Where to find the cheapest homes in Ottawa

Ottawa's housing prices have been on an uptrend lately, but the city remains more affordable than most of the major markets in Canada, according to a study by RE/MAX.

Vanier, Carlington, and Beaconville South are the most affordable neighbourhoods in the city, making them attractive for cost-conscious homebuyers. On the other hand, Westboro, Rockliffe Park, and Alta Vista are the city’s most expensive markets for first-home buyers, according to the study.

Ottawa is slated to record a 6% increase in dwelling prices this year, following its strong 11.7% growth last year.

Despite its recent growth, Ottawa still ranked sixth of the 16 Canadian cities when it comes to affordability. RE/MAX classifies the city as "moderately affordable", with average households needing to spend less than 20% of their income for a mortgage.

Unlike many regions across Canada, Ottawa is one of the cities that are accurately valued. In 2019, the city recorded an average sale price of $441,693.

However, first-home buyers in the city go after homes below the average sale price. In fact, condominiums and townhomes, which could have a price tag ranging from $200,000 to $350,000, remain the popular housing options for this segment.

Still, some first-home buyers in Ottawa struggle to enter the market due to the mortgage stress test, which prevents them from securing a home loan, RE/MAX said.

To help them afford a mortgage, first-home buyers in the city often depend on their parents for financial support. This has led to an increase in multi-generational homeownership in the city, according to the study.

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