributor to the rental demand. Many young professionals are choosing to rent instead of buying, as home prices in the City of Ottawa continue to rise at a rapid pace.
A new report from Rentals.ca says that rents in Ottawa could continue to rise if Ottawa sees more growth in the job sector and more immigration. Ottawa should see rental prices increase by approximately 9% as the demand for rental units is not being met.