One housing type dominates a record-breaking year
The Ottawa Census Metropolitan Area (CMA) saw a significant resurgence in new housing sales in 2024, with a 75% increase in multi-family unit sales compared to 2023, according to a recent report by Zonda Urban.
This growth was primarily driven by a sharp rise in the demand for townhouses, with 1,997 units sold in 2024, marking a 72% year-over-year increase. Sales momentum peaked in the fourth quarter, during which 858 new townhouses were sold — an 84% increase from the same period in 2023.
The west and southwest regions of Ottawa, particularly Barrhaven and Stittsville, accounted for more than half of all townhouse sales in 2024, while Kanata and Orleans captured an additional quarter of the market activity.
Affordability emerged as a key factor fuelling this market growth. Stacked townhouses, which accounted for nearly half of the new townhouse inventory, sold at an average price of $387,150, offering an average unit size of 1,066 sq ft. In contrast, traditional townhouses averaged $588,334, with a more spacious 1,801 sq ft.
The demand for townhouses outpaced that of new condominium apartments, which, despite a 204% year-over-year increase in sales, remained a small segment of the market. Only 82 new condominium apartments sold in 2024, leaving 225 units unsold at the end of the year.
Zonda Urban highlighted a strategic shift by developers in late 2023, which contributed to the rebound. “Ground-related townhouses really are the engine of this market,” said Pauline Lierman, vice president of market research at Zonda Urban. She noted that developers adjusted their pricing and product offerings, focusing on compact and more affordable townhouse options to meet buyer demand.
Fourteen new townhouse developments launched in 2024, with a 67% absorption rate of released units by the end of the year. The average price of newly launched townhouses stood at $490,963.
The report anticipates that the strong demand for townhouses will continue into 2025, driven by relatively affordable price points and the ongoing appeal of suburban communities in Ottawa.
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