1. Commercial and Industrial Sector Overview

• Multi-Family Sector: Despite a 15% decrease in transaction volume to $898 million, the multi-family sector remained relatively stable.
• Office Sector: The sharp decline of 34% in transactions to $527 million reflects the ongoing impact of remote work trends on office space demand.
• Retail Sector: With a 51% decrease in transactions totaling $197 million, the retail sector continues to face challenges due to shifting consumer preferences and online shopping.
• Industrial Sector: The significant 75% decline in transaction volume to $210 million underscores challenges in the industrial market, possibly influenced by supply chain disruptions and economic uncertainties.

2. Rental Market Insights

• Median Rent: At $2,100, the median rent for all bedroom counts and property types remained relatively high, reflecting the overall demand for rental housing in Ottawa.
• Vacancy Rates: The tight rental market with a vacancy rate of 2.1% in the Ontario portion of Ottawa-Gatineau highlights the limited availability of rental units, posing challenges for renters.
• Price Increase: Rental costs saw a significant rise, outpacing income growth and making it increasingly difficult for tenants to afford suitable housing options.
• Regional Variations: Areas with lower rental rates experienced the most significant drops in vacancy rates, indicating higher demand for affordable housing options in these neighborhoods.
• Demand Drivers: Factors such as high international migration, coupled with challenges in homeownership affordability, continue to drive demand for rental properties in Ottawa.

3. Residential Real Estate Trends

• Home Sales: Despite a 10% increase compared to March 2023, home sales remained below historical averages, reflecting market uncertainties and affordability concerns.
• Average Selling Price: The rise to $682,078 indicates persistent demand and limited supply, contributing to price appreciation in the residential market.
• Sales Volume: With a 15.6% increase in sales volume to $794.6 million, March 2024 saw robust activity in the residential real estate market.
• New Listings: The 13.5% increase in new listings suggests growing seller confidence, potentially offering more options for homebuyers in the market.
• Inventory Levels: Despite an 18.3% increase in active residential listings, the relatively low months of inventory at 2.2 months indicate a seller’s market, with limited supply compared to demand.

These detailed insights provide stakeholders with a deeper understanding of the Ottawa real estate market dynamics, enabling informed decision-making and strategic planning in the current landscape.