Ottawa home prices to rise 2% by end of 2026, report says

Un ménage doit gagner un revenu minimal de 122 440$ pour être capable d'acheter une maison à Ottawa. (Sean Kilpatrick | La Presse canadienne)

Home prices in Ottawa are expected to rise two per cent by the end of 2026, as the housing market returns to more “typical levels,” according to a new report.

The Royal LePage 2026 Market Survey says the aggregate price for a home in Ottawa is expected to increase two per cent in the fourth quarter of next year to $788,970.

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The report says the median price for a single-family detached home will increase 3.5 per cent to $907,488, while the median price of a condominium is forecast to rise one per cent to $408,646.

“Looking ahead to next year, we expect activity in the Ottawa housing market to return to more typical levels, with prices increasing by low single digits,” Jason Ralph, president and broker of record with Royal LePage Team Realty, said in a statement.

“Sales activity should follow a more cyclical rhythm – a brisk spring market, a slowdown during the summer months as families take vacations, and another boost after Labour Day,"

Ralph said Ottawa has seen a jump in buyer demand following several interest rate cuts by the Bank of Canada.

Royal LePage says it doesn’t expect possible job cuts to the federal public service in 2026 to cause a “dramatically negative impact” on the housing market.

“Most of these changes are expected to occur through attrition and retirement, which could, in fact, lead to a modest boost in recreational property sales, as some homeowners transition into new lifestyles,” Ralph said. “Both buyers and sellers are adjusting their expectations to reflect market realities. Overall, Ottawa’s real estate economy continues to prove its stability and resilience. With increasing demand, steady prices, and a market environment that remains fundamentally healthy, we expect to see continued strength through 2026.”

Across Canada, housing prices are expected to rise one per cent to an average of $823,016 by the fourth quarter of 2026.

Housing prices are expected to increase five per cent in Montreal, while the aggregate price for homes in Toronto is expected to drop by 4.5 per cent to $1.054,129.