How Does Ottawa Real Estate Compare To The Rest Of Canada?
It has been estimated that Ottawa's hot real estate market will slowly cool down in 2022 due to rising interest rates. However, the prices for Ottawa houses for sale will likely continue to grow.
According to Canada Mortgage and Housing Corporation, supply constraints may limit the number of property sales in the country's capital this year; however, the real estate market will stay solid enough to drive prices for condos, townhouses, and duplexes.
Predictions suggest around 20,000 houses will be sold in Ottawa this year compared to 20,625 sold in 2021. Nevertheless, average house prices may hit $750,000 in 2022, up from $648,099 in 2021.
How Ottawa Compares to Other Major Canadian Cities
Ottawa has been of considerable interest to those searching for a place to live and work, mainly because it has become one of the most affordable cities in Canada. In fact, it is no wonder those born there choose to stay, and people from across Canada decide to make Ottawa their home.
Regarding food, Ottawa has about the same cost as Toronto, Montreal, and Calgary. According to Expatistan, Ottawa is 13% less expensive than Toronto, around 12% cheaper than Vancouver, British Columbia, and 7% cheaper than Calgary. Only in Vancouver will you most likely spend 10% more on food.
The real estate market is an area that is a good deal less expensive than in other cities. The most expensive cities in the country are Toronto and Vancouver, with an average home price above $1M. They are both ranked as the country's hottest and most expensive housing markets. On the other hand, in Ottawa, the average sale price for a condo is $470,000, while the average sale price for a residential-class property is around $820,000.
According to Numbeo, as of November 2021, the cost of living ranks as follows (from highest to lowest):
Toronto
Vancouver
Mississauga
Victoria
Brampton
Ottawa
Calgary
Montreal
Surrey
Kelowna
Kitchener
London
Ottawa Housing Market Statistics
Looking at other Canadian cities, February 2022 was the first time the average Toronto home prices were higher than the average Vancouver home price since 1991. Moreover, Hamilton's housing market has seen an increase of 21% yearly, while Brampton has had a 23% annual increase in average home prices.
The number of home sales has decreased compared to last year, with 1,889 homes sold in April 2022, a decrease of 21% compared to April 2021. On the other hand, despite the 55% increase in average home prices in the last two years, home prices remain considerably lower in Ottawa than in Vancouver, Toronto, and Hamilton's real estate markets.
Most homes can be purchased for under $1M and may be eligible for a minimum down payment of 5% to 10%. Ottawa's housing market is, nonetheless, slightly expensive compared to Montreal and Calgary housing markets. Moreover, Ottawa is very expensive compared to Winnipeg and Edmonton.
The renting scenario shows a very similar image, with higher rental prices in Toronto, Vancouver, and Hamilton.
How Ottawa Ranks in Affordability Compared to Other Canadian Cities
The reigniting of the tech industry and having the Federal Government as a large employer has made Ottawa an exciting place to develop a career and raise a family.
Median Household Income
Regarding salaries, recent StatCan studies show clear evidence of not just competitive wages in Ottawa, but some of the best Canada has to offer. By 2016, Ottawa ranked above Toronto and Vancouver for median household income and slightly behind Calgary. The average household income in Ottawa is $85,981 per year; in Vancouver it is $84,850; in Calgary it is $105,060.
Clothing
Once we're diving into the numbers, it turns out that clothing is about 10% cheaper in Ottawa than in Toronto, 11% cheaper than in Montreal, and 13% more than in Calgary. When it comes to sneakers, you'll be surprised to hear that Ottawa has the highest costs.
Fuel Prices
When discussing affordability ranking, one must consider fuel prices. Over the last years, we've seen considerable increases worldwide, affecting everything from commuter costs to public transportation. However, Ottawa is doing well compared to other significant Canadian cities, as fuel prices are slightly below Calgary and Toronto. Fuel in Ottawa is .28¢ cheaper per liter than in Vancouver.
