Ontario condos have gone through a major transformation over the past four decades, and not in a way most buyers would expect. New data shows that condo units across the province have shrunk roughly one-third in size since the 1970s, even as prices have climbed to record levels.
The trend, often called “shrink-flation,” has become a defining feature of urban real estate, especially in the Greater Toronto Area. Buyers today are paying more money for significantly smaller living spaces, raising questions about affordability, livability, and long-term value.
Average Condo Size Has Dropped 30–35% Over The Years
Historical data paints a clear picture of how dramatically condo sizes have changed:
- In the 1970s, the average Ontario condo measured around 965 square feet.
- By the 2020s, that average dropped to just 658 square feet.
- That represents a 32% size reduction across the province.
(Source: REMINET)
More recent estimates from the Real Estate Institute of Canada and MPAC suggest a similar pattern. Comparing condos from the mid-1990s to the early 2020s, units have shrunk by roughly 35%, reinforcing the long-term trend.
For today’s buyers, this means the typical condo is no longer a spacious starter home or long-term living option. Instead, it’s often a compact unit designed for efficiency – and high-density urban growth.
Prices Increased While Sizes Decreased
While condos have been shrinking, prices have moved in the opposite direction.
Across Ontario, especially in Toronto, condo prices have risen significantly due to:
- High demand for urban living
- Low housing supply in major cities
- Rising construction and land costs
- Investor-driven pre-construction markets
- Years of population growth and immigration
This leaves many first-time buyers in a tough position: smaller units at higher prices. What was once considered a normal condo size decades ago is now comparable to a two-bedroom layout.
Why Developers Are Building Smaller Units
Several factors explain why developers continue to build compact condos:
1. Affordability Optics
Smaller units keep starting prices “lower,” even if the price per square foot is higher.
2. Land Scarcity
Urban land is limited and expensive, especially in downtown Toronto.
3. Investor Demand
Smaller units are easier to rent, appealing to investors looking for cash flow.
4. Construction Costs
Higher material, labour, and financing costs lead developers to shrink square footage to maintain margins.
5. Zoning + Density Targets
Municipalities are pushing for more housing within existing neighbourhoods, which often means more units, not larger ones.
What This Means For Buyers in 2025
For buyers entering the market today, the shift toward smaller condos has real-world implications:
Smaller living spaces
Many first-time buyers now use condos as stepping stones rather than long-term homes.
Higher price per square foot
Smaller units don’t necessarily mean cheaper — especially in Toronto.
Lifestyle constraints
Less storage, smaller kitchens, tighter bedrooms, and limited dining space are now common.
Investment impact
Renters often accept smaller units, but resale buyers may be more selective.
The Viral Takeaway
The condo shrink-flation trend is a perfect example of what many Canadians already feel:
“Condos in Ontario are roughly one-third smaller than they used to be – but cost way more. Welcome to 2025 real estate.”
It’s a simple, striking contrast that fuels the ongoing conversation around affordability, housing supply, and the future of urban living in Canada.
References
- REMINET – Ontario condo size historical data (1970s–2020s).
- MPAC & industry reports – median condo size trends from mid-1990s to early 2020s.
- Real Estate Institute of Canada – national condo size and density trends.
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