Housing starts in Ottawa dropped by 39 percent year-over-year in April 2026, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC). This significant decline highlights ongoing challenges in the city's housing market, including high interest rates and construction costs.
April Housing Data
The CMHC reported that the seasonally adjusted annual rate of housing starts in Ottawa fell to 8,500 units in April, down from 13,900 units in April 2025. The decrease was driven by a sharp drop in multi-unit starts, which fell by 45 percent, while single-detached starts declined by 10 percent.
Market Context
Industry experts attribute the slowdown to several factors, including higher borrowing costs, labor shortages, and rising material prices. Builders are also facing uncertainty due to changing regulations and market conditions. Despite the decline, demand for housing remains strong, with Ottawa's population continuing to grow.
The drop in housing starts is part of a broader trend across Canada. Nationally, housing starts in April were down 12 percent compared to the same month last year, though they increased slightly from March 2026. The CMHC noted that the pace of construction remains below what is needed to address housing affordability.
Outlook
Looking ahead, some analysts expect housing starts to recover gradually as interest rates stabilize and government initiatives take effect. However, challenges persist, and the market may take time to adjust. The City of Ottawa continues to work on policies to encourage development and increase housing supply.
