Average Home Prices in Ottawa Neighbourhoods: 2026 Update

Ottawa Home Prices in 2026: An Overview

After several years of volatility, the Ottawa housing market is showing signs of stabilising in 2026. According to the latest data from the Ottawa Real Estate Board (OREB), the average home sale price in Ottawa decreased by 1.0% year-over-year and increased by 1.3% month-over-month to $721,270 in May 2026. This mixed movement reflects a market that is finding its footing after a period of rapid change.

Other sources report slightly different figures. The average selling price of a home in Ottawa decreased by 0.6% year-over-year to $635,300 in May 2026, according to a separate industry report. These discrepancies often arise from differences in how “average home price” is calculated, some include all property types, while others focus on single-family homes or use different weighting methods. For buyers and sellers, it is helpful to look at multiple data points to get a full picture of the market.

Looking at the broader context, the Canadian Real Estate Association (CREA) has updated its forecasts for 2026 and 2027. CREA now expects the national average home price in 2026 to increase by only 1.5% to $688,955, and for 2027 to edge up by 0.9% to $695,094. While these are national figures, Ottawa’s market often follows similar trends, though local factors such as government employment and technology sectors play a significant role.

Price Trends by Housing Type

Prices vary considerably depending on the type of home. The table below shows average prices for different housing types in Ottawa as of May 2026, based on data from local market updates.

Single-detached homes remain the most expensive segment, averaging nearly $950,000. Townhouses and row homes offer a more affordable entry point, while condominiums remain the most budget-friendly option. For first-time buyers, condos and townhouses in emerging neighbourhoods may provide better value, especially as interest rates have paused at 2.25% by the Bank of Canada.

It is also instructive to compare year-over-year changes. In January 2025, the average home price across all types was $655,141, while in January 2026 it dropped to $622,044. This 5% decline in the early part of the year suggests that buyers had more negotiating power going into 2026, though the spring market has since added some upward momentum.

How Ottawa Neighbourhoods Compare

While the citywide averages provide a useful benchmark, neighbourhood-level prices can differ significantly. In general, central Ottawa neighbourhoods such as the Glebe, Old Ottawa South, and Westboro command higher prices due to their proximity to downtown amenities and the Rideau Canal. Suburban areas like Barrhaven, Orleans, and Kanata tend to be more affordable, especially for single-family homes.

According to the Royal LePage 2026 Market Survey, the aggregate price for a home in Ottawa is expected to increase two per cent by the end of 2026. This modest growth is supported by steady demand from both first-time buyers and families looking for more space. Neighbourhoods with good schools, parks, and transit access are particularly attractive. For example, communities along the O-Train lines have seen sustained interest from buyers who commute downtown.

Sandi Branker, a trusted Ottawa REALTOR® with Zolo Realty, notes that clients often ask about which areas offer the best value. “Neighbourhoods like Hintonburg and Mechanicsville have undergone significant revitalisation in recent years, making them popular among young professionals,” she says. “Meanwhile, suburban communities such as Stittsville and Riverside South continue to attract families seeking larger properties at comparatively lower prices.”

If you are considering a move, it is wise to research recent sale prices in your target neighbourhood. Real estate platforms like HousesForSaleOttawa.ca provide interactive map searches and real-time MLS® listings, making it easier to compare prices across different parts of the city.

Market Outlook for 2026 and Beyond

Canada Mortgage and Housing Corporation (CMHC) has released its Housing Market Outlook for 2026, forecasting that home prices will stabilise in 2026, with slight increases possible. In 2027 and 2028, housing starts in the Ottawa area will remain in line with levels observed in recent years. This suggests that supply constraints will continue to exert upward pressure on prices, though not at the double-digit pace seen during the pandemic.

CREA’s quarterly forecasts also highlight the role of pent-up demand, particularly from first-time home buyers who have been shut out of the market over the past four years. As mortgage rates begin to ease from their recent highs, more buyers are expected to re-enter the market. This aligns with the Royal LePage projection of a two per cent price increase by late 2026.

However, affordability remains a challenge. Even with price stabilisation, the average home in Ottawa still requires a substantial down payment and mortgage qualification. The national average home price of $688,955 in 2026 means that many households need dual incomes to enter the market. First-time buyers should explore programs like the First Home Savings Account (FHSA) and consider working with a REALTOR® who understands local conditions.

Will Prices Rise or Fall in 2027?

Looking ahead to 2027, CREA forecasts that the national average home price will edge up by 0.9% to $695,094. Gains are expected to be held below inflation across the board, meaning that real price increases will be modest. For Ottawa, the CMHC outlook suggests that home prices may increase slightly, but any upward movement will be tempered by continued affordability constraints. While a sharp drop in prices is unlikely, buyers should not expect rapid appreciation either. The market appears to be entering a period of slow, steady growth.

Key Takeaways for Buyers and Sellers

If you are looking to buy or sell in Ottawa in 2026, here are a few points to keep in mind:

• Average home prices have stabilised after a decline in early 2026, with the May 2026 average sitting at $721,270 (or $635,300 depending on data source).
• Single-detached homes are the most expensive segment, while condos offer more affordable entry points.
• Neighbourhood choice matters, central areas like the Glebe and Westboro are pricier, while suburbs such as Barrhaven and Orleans offer better value.
• Interest rates have paused at 2.25%, providing some relief for variable-rate mortgage holders.
• Forecasts from CREA, CMHC, and Royal LePage all point to modest price growth in 2026 and 2027, likely below 3% per year.

Working with a local expert like Sandi Branker can help you navigate these nuanced conditions. Sandi provides clear guidance, strong negotiation skills, and personalised service to make every move seamless and successful.

Frequently Asked Questions

Will Ottawa home prices go up in 2026?

Yes, most forecasts indicate that Ottawa home prices will increase slightly in 2026. The Royal LePage 2026 Market Survey expects a two per cent rise by the end of the year. CREA’s revised forecast also predicts national average price growth of 1.5% in 2026. However, individual neighbourhoods may see different trends depending on local supply and demand.

What is the average home price in Ottawa in 2026?

The average home sale price in Ottawa was $721,270 in May 2026, according to the WOWA.ca report. Another source reported an average selling price of $635,300 for the same month. The variation is due to different methodologies, for example, including or excluding certain property types. It is best to use multiple sources when assessing the market.

Are home prices expected to go down in Ottawa in 2027?

Forecasts suggest that home prices in Ottawa are not expected to go down in 2027. CREA projects the national average home price will edge up by 0.9% to $695,094 in 2027. CMHC also indicates that prices will stabilise with slight increases possible. Any downturn would likely require a major economic shock, which is not currently anticipated.

Which Ottawa neighbourhoods have the most affordable homes in 2026?

Affordable neighbourhoods in Ottawa typically include suburban areas such as Barrhaven, Orleans, Kanata, and Stittsville. Condos in these communities can be found for under $500,000, while townhouses often range from $600,000 to $700,000. For buyers looking closer to downtown, areas like Carlington and Overbrook offer relatively lower prices compared to the Glebe or Westboro.

Whether you are a first-time buyer, a growing family, or an investor, staying informed about average home prices in Ottawa neighbourhoods is essential. By following the latest data and expert forecasts, you can make confident decisions in this evolving market. For personalised guidance, contact Sandi Branker at Zolo Realty and explore real-time listings on HousesForSaleOttawa.ca.