Ottawa’s housing shortage has never been abstract, and neither are its economic consequences. Employers struggle to attract talent, small businesses face rising operating costs and workers are increasingly priced out of the communities they serve. That’s why today’s approval by city council of Ottawa’s new comprehensive zoning by-law is an important milestone, not just for housing, but for the city’s broader economic future.
The updated by-law reshapes what can be built, where it can go and how quickly projects can move from proposal to construction. After years of rising demand and constrained supply, council’s decision provides clearer, more practical rules at a critical moment — rules that support growth, expand housing options and reduce barriers for businesses investing in Ottawa.
The Greater Ottawa Home Builders’ Association (GOHBA) advocated for — and welcomes — many of the changes now adopted. Greater predictability and consistency in zoning is essential for long-term investment decisions, whether for housing development, mixed-use projects or small-scale commercial activity.
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Key improvements include the elimination of most minimum parking requirements, greater flexibility for front-yard parking, the removal of the streetscape character analysis for infill projects, more reasonable transitions for high-rise buildings and standardized height limits that support three-storey homes in neighbourhood zones. Together, these changes reduce costs, shorten timelines and improve feasibility, all critical factors in delivering new housing at scale.
Importantly, the new zoning framework also supports business activity and local economic development. By simplifying commercial zones, expanding permitted uses near transit and on busy streets and allowing more mixed-use development, the by-law encourages the kind of compact, flexible growth needed to support 15-minute neighbourhoods. These changes reduce reliance on new parking infrastructure and make it easier for projects to respond to market demand.
For the business community, these changes signal a more competitive and investment-ready city. Reducing regulatory friction and modernizing zoning rules improve project feasibility and lower risk, two factors that directly influence where capital is deployed. Predictable zoning, fewer site-specific variances and flexibility in permitted uses allow businesses to plan with greater confidence and respond more quickly to market conditions.
Over time, this approach can improve productivity, support job creation and help Ottawa better compete with other cities for investment, talent and innovation. Our relative housing affordability needs to remain a top priority as it is one of our city’s key competitive advantages over larger cities like Toronto and Montreal.
Expanded permissions for home-based businesses — in both urban and rural areas — are another meaningful step forward. Allowing more space and employees for small operations, from bakeries to professional services, supports entrepreneurship and enables businesses to grow. Similarly, increased permissions for small-scale retail, cafés and restaurants along minor collector roads will help animate neighbourhoods while creating opportunities for local investment.
For residents, these changes mean neighbourhoods will evolve organically over time. More infill projects — including duplexes, triplexes, small apartment buildings and mixed-use developments — will become possible in areas that were previously constrained. Clear and consistent rules help ensure growth happens in a predictable way, benefiting residents, builders and businesses alike.
Zoning reform, however, is only one part of the equation. Council’s approval creates opportunity, but outcomes will ultimately depend on implementation. Delays, inconsistent interpretation or misaligned approval timelines could undermine the very certainty this by-law is meant to provide. Ensuring staff have clear direction, approvals remain timely and rules are applied consistently will be essential to translating zoning into homes, jobs and investment.
With this approval, Ottawa has a chance to build real momentum in 2026, supporting housing delivery while strengthening the conditions for economic growth. GOHBA will continue working with city officials and stakeholders to help ensure the promise of zoning reform is fully realized. The framework is now in place; sustained focus and disciplined implementation will determine whether it delivers the housing and economic outcomes Ottawa urgently needs.
Jason Burggraaf is the executive director of the Greater Ottawa Home Builders’ Association.
