An improving housing market that nevertheless faces challenges, continued issues with affordability, an infusion of rich colours, and designing with intent: we’ve canvassed experts in the industry to find out what 2025 trends we can expect to see in Ottawa homes. Here’s what they had to say.
Housing market
There are signs of improvement in both the new-home and resale markets, but things remain unsettled.
By November 2024 — the most recent month for which numbers are available — sales were once again reaching typical monthly levels, although accumulated sales for the year were still slightly below average.
“Although 2024 sales may not blow the doors off the sales performance of previous years, the market is going in the right direction,” says Cheryl Rice, president of the Ottawa division of industry analyst PMA Brethour Realty, which prepares monthly market reports on behalf of the Greater Ottawa Home Builders’ Association.
“A general expectation was that lower inflation and interest rates, increased supply of especially affordable product, a plethora of enticing builder incentives, and other factors would bring buyers back in much larger numbers than we’ve been seeing,” she noted in the fall. “However, market conditions over the last couple of years have understandably left buyers a bit skittish when it comes to purchasing a new home.
“Barring any major events to shift current market trends, we can expect … pent-up demand potentially boosting sales significantly by spring 2025.”
While that may be the case, developer attitudes remain pessimistic. Where the local mantra at the end of 2023 was to survive until 2025 — meaning 2024 was expected to be lean with the market reviving by 2025 — a recent provincial survey by StrategyCorp has found that the mantra is now “somehow make it through 2025.”
The survey interviewed 21 real estate developers across Ontario who, as a group, had more than 100,000 approved homes in their pipeline across Ottawa, Eastern Ontario, the Greater Toronto Area and the Hamilton region. According to the survey, more than half of those units are not economically viable to build. The consulting firm notes that while the survey is not intended as a representative sample, it does consider the conclusions to be reflective of the views of the development sector in general.
“We are in a generational-level crisis and governments aren’t treating it like one … A significant gap remains between the cost of building new housing and what buyers are willing to pay for it.”
StrategyCorp also notes that there is no unanimity on what the next five to 10 years might look like, but “the consensus is they won’t look like the previous 20.”
A key finding is that aside from purpose-built rentals, few other projects are getting the green light. This is primarily due to funding made available by the Canada Mortgage and Housing Corporation (CMHC) or HST exemptions to spur the growth of rental housing.
The survey team also heard that new-home buyers who can afford to buy “appear willing to sit on the sidelines to wait for deals on already-built units as many existing homes are more cost competitive than prebuilds — a near complete inversion of historic trends.”
StrategyCorp’s take: “Home builders have been hit with a barrage of challenging conditions which threaten to stall a significant portion of planned housing construction for the foreseeable future, all while demand continues to increase.”
Real estate company Royal LePage expects the Ottawa resale market to see an upswing in 2025.
“As interest rates have dropped, a steady rise in both activity and prices have materialized, resulting in a better-than-expected fall market. We anticipate that this momentum will continue into the new year,” John Rogan, broker of record for Royal LePage Performance Realty, said in the firm’s 2025 market forecast.
Royal LePage expects a “moderate uptick” in prices as first-time buyers return to the market, as well as a replenishing of inventory of homes for sale, although inventory will struggle to keep pace with increasing demand.
“Like many markets, Ottawa should see a robust spring market that kicks off earlier than normal as eager buyers look to transact,” Rogan says. “Depending on the timing of the next federal election and the possibility that it could be triggered before October, a softer fall market could be in store. Ottawa buyers and sellers tend to have a stronger reaction when there is a potential changeover in government, seeing as the transition is happening in their backyard.”
Similarly, real estate firm Re/Max’s outlook calls for a balanced market driven by first-timers seeking primarily townhomes, and price increases averaging 2.5 per cent.
Realtor Jen Alvarenga, broker and team leader at the real estate firm GoodStory, notes that the market “is full of motivated buyers, but the lack of inventory remains the biggest issue — current market conditions have buyers and sellers adopting a ‘wait-and-see’ approach.”
While she foresees steady growth next year, she doesn’t think it will be dramatic due to employment uncertainties, political and economic trends south of the border and uncertainty with the upcoming federal and provincial elections here at home.
2025 trends: Housing
Affordability issues mean that housing choices have shifted to more cost-effective options like townhomes and condo towns, a shift that is expected to continue in 2025 — along with other ways buyers (and builders) are tackling affordability concerns, like homes that offer flexible spaces.
“The big trend in 2025 will be multi-generational homes or homes with suites, driven by both affordability concerns and the desire for rental income,” says Shawn Malhotra, chief operating officer of Claridge Homes. His observation is backed up by the annual Home Buyer Preference Survey that’s done by the Canadian Home Builders’ Association (CHBA) in conjunction with Avis Ratings Canada. In canvassing more than 18,000 new-home buyers across the country, the survey found that 57 per cent want a legal secondary suite, with almost 20 per cent interested in using a secondary suite as a long-term rental, which is up about five per cent from last year.
“Families are coming together under one roof to manage costs and homes with secondary suites … as well, houses with a main-floor bedroom and full bathroom … are popular,” Malhotra says.
Even on the resale side, basement apartments and in-law suites are becoming increasingly common, notes Alvarenga. “I’ve been advising clients for years to consider secondary dwelling units (SDUs), even if they don’t plan to use them right away.
“Preparing for one — by roughing it in during construction or creating a separate entrance — can significantly increase a property’s value and future-proof the home. Whether accommodating adult children or aging parents, these spaces add flexibility.”
MORE: How builders are courting elusive buyers
Despite the overriding concern with housing affordability, buyers are increasingly opting for smart tech in their homes and are also eco-conscious.
“These trends are driven by growing environmental awareness, as buyers seek homes that align with their values on sustainability and energy efficiency,” notes Megan Van Rijt, sales and marketing director for builder Park View Homes.
She adds that the work-from-home shift “continues to influence home layouts, requiring spaces that can serve multiple purposes. There’s also an increasing focus on health and wellness, with biophilic design and flexible spaces enhancing both physical and mental well-being.”
Open-concept designs will remain popular, Van Rijt says, but there will be a greater emphasis on defining distinct spaces to create separation, and she’s seeing a trend toward smaller, more efficient homes that maximize space while maintaining functionality.
“Smart kitchens will continue to evolve, incorporating more advanced tech features such as smart appliances and energy-efficient solutions. Outdoor living areas will also grow in importance, with larger patios and seamless transitions between indoor and outdoor spaces.”
Brigil, one of the region’s largest builders of new rental accommodations, is also seeing a desire for greater sustainability and well-being at home, paired with the need for accommodations that don’t handcuff the budget.
“Rentals have now become the most affordable option,” notes Jessy Desjardins, Brigil’s vice-president of development and conception. Mindful of the desire of those who live in rental apartments to expand their living space, he notes that providing common spaces such as lounges and work spaces is growing.
“The pandemic changed Canadians’ perception of their dwellings. Their home has now also become their workspace. Whether it’s a need for a change of scenery, an opportunity to make connections with other residents, or simply to relax, common spaces extend their living environment.”
2025 trends: Renovations
Many of the 2025 trends driving new-build homes are also being seen on the renovation side.
“We expect to see the interest in additional dwelling units continue to rise as homeowners seek solutions for multi-generational living, rental income or more flexible-use spaces,” says Saverio Marrello, director of design and sales for Amsted Design-Build, which is Ottawa’s and Ontario’s reigning renovator of the year.
“Sustainability and smart home technology remain priorities, while designs increasingly emphasize seamless indoor-outdoor integration, affordable luxury by incorporating higher-end features in kitchens and bathrooms, and a renewed interest in natural materials and colour palettes. Homeowners are focusing on creating functional, future-ready homes that reflect their evolving needs.”
He says these trends “seem to reflect a combination of societal shifts and practical needs. Given the current housing climate, it’s no surprise that families are choosing to stay together, making multi-generational living and flexible spaces more important than ever.
“The rise of remote work and an aging population drive demand for adaptive layouts and accessibility features, while trends like affordable luxury offer middle-income buyers the chance to balance quality and cost.”
Emma Doucet of Grassroots Design & Build is also seeing the multi-generational option come up more often. She just finished a secondary unit above a garage for a family wanting a private space for their adult daughter that could eventually become a suite for themselves or a rental unit.
“Families are noticing that housing is so expensive that they’re kind of expecting their kids to have to live in their house for a while to save money to even buy a house,” she says. “That’s definitely coming up a lot more.”
In a December webinar to the industry, the CHBA noted that 63 per cent of Canadians want to renovate their home, with demand driven in part by our aging housing stock — three quarters are more than 20 years old — a massive inter-generational transfer of wealth taking place and the desire to age in place. The CHBA also expects to see growing activity resulting from falling interest rates and increased consumer confidence.
2025 trends: Design & decor
Not surprisingly, there are established trends that are sticking around for 2025 — think curves everywhere from arches to furniture, the return of wood and deep saturated tones — but there are also some new ones joining the fray.
We’re really focusing on comfort in our homes, says designer Sue Pitchforth of Decor Therapy Plus. “If it’s beautiful, but it’s so uncomfortable, why have it in your house? You want to really focus on comfort, comfortable furniture that you can relax in, colours that soothe and relax you, and then textures that are interesting and keep you cosy, especially in winter.”
Also trending is clean living that incorporates plants, bringing nature inside and doing it with a purpose. “Plants reduce stress, they help us sleep better, plus they look great; they’re really great visual fillers in different spaces.”
Tied in with both those trends is the idea of self care, she says. “We want our homes to be our haven… It’s all about creating a place that’s good for you physically and mentally.”
Deirdre Jorssen from Eastboro Designs echoes that.
“The focus on wellness at home will remain a cornerstone, with designs emphasizing natural light, improved air quality and biophilic elements like living walls or greenery,” she says. “Homes are increasingly seen as sanctuaries, so expect more sensory-friendly environments with calming palettes, tactile materials and spaces designed for mindfulness and relaxation.”
Jorssen also sees sustainability as no longer just an option, but a priority. “Homeowners are looking for materials that not only have a smaller ecological footprint but also tell a story. Think reclaimed wood, artisanal tiles and vintage or reimagined furniture. These elements combine environmental consciousness with individuality, creating layered, meaningful designs.”
But her personal favourite is a trend that’s already taken hold here in Ottawa: rich, layered textures and colours.
“While neutrals like warm whites and greiges (a mix of beige and grey) still dominate, expect deeper, more daring hues to rise, such as terracotta, olive green and smoky blue,” she says. “These tones create a sense of comfort and sophistication. In textures, we’ll see a mix of soft bouclés, raw linens and natural stone juxtaposed with polished metals or velvets to achieve balance and depth.
“The common thread in these trends,” she adds, “is an emphasis on intentionality.”
Kristyn Gerth of Montreal-based Oak + Ash Interiors, which also services Ottawa, points to unique tile sizes and configurations. “The use of tile to elevate a space is not a new trend, but in 2025 we are seeing enhanced creativity in how tile is laid and the patterns being used,” she says.
“Mix the size, scale and pattern of tiles, lay in unique configurations to add interest or go bold with bright colours to make a statement in your space. Remember that tile is not just for floors and showers; run them up your walls to add texture and interest or clad doorways for a unique look.”
And Tanya Collins of Tanya Collins Design says we’re starting to move away from the farmhouse, rustic wood and minimalist beige-on-beige neutrals to more glamour, with heavily veined marbles, lacquered finishes and graphic pattern.
“Authenticity in the choice of high-quality materials and natural finishes, originality in the mixing of furnishings and decor, and layering — especially on walls and ceilings — will continue to be important no matter the style.
“The pendulum always swings, as we have seen a lot of rustic finishes dominate the mass market for a while. The key is not to get caught up in it all and stay true to your own personal style,” she advises. “There is always an element of timelessness in every ‘trend.’ It is more about how you create harmony and balance with the mix in your interior while making it authentic to you.”
Among new-home buyers, the most popular features continue to be storage and energy efficiency, which account for eight of the top 10 spots in the 2024 CHBA Home Buyer Preference Survey. Rounding out the top 10 are kitchen islands and hardwood (or hardwood-look) flooring in the kitchen.
The CHBA notes that the challenge when it comes to energy-efficiency is the gap between what homeowners say they want and what they would pay to have it. When asked what they would prioritize if they had an extra $10,000 to spend, only 15 per cent said they’d spend it on energy efficiency, whereas 25 per cent would spend it on interior finishes and options, and 27 per cent would spend it on a larger home or larger lot.
In the kitchen
Interestingly, while we seem to be getting bolder with colour generally, Caroline Castrucci of Laurysen Kitchens finds that, in the kitchen, everything is getting softer, from colours to textures.
“Colours are not so much black and white — or white and dark grey — but warm whites with wood accents.”
Her colleague Corey Laurysen has also noted pops of colour integrated into cabinetry, particularly the shift to green that emerged in the last couple of years. He thinks that will remain in 2025.
Both are seeing a lot of mixing of materials, with three or four colours not unheard of, Castrucci says, and matte textures or natural wood grains.
“People are looking for kitchens that they can live and work in, not the show kitchen, so that warmth is returning,” she says. “And they want ease of maintenance, something that will stand up over time, so (we’re) seeing a departure from paint to polyester, wood and melamine. Things that don’t show fingerprints are high on the list.”
Also high on the list: “Things are less fussy, so simple lines and no crown mouldings. They are looking for extra storage space, so kitchens that are a lot higher, to the ceiling.”
Laurysen notes the trend toward a slimmer “frame” for Shaker cabinets that’s booming. “It’s a nice easy step away from the standard 2¼-inch shaker door style to give your cabinetry a bit more of an eclectic feel,” he says.
And appliances that are flush to cabinets and counters or else hidden behind cabinet door panels were big in 2024 and remain relevant for 2025. “Panel-ready appliances create the illusion of a larger kitchen but also keep lines sleek and clean.”
Counters & other stone elements
Urban Quarry’s Gina Childers sees warmer tones becoming more popular, marble looks (but done with the low maintenance of quartz) continuing to dominate — “marble looks win every time,” she says — full-height backsplashes and thinner countertops.
For 2025, she’s starting to see more stone suppliers adopting a honed leather finish. “We do have some of that in quartz already, but we’re seeing more of it being introduced.” She thinks its appeal lies in the more natural, understated sophistication that it suggests.
Also becoming popular: either porcelain or exotic natural stones like Taj Mahal quartzite or Calacatta marble and the resurgence of traditional edge profiles such as bullnose rounded edges, the S-shaped ogee or custom designs.
“Designers are pushing the limits, which is wonderful and exciting because we’re doing so much more in stone than we used to,” Childers says.
2025 trends: Colour
In keeping with the general trend toward deeper tones, the various paint makers have also gone richer and darker with their colours of the year — a departure from last year’s mostly soft and soothing tones.
Kicking them off is the Pantone Color Institute, which is not a paint maker, but which influences fashion, textiles, home decor and interior design. Pantone’s colour for 2025 is Mocha Mousse, a “warming, brown hue imbued with richness,” the company says on its website.
Saying that its colour of the year program is selected to “express a global mood and an attitude, reflecting collective desire in the form of a single, distinct hue,” Mocha Mousse “nurtures us with its suggestion of the delectable qualities of chocolate and coffee, answering our desire for comfort.”
However, Ottawa’s Emma Doucet predicts the colour will not take off. “It’s a colour that looks beautiful if you have a lot of money. It looks great in a New York loft, a Paris apartment,” she says. “But it’s not a colour that can work well in most homes because they’re just not fancy enough. So, my suggestion is, don’t go for it unless you have a lot of money.”
In the same vein as the Pantone colour of the year, Benjamin Moore has chosen Cinnamon Slate, what it calls a nuanced hue that is a delicate mix of heathered plum and velvety brown.
“As the use of more saturated colour in design has increased in recent years, we are seeing a growing interest in more nuanced colours, whose undertones add intricacy and dimension,” Andrea Magno, Benajmin Moore’s director of colour marketing and design, says in a release. “Cinnamon Slate is an inviting hue that offers enduring style and modern sensibility. Its depth and richness bring an air of approachability and sense of comfort throughout the home.”
Shifting further along the palette, it was interesting to see three paint companies all choose shades of purple for their 2025 colour of the year.
Dulux’s choice is Purple Basil, a “high-impact hue that demonstrates the transformative power of colour,” the company says in a release. “Purple Basil embodies warm, rich purple shades, supporting the growing trend of using dramatic colours in home decor. It empowers consumers to unapologetically select the bold paint colours that speak to them.”
Mitsu Dhawan, who is a Dulux marketing manager, observes that while many homeowners might want to incorporate a bold colour to transform a space in their home, “when it’s time to make the final selection, they play it safe and revert to neutral, muted shades. This year, we’re helping with that final push to go bold and try a dramatic, less expected colour.”
Sico opted for the slightly deeper Starry Night.
“Starry Night invokes the depth and drama of the night sky, while also providing the comfort we get from knowing the same galactic events we see from our backyards are being seen by others around the world,” Sico marketing manager Martin Fuchs, says in a release. It “has the authentic ability to connect us more to nature and each other in 2025.”
And Canadian paint maker BeautiTone opted for the very deep Midnight Flora, “a deep dramatic red-purple that creates the feeling of an enchanting garden at twilight, invoking a moody esthetic,” the company says in a release.
“Midnight Flora speaks to the profound shift toward imagination we’re seeing in colour and design, one that is shaped by a freedom of creativity,” says Kristen Gear, lead design and colour specialist for BeautiTone.
And, finally, two others went in different directions, but stayed with rich tones:
- Behr: Rumors (MQ1-15), “a deep red that adds warmth and rich allure.”
- Valspar: A rich blue that has three names, depending on where it’s purchased — Epic Adventure, Blue Olympus or Encore. Valspar calls it an anchoring aquamarine that “embodies constancy and confidence to let you create a joyful respite from the ebbs and flows of life.”
