Ottawa to Receive More Than 1,100 New Rental Units: Eight Projects Approved Under Build Canada Homes
Eight new housing projects have been approved in Ottawa, bringing more than 1,100 new rental units to the city. Prime Minister Mark Carney announced the projects on April 23 during a visit to the Geyser Place site in Barrhaven, where 118 apartments are planned. The projects are part of the federal-municipal Build Canada Homes partnership, aimed at accelerating the construction of affordable housing.
The agreement, first announced in December 2025, originally included funding for about 1,000 non-market housing units. The federal government now says that target has been exceeded by almost 10%. Overall, the partnership with the city is expected to result in up to 3,000 new mixed-housing homes and apartments, including affordable housing.
Ottawa City Council approved the agreement on April 22. To reduce construction costs and speed up the process, the city is exempting Build Canada Homes projects from several fees, including development charges, planning fees, building permit fees, and cash-in-lieu of parkland payments. According to the federal government, a separate agreement with Ontario to reduce municipal charges could lower the cost of building a two-bedroom apartment in Ottawa by more than $15,000.
The new projects will be located in different parts of the city, including Sandy Hill, Barrhaven, Heatherington, Overbrook, Centretown, Lincoln Heights, and other neighbourhoods. The largest sites are 384 Arlington Avenue, where 296 units are planned, and 2475 Regina Street, where 266 units are expected. Other addresses include Beausoleil Drive, Capilano Drive, Presland Road, and Hickory Street. Most projects are expected to begin construction in 2026, with some scheduled for spring or early 2027.
The context is important for Ottawa: according to CMHC, Canada’s national pace of housing starts fell by 6% in March 2026 compared with February, although actual housing starts in major centres were 10% higher than a year earlier. CMHC also warns that Ontario is expected to see weak new construction activity in 2026 because of high costs and low condominium pre-sales.
That is why projects like these are especially important: the market alone is not solving the affordability crisis, and without the participation of government, municipalities, and the non-profit sector, the problem is unlikely to be resolved quickly.