New data from the Canada Mortgage and Housing Corporation (CMHC) reveals a significant surge in residential construction activity in the nation's capital. Housing starts in Ottawa climbed by a remarkable 38% in 2025, dramatically outpacing the national average and signaling a robust period of development for the city.
A National Trend with a Local Surge
While the national picture showed healthy growth, with housing starts across Canada totalling 259,028 units in 2025—a 5.6% increase from the previous year—Ottawa's performance was notably stronger. The capital's 38% year-over-year jump points to specific local drivers and a heightened focus on addressing housing supply needs in the region. This data, released in January 2026, provides a clear snapshot of construction activity for the completed calendar year.
Context and Contributing Factors
The substantial increase in Ottawa can be attributed to several converging factors. Persistent demand for housing, coupled with municipal initiatives aimed at streamlining development approvals, has likely contributed to the accelerated pace. Furthermore, federal government policies and investments targeting housing supply may have had a pronounced effect in the capital region. This boom in ground-breaking for new residential projects, encompassing both single-family homes and multi-unit buildings, represents a critical response to the ongoing housing challenges faced in many Canadian urban centres.
Implications for Ottawa's Future
The surge in housing starts is a positive indicator for increasing the overall housing stock in Ottawa. However, experts will be watching closely to see if this level of activity can be sustained and how it translates into completed, move-in-ready homes. The data suggests a strong vote of confidence from developers in the Ottawa market's fundamentals. As these projects progress from construction starts to completions, they are expected to provide more options for buyers and renters, potentially easing some of the pressure in the city's tight real estate market.
The CMHC report, which highlighted the national figures, serves as a key benchmark for the health of Canada's construction sector. Ottawa's standout performance within that report underscores its dynamic growth and the ongoing transformation of its urban landscape.
