Ottawa Bucks Trend Of Slow Home Sales With 72% Spike In Townhomes

In a notable shift from the national trend of slowing home sales, Ottawa has experienced a significant surge in townhome purchases. According to real estate analytics firm Zonda Urban, multi-family unit sales in Canada's capital grew by 75% between 2023 and 2024, totaling 2,079 sales. This increase was overwhelmingly driven by new townhome sales, which saw a 72% year-over-year rise, accounting for 1,997 of the total multi-family units sold.

The final quarter of 2024 was particularly robust, with approximately 858 new townhomes sold, marking an 84% annual jump. In contrast, condominium apartments lagged behind, with only 82 sales during the same period. Despite a 204% year-over-year increase in condo sales, the market remains sluggish, evidenced by a standing inventory of 225 unsold units.

Pauline Lierman, Vice President of Market Research at Zonda Urban, noted that while cities like Toronto and Vancouver see entry-level buyers gravitating towards condominium apartments, Ottawa's market differs. "In Toronto and Vancouver, your entry-level housing tends to be condominium apartments, but in Ottawa, it's never been a huge growth node," Lierman explained. The ample availability of townhomes in Ottawa offers more space, making them a preferred choice for many buyers.

Several master-planned communities in Ottawa's west and southwest regions have significantly contributed to this uptick in townhome sales. Developments in areas like Barrhaven and Stittsville accounted for 52% of all 2024 townhouse sales, with an additional 25% of activity occurring in Kanata and Orleans. These suburban growth areas boast new shopping centers and are benefiting from the expansion of the city's Light Rail Transit (LRT) system, enhancing their appeal to potential buyers.

Affordability and investment potential further boost the desirability of townhomes. Paul Czan, President of the Ottawa Real Estate Board, emphasized that townhome prices make them an ideal option for first-time buyers. "If we're comparing them to a condo, the price is about 30% higher, and if the first-time buyer is looking to get into the market, a townhome is a much better value product than a condo would be for them," Czan stated.

Developers are responding to this increased demand by adjusting their projects accordingly. Kevin O'Shea, Division President in Ottawa for Mattamy Homes, shared that in many suburban communities, especially in the South End and West End, they are modifying approved subdivision plans to introduce more townhomes. This proactive approach aims to meet the growing preference for townhome living in Ottawa.