Toronto Condo Sales Crater to 34-Year Low

Toronto’s condo machine has ground to a near standstill.

Sales of new condominiums in Canada’s largest city plunged last year to the lowest level in more than three decades, according to data by consultancy Urbanation reported Bloomberg. New condo sales fell 60 percent in 2025 to just 1,599 units — a 95 percent drop from the market’s 2021 peak.

The collapse reflects the sudden disappearance of the investors who long underwrote Toronto’s condo boom, snapping up pre-construction units years before completion. Under elevated interest rates, sliding prices and feebl rent returns, that buyer pool has evaporated.

Sales hit a new low point at the end of the year. Just 262 units sold in the fourth quarter, the weakest quarterly total since 1990, and inventory is piling up. More than 8,200 new condos were sitting unsold at the end of December, with prices already down about 20 percent from the peak. Another 10,000 units are too far along in construction to cancel, adding to the glut.

The slowdown is rippling through the development industry. Toronto had more construction cranes than any city in North America during the boom years. Now, as units linger on the market, developers are being pushed into insolvency at a record pace, while others are pulling projects outright. Urbanation said builders canceled a record 28 condo developments last year, representing more than 7,000 units.

“The condo market is basically in a recession,” Benjamin Tal, deputy chief economist at Canadian Imperial Bank of Commerce, told the outlet. “You cannot go through this kind of shock without a change to the system.”

The mechanics of condo development are amplifying the downturn. Many projects depend on strong pre-sales to secure financing. With buyers scarce, developers can’t break ground, choking off future supply even as today’s inventory swells, according to Urbanation’s findings. That creates a paradox in a city already grappling with a housing shortage.

Urbanation President Shaun Hildebrand warned the damage may linger for years.

“As the condo market enters the fifth year of its largest-ever correction, the duration of this downturn should be a significant cause for concern as it relates to future supply,” Hildebrand said in the news release.

By the end of the decade, he added, Toronto could face a near-total absence of new condo completions.

— Eric Weilbacher