The Impact of Remote Work on Ottawa’s Economy and Real Estate Market
Remote work comes with many benefits, but it also brings new challenges — and Ottawa is a prime example. With more people working from home, fewer are commuting to offices, causing ripple effects across the city’s economy and real estate market.
Local businesses that once relied on office workers are seeing fewer customers, while demand for larger homes with home office space is growing. Many people are choosing to move away from the city center in search of more space and better living conditions.
In this blog, we’ll figure out the impact of remote work on Ottawa’s economy and real estate market and what it means for the city’s future.
How Remote Work is Changing Ottawa’s Economy
Here’s how remote work is changing Ottawa’s economy.
Shift in Employment Trends
Remote work has reduced the demand for office-based roles in Ottawa. Dan Close, Founder and CEO at We Buy Houses in Kentucky, says, “Jobs like administrative support and in-office assistants are no longer essential as companies shift to digital workflows. This change has led to fewer job openings for traditional office roles.”
At the same time, there’s been an increase in freelance, contract, and gig work. More people are offering services on platforms like Upwork and Fiverr, focusing on short-term, project-based jobs.
Roles in tech, digital marketing, and customer support are growing as companies seek workers who can operate remotely. These roles are now some of the most in-demand positions in Ottawa’s job market.
Impact on Local Businesses and Services
Local businesses near office hubs have been hit hard by remote work. Jimi Gecelter, CEO of Tradeit, says, “Cafes, restaurants, and retail shops that depended on office workers for daily sales are seeing fewer customers. Without daily foot traffic, many of these businesses are struggling to stay open.”
On the other hand, businesses related to e-commerce, delivery, and home services are seeing higher demand. Meal delivery platforms like Uber Eats and grocery services like Instacart are growing. At-home services, such as cleaning, home maintenance, and IT support, have become essential for remote workers who need help managing their home-based routines.
Co-working spaces are also growing. Instead of long-term office leases, businesses are renting short-term desks and private meeting spaces for hybrid workers. Co-working hubs now focus on offering flexible, pay-as-you-go options for teams that only meet in person on occasion.
Changes in Consumer Spending Habits
Remote work has shifted how people in Ottawa spend their money. Commuting costs, like gas, parking, and public transit fees, have dropped as more people work from home. Spending on work-related items like office clothes and daily lunches has also declined.
David Martinez, VP Enterprise & OEM Accounts at Cybernet Manufacturing, shares, “Spending has increased in areas like home office equipment. People are buying desks, chairs, and computer accessories to create functional workspaces at home. Demand for high-speed internet upgrades has also grown as remote work requires fast, reliable connections.”
Home entertainment spending is on the rise, too. People are investing in streaming services, video games, and home workout equipment. This shift has affected local businesses as demand for certain products and services increases, while others—like city-center retailers and office-related services—experience a drop in sales.
The Effect of Remote Work on Ottawa’s Real Estate Market
Here’s a closer look at how remote work is shaping Ottawa’s real estate market.
Shift in Housing Preferences
People used to choose homes based on how close they were to work. But with remote work, that’s no longer a priority. Instead, people now want homes that have more space, better layouts, and areas that can be used as home offices. Backyards, patios, and larger living rooms have also become more important.
This change has caused a shift from city apartments to suburban and rural homes. Khashayar Shahnazari, Chief Executive Officer at FinlyWealth, says, “Suburbs outside of Ottawa have seen more demand because people are willing to trade a longer commute (if they have to go in) for bigger, more affordable homes. Living outside the city is no longer seen as a “far away” option when you only have to go to the office a few times a month, if at all.”
Real estate developers have noticed this shift too. New home designs now include more flexible spaces that can be used as home offices, guest rooms, or play areas. This shift is also encouraging more people to renovate their existing homes, adding home offices, larger kitchens, and better outdoor spaces.
Price Trends in Ottawa’s Housing Market
The demand for larger suburban homes has driven up prices in areas outside of downtown Ottawa. Gerald Ming, SEO expert at Batik-America.com, says, “With so many people wanting bigger homes, competition has increased, leading to higher prices in the suburbs. Buyers are willing to pay more for houses with office space, extra bedrooms, and larger yards.”
On the flip side, the demand for downtown condos and apartments has dropped. Many people no longer feel the need to live near work, so they’re moving to bigger spaces further from the city center. This shift has slowed down price growth for downtown properties, and in some cases, prices have even dropped slightly.
For people trying to buy their first home, these price increases can be frustrating. With suburban home prices going up, it’s harder for first-time buyers to afford the down payment. It’s also more common to see bidding wars for suburban properties, making it even tougher for buyers to compete.
Changes in Rental Market Dynamics
The rental market in Ottawa has seen big changes since remote work became popular. Before, people rented apartments downtown to be close to work. But with fewer people needing to commute, demand for downtown rentals has dropped. This has left more units empty and forced landlords to lower rents or offer perks like free internet or free months of rent.
At the same time, rental demand has gone up for larger homes in the suburbs. Martin Seeley, Senior Sleep Expert of Mattress Company, mentions. “People who used to rent apartments downtown are now looking for rental homes with more space, backyards, and home offices. This has increased rental prices for townhouses and single-family homes outside the city.”
Landlords of short-term rental properties, like Airbnb units, are also facing challenges. With fewer business travelers and tourists, it’s harder to keep these units booked. Many landlords are switching from short-term rentals to long-term rentals to have a more stable income stream.
Demand for Home Renovations and Upgrades
With more people working from home, homeowners are rethinking their spaces. Many people are converting spare bedrooms, basements, and unused areas into home offices. Renovations that focus on workspaces have become a priority for homeowners.
Hamza G., Email Outreaching Expert at Outreaching.io, adds, “People are upgrading their internet connections, buying better Wi-Fi routers, and investing in “smart home” devices to make working from home more comfortable. This has driven up demand for products like ergonomic chairs, desks, soundproofing materials, and larger computer monitors.”
Home improvement services, like contractors and renovation companies, have seen a big increase in demand. People are also upgrading other parts of their homes, like kitchens, bathrooms, and outdoor areas, since they’re spending more time at home than ever before.
Impact on New Housing Developments
Builders and developers are rethinking how they design new homes. Instead of focusing on compact condos in city centers, they’re focusing on larger homes with extra space for home offices and multi-purpose rooms. Suburban developments have become a priority as more people move away from the city.
New homes are being designed with “flex spaces” — rooms that can be used as home offices, playrooms, or extra bedrooms. Outdoor spaces like patios, decks, and community green spaces have also become must-haves in new housing developments.
David Loo, Owner of Xpro Auto Glass, explains, “Some developers are also creating “live-work” communities, where neighborhoods include shared workspaces, cafes, and co-working hubs. These spaces let people work close to home without being stuck in their actual house all day.” It’s a way to support people who still want a change of scenery while working remotely.
Opportunities for Ottawa’s Future
Remote work has created new opportunities for Ottawa’s economy and real estate market. Let’s discuss these.
Growth in Suburban and Rural Housing Demand
With more people working from home, the demand for larger homes outside the city center has grown. This shift presents a big opportunity for real estate developers and home builders, says Bryan Dornan, Mortgage Lending Expert & Founder at RefiGuide.org. Suburban and rural areas around Ottawa are seeing an increase in people looking for homes with extra space for home offices, larger living areas, and backyards.
Developers can build homes that meet these new needs, such as properties with built-in office spaces, larger kitchens, and family-friendly layouts. This shift also presents an opportunity for smaller towns near Ottawa to grow, as more people move there in search of affordable, spacious homes.
Towns like Kanata, Orleans, and Stittsville are already seeing this trend, and there is room for further development in other nearby areas.
Increased Demand for Home Renovation Services
More people working from home means more people want to improve their living spaces. This is a major opportunity for renovation companies, interior designers, and home improvement stores.
Homeowners are converting spare rooms, basements, and even garages into home offices. They’re also upgrading their kitchens, bathrooms, and living areas as they spend more time at home.
One popular upgrade is the use of smart film on windows and glass partitions. This innovative technology allows homeowners to switch glass from clear to opaque with the push of a button, adding privacy and a modern touch to home offices and living spaces.
Businesses that offer renovation services, furniture, or home decor products can benefit from this demand. Stores that sell desks, chairs, office storage, and home tech products are already seeing a surge in sales.
Contractors, carpenters, and electricians also have more job opportunities as homeowners seek to create functional and comfortable workspaces. This trend isn’t going away anytime soon, especially as remote work becomes a permanent option for many employees.
Growth of Co-Working and Hybrid Workspaces
While traditional office spaces are seeing less demand, hybrid workspaces and co-working hubs are growing in popularity. Honghao Deng, CEO of Butlr, adds, “Many companies are adopting a “hybrid work” model where employees work remotely some days and go to the office on others. This has created a new opportunity for co-working spaces and shared offices that offer short-term, flexible work options.”
Instead of renting large office spaces, businesses are now leasing smaller, shared office hubs where employees can work together on specific days. WeWork and local co-working providers in Ottawa have a chance to expand their presence and offer flexible work solutions.
Building owners with vacant office space can also repurpose it as shared office hubs, turning empty properties into income-generating assets.
Rise in Local E-Commerce and Delivery Services
Since people are spending more time at home, they’re shopping online more than ever. This is a big opportunity for Ottawa-based e-commerce businesses. Local retailers that used to rely on foot traffic from office workers can now shift to online stores and offer home delivery. Tiffany Parra, Owner of FirePitSurplus.com, shares, “Businesses that embrace e-commerce can reach a larger customer base, sell 24/7, and reduce the need for physical store space.”
There’s also more demand for local delivery services. Companies like Uber Eats, DoorDash, and Instacart have seen significant growth. Local businesses can partner with these platforms or create their own delivery services. For example, grocery stores, pharmacies, and boutique retailers can offer same-day delivery to compete with larger companies like Amazon.Tech Startups and Remote Work Software
Ottawa is already known as a tech hub, and the remote work boom has created even more opportunities for local tech companies. Businesses and employees need better tools for remote collaboration, video calls, and project management. This is a chance for Ottawa-based startups to create new software, apps, and tools that support remote teams, says Gerald Chan, Founder of CROagency.net.
Companies that develop tools for video conferencing, task tracking, or employee wellness can meet the growing demand for remote work solutions. Ottawa has a strong tech community, with companies like Shopify leading the way. Startups and software developers can take advantage of this trend by creating solutions for remote work challenges.
There’s also a need for cybersecurity services. As more businesses operate online, protecting sensitive data becomes a priority. Local cybersecurity firms in Ottawa have an opportunity to provide protection for companies, especially smaller businesses that may not have strong security measures in place.
Conclusion
Remote work has brought big changes to Ottawa’s economy and real estate market. More people are working from home, which has reduced demand for office spaces, changed how local businesses operate, and shifted housing needs.
Suburban areas are seeing more people move in as families look for bigger homes with extra space for home offices. Meanwhile, downtown apartments and commercial spaces are facing lower demand, forcing landlords and business owners to adapt.
But with change comes opportunity. Home renovation businesses, e-commerce stores, and remote work software companies are seeing growth. Ottawa’s future will be shaped by how well businesses, developers, and communities adjust to these new trends.
Photo: JoaoBarcelos, iStock