Most Ottawa homeowners treat a municipal election as a vote about garbage pickup, potholes and the tax bill. This term, city council voted to take $33,787 off the cost of a new home outside the Greenbelt, and rewrote what you are allowed to build on your own lot. Council approved that fee cut on 15 July 2026, and both decisions are in force today.
That is what the Ottawa municipal election means for housing. The council elected on 26 October inherits levers that have already moved real money, and almost everything you will read between now and then is about who is running rather than what the job actually controls.
Housing is not a side issue for Ottawa voters. Research conducted by Abacus Data for the Ottawa Real Estate Board (OREB) in December 2025 found that 37 per cent of residents name cost of living as the most important issue facing the city, with housing affordability second at 19 per cent. Eighty two per cent said housing related issues would matter in deciding who they support.
Our team brings decades of combined Ottawa real estate experience, and we watch council decisions show up in client files months later. This is one of those moments where the gap between what council did and what buyers know is unusually wide.
Buying a new build this fall? There is one question in this piece worth asking your builder in writing before you sign. Call us at 613-558-3294 if you want help framing it.
What does the Ottawa municipal election mean for housing?
The Ottawa municipal election on 26 October decides who controls four housing levers: development charges on new homes, the zoning rules that set what can be built, the property tax rate, and the infrastructure that makes new neighbourhoods possible. The outgoing council used all four, and those decisions carry into the next term.
None of this is abstract. Two of the four moved by a large enough margin this year to change what a buyer pays and what an owner can legally do with their property. The next council can extend those changes, reverse them, or let them expire on a schedule that is already set.
The $33,787 decision most Ottawa buyers have not heard about
A development charge is a one time fee the city levies on a new home to help pay for the roads, sewers, transit and parks that growth requires. Builders do not absorb it. It lands in the purchase price.
On 15 July 2026, council approved cutting residential development charges by 54 per cent. For a single family home outside the Greenbelt, the fee falls from $62,568 to $28,781, a drop of $33,787. In exchange, the city receives $478 million in federal and provincial infrastructure funding through the Development Charge Reduction Program (DCRP).
Two details matter more than the headline. The reduction applies retroactively to 1 January 2026, so it reaches homes already in progress this year. And the city committed to hold it until 30 March 2029, which places the expiry squarely inside the next council's term.
The funding is tied to named projects: widening Brian Coburn Boulevard in the east and Carp Road in the west, sewer and pump station work, intersection improvements, and an expansion of the Bowesville park and ride. If you are buying in Orleans, or watching commute times in the south end, that is your road budget. Our Orleans guide covers the area in detail.
Here is the part that runs against the usual assumption. Ottawa readers import a lot of framing from Toronto coverage, where development charges on a detached home have run far higher. The City's own staff report notes that Ottawa already levied some of the lowest residential development charge rates in Ontario before this cut. Ottawa was the cheap end of the province, and then went further than the program required, since the DCRP asked for 30 to 50 per cent and staff recommended 54.
For the fuller picture of what sits inside the price of a new Ottawa home, we covered the cost pressures building Ottawa homes separately. Stack this against Ontario's HST removal on new homes and the two together are the largest reduction in new build cost Ottawa buyers have seen in years.
Can you build four units on an Ottawa lot now?
In most cases yes. Ottawa's new Zoning By-law 2026-50 permits up to four dwelling units as of right on a serviced residential lot, which means no rezoning application. It also removes minimum parking requirements across the urban and suburban parts of the city. Council approved it on 28 January 2026 and enacted it on 11 March 2026.
The status is more layered than most coverage suggests. Twenty five appeals were filed. On 2 July 2026 the Ontario Land Tribunal (OLT) ordered that the portions not under appeal may come into force, retroactive to 11 March, so the majority of the by-law now governs. For anything still under appeal, the most restrictive provisions of the old and new by-laws both apply until the Tribunal resolves it.
The by-law also replaced the old residential zones with a neighbourhood zone structure graded by scale rather than by building type. Under the old rules, a lot zoned for a detached house usually needed a rezoning before it could hold anything else.
What we tell owners who ask: permitted is not the same as buildable. A Barrhaven lot with generous frontage and full services is a different proposition from a 25 foot inner city lot, where servicing and setbacks cap what fits long before the unit count does. Our Barrhaven guide covers the housing stock there. Before you plan anything, confirm the zone for your specific address with the City and check whether the provision you are relying on is among those still under appeal.
How much did Ottawa property taxes go up in 2026?
The 2026 City of Ottawa budget carries a 3.75 per cent property tax increase, adding about $166 to the average annual bill. On a home assessed at $415,000, that breaks down as $56 more for city services, $36 more for police and $74 more for transit. Water and wastewater rates rose 4.5 per cent, roughly $47.30 for a connected single family home, and the solid waste fee added $24.
Set beside the development charge cut, the pattern is worth seeing clearly. Council reduced the upfront cost of building a new home while raising the recurring cost of owning any home. Those are two different levers pulling on two different groups, and the same council controls both.
Curious why Ottawa homes cost what they do? We broke down the development charges, labour and land costs behind the price tag in The Hidden Costs Building Ottawa Homes.
The four levers the next council controls
| Lever | What council did this term | Who it affects | When the next council decides |
|---|---|---|---|
| Development charges | Cut residential rates 54 per cent, approved 15 July 2026, retroactive to 1 January 2026 | New build buyers and builders | Commitment runs to 30 March 2029, inside the next term |
| Zoning | Zoning By-law 2026-50 enacted 11 March 2026: four units as of right, parking minimums removed | Owners, small builders, investors | Twenty five appeals still before the OLT; council can also amend |
| Property tax and rates | 3.75 per cent increase in the 2026 budget, plus water and waste fee increases | Every Ottawa property owner | Every annual budget, starting with 2027 |
| Growth infrastructure | Secured $478 million tied to named road, sewer and transit projects | Suburban buyers and commuters | Delivery milestones run across the next term |
What the Ottawa municipal election means for your next move
For buyers, the practical question is whether the home you are considering is priced against the old development charge or the new one. Ask the builder directly, in writing, which rate applied to your agreement of purchase and sale, and whether the retroactive reduction has been credited.
For owners thinking about a secondary unit, the zoning question is now about your specific lot rather than about whether the city permits it in principle. That is a real change from two years ago.
For sellers, the context is a market that softened in volume without giving up much on price. According to OREB, Ottawa recorded 1,010 sales in September 2026, down 6.6 per cent year over year, while the average sale price held at $685,640, within one per cent of where it sat in July. Buyers have more time and more choice than they did a year ago, and we see that in how our listings are being shopped this fall. The full breakdown is in our September market update.
Voting day is 26 October. Advance voting ran 1 to 4 October. All but two of the 25 members of council are seeking re-election, so most of these decisions will be defended or revisited by the people who made them.
The Ottawa municipal election matters for housing because the council you elect sets the fees on new homes, the rules for what gets built, and the tax rate on what you already own. Two of those three moved significantly this year. The third moves every budget season. Whatever you decide on 26 October, decide it knowing which lever you are pulling.
Council decisions do not feel like real estate until they show up on your closing statement.
Planning a move before or after the vote? Start with our Ottawa mortgage and closing calculator, then book a conversation.
Frequently asked questions
Is Ottawa really cutting development charges by 54 per cent?
Yes. Ottawa City Council approved a 54 per cent reduction in residential development charges on 15 July 2026, taking the fee on a single family home outside the Greenbelt from $62,568 to $28,781. The city receives $478 million in federal and provincial infrastructure funding in return, and committed to hold the reduction until 30 March 2029. It applies retroactively to 1 January 2026.
Can I build four units on my Ottawa property?
Ottawa's Zoning By-law 2026-50 permits up to four dwelling units as of right on a serviced residential lot, with no rezoning required. Whether four units actually fit depends on your lot's frontage, servicing, setbacks and neighbourhood zone. Twenty five appeals remain before the Ontario Land Tribunal, so confirm your address and the specific provision with the City before planning anything.
How much is Ottawa's 2026 property tax increase?
The 2026 City of Ottawa budget includes a 3.75 per cent property tax increase, about $166 on the average annual bill. A home assessed at $415,000 pays roughly $56 more for city services, $36 more for police and $74 more for transit. Water and wastewater rates rose 4.5 per cent, and the solid waste fee increased by $24.
When is the Ottawa municipal election?
Voting day is Monday 26 October 2026, with advance voting having run from 1 to 4 October. Ottawa residents elect a mayor, councillors in 24 wards, and trustees for the four school boards. All but two of the 25 current members of council are seeking re-election, so most housing decisions made this term will be defended by the people who made them.
Does the city or the province control Ottawa's housing rules?
Both, at different layers. The province sets the framework through the Planning Act and provincial housing legislation, and the Ontario Land Tribunal (OLT) hears zoning appeals. The city sets the zoning by-law, development charges and property tax rate within that framework. Ottawa's four unit permission, for example, goes beyond the provincial minimum of three.
Will the development charge cut lower the price of an existing home?
No. Development charges apply to new construction, so the reduction affects new build pricing rather than resale. The indirect effect is on supply: city staff estimated the cuts could support roughly 12,000 additional homes per year. More new supply can ease pressure on resale prices over time, though nothing about that timing is certain.
Sources: City of Ottawa, New Zoning By-law; City of Ottawa, key dates for the 2026 municipal elections; Ottawa Real Estate Board, housing and affordability in the 2026 municipal election; City of Ottawa 2026 budget.
Published by The Campbell-Maric Group, an Ottawa real estate team at eXp Realty serving buyers, sellers, and investors across the National Capital Region. We cover market conditions, buying and selling strategy, neighbourhood guides, and Ontario regulatory changes, written for people who want to make informed real estate decisions. Reach us at yourhomeinottawa.ca or 613-558-3294.
