Ottawa Housing Starts Drop Sharply in April
Ottawa housing starts saw a major slowdown in April, with local reports pointing to a 39% year-over-year decline compared to April 2025. The drop has raised fresh concern about whether the city can keep pace with long-term housing demand, even as thousands of units remain under construction across the region. A local report summarized by Ground News said Ottawa had a slow start to the year for new housing, while more than 17,000 units were still being built, based on Canada Mortgage and Housing Corporation data.
The April decline is important because housing starts measure projects that have actually begun construction. They are not just permits, promises or proposals. When starts fall, it can signal weaker future housing supply, especially if the trend continues over several months.
National Housing Starts Rose, But Ottawa Slowed
The Ottawa decline stands out because Canada’s national housing construction picture moved in the opposite direction in April. CMHC reported that the total monthly seasonally adjusted annual rate of housing starts for all areas in Canada increased 17% in April to 279,317 units, up from 239,747 units in March. CMHC also said the six-month trend increased 3.2% to 256,777 units.
However, national gains do not always reflect local conditions. Ottawa’s housing market has its own pressures, including construction costs, changing rental demand, high numbers of units already under construction, and weaker near-term population growth. That means a national rebound can happen at the same time Ottawa sees a local pullback.
Why Ottawa Housing Starts Matter
Housing starts are one of the clearest indicators of future supply. CMHC defines a housing start as the beginning of construction work on the building where the dwelling unit will be located, such as when the concrete footing has been poured or an equivalent stage has been reached.
For Ottawa residents, fewer starts today can mean fewer homes available in future years. This matters for renters, first-time buyers, families looking for larger homes, and policymakers trying to address affordability. A single slow month does not prove a long-term crisis, but a 39% April drop is still a warning sign that builders may be becoming more cautious.
CMHC Already Expected Ottawa Construction to Slow in 2026
The April numbers also fit with CMHC’s broader forecast for Ottawa. In its 2026 Housing Market Outlook, CMHC said the pace of housing starts in the Ottawa area was expected to slow in 2026 after reaching an exceptionally high level in 2025. It pointed to slower population growth and a high number of units already under construction as key reasons for the expected decline.
CMHC also noted that permits and approvals were already down compared with the same time last year, confirming the direction of its forecast for the Ottawa area. Apartments were expected to see the biggest slowdown, while condominium construction remained less attractive because of a lack of buyers and investors.
Apartments and Rental Projects Remain Central
Apartments continue to play a major role in Ottawa’s new housing pipeline. CMHC said apartments would still account for the largest share of starts in Ottawa, even though that share was expected to be lower than in 2025. Rental construction had gained momentum in 2025 because of improved financing conditions and support from different levels of government.
Still, the market is shifting. CMHC said the rental market in Ottawa is expected to soften more quickly than previously expected as population growth slows and more rental units are completed. A record number of rental units under construction are expected to enter the market, which could ease pressure on rents but also make developers more cautious about starting new projects.
Ottawa’s 2025 Boom Creates a Tough Comparison
Part of the April decline may reflect how strong construction activity was in 2025. CMHC’s Ottawa forecast table shows total housing starts in the Ottawa CMA reached 10,864 in 2025, up from 7,894 in 2024. For 2026, CMHC projected total starts between 7,700 and 9,500, suggesting a slowdown was already expected after last year’s high level.
This means the 39% April decline should be read carefully. It is a serious drop, but it also comes after a year when Ottawa saw unusually strong housing construction. The bigger question is whether the slowdown becomes a sustained trend or whether activity stabilizes later in the year.
What This Means for Buyers and Renters
For buyers, slower housing starts could eventually limit new-home choices, especially if fewer apartments, townhomes and family-sized units move into the pipeline. For renters, the picture is more mixed. More rental completions may help ease pressure in the short term, but fewer new starts could reduce future supply if demand rises again.
For builders, the decline reflects a more cautious environment. High construction costs, financing challenges, weaker condo demand and uncertainty about future absorption can all make developers delay projects.
Also Read About: Former Senior Diplomats Call for Tough Canadian Sanctions on Israel