Canada Housing Market

Toronto’s once-booming pre-construction condo market has slowed dramatically.

New data shows sales of newly built condominiums in the Greater Toronto and Hamilton Area (GTHA) plunged 60% in 2025, falling to just 1,599 units – the lowest annual total recorded since 1991.

The sharp drop marks the fourth consecutive year of declining new condo sales and signals a major shift in Canada’s largest housing market.

Analysts say the downturn could have significant implications for housing supply across the region in the coming years.

Toronto Condo Sales Have Fallen 95% Since the 2021 Peak

The collapse in sales represents one of the most dramatic shifts the market has seen in decades.

According to Urbanation’s year-end condominium market report:

• New condo sales fell 60% in 2025 compared with 2024
• Only 1,599 units were sold across the GTHA
• Sales were 91% below the 10-year average
• Sales are down roughly 95% compared with the 2021 market peak

Urbanation president Shaun Hildebrand described the slowdown as one of the most significant corrections ever recorded in the region’s new condo market.

The weakness continued through the end of the year, with just 262 units sold in the fourth quarter of 2025 – the lowest quarterly total since 1990.

Record Number of Condo Projects Cancelled

The slowdown has forced developers to delay or cancel projects across the region.

In 2025 alone:

• 28 condo projects were cancelled
• Approximately 7,243 units were scrapped

Some cancelled projects have reportedly been converted to purpose-built rental housing instead.

At the same time, developers launched only 10 new condo projects throughout the entire year – a dramatic slowdown compared with the pace seen during the market boom earlier in the decade.

Construction Starts Are Also Falling

The collapse in presales is now beginning to impact construction activity.

Condo construction starts in the GTHA fell 63% year over year in 2025, dropping to just 3,272 units.

Over the past three years, condo starts have declined roughly 88%, significantly reducing the pipeline of future housing supply.

Investor Demand Has Largely Disappeared

Toronto’s pre-construction condo market has historically depended heavily on investors purchasing units years before construction begins.

However, that demand has weakened significantly due to several factors:

• Higher interest rates
• Lower rental yields
• Declining condo prices
• Increased financing challenges

With investors stepping back, developers are struggling to reach the presale thresholds required to secure construction financing.

As a result, fewer projects are moving forward.

Prices Falling and Unsold Units Rising

Even as demand has weakened, many developers have lowered prices in an attempt to stimulate sales.

Average prices for new condo launches fell to about $1,123 per square foot in 2025 – an 8% decline from the previous year and the lowest level in five years.

At the same time, unsold inventory has continued to build.

Thousands of buyers who purchased pre-construction units during the boom years are also reportedly struggling to close on their purchases, forcing developers to resell units back onto the market.

What This Signals for Toronto’s Housing Market

While the current slowdown reflects weak demand today, analysts warn the biggest impact may appear several years from now.

With fewer projects launching and construction starts collapsing, future housing supply could fall sharply by the end of the decade.

Urbanation has warned that if the trend continues, the region could face a severe shortage of new condo completions later in the 2020s.

For now, Toronto’s condo market appears to be entering a prolonged adjustment period after years of rapid growth driven largely by investor demand.

References

Urbanation. (2026). GTHA new condo sales fall to lowest level since 1991.
https://www.urbanation.ca

ConstructConnect. (2026). New condo sales in the Greater Toronto Hamilton Area plunge to lowest level since 1991.
https://canada.constructconnect.com

CityNews. (2026). Toronto-area condo sales plunge to lowest level in decades.
https://halifax.citynews.ca