Cause For Concern: Toronto Condo Units Already Represent 60% Of Total Inventory

Toronto’s condo market is sounding alarm bells. By mid-June 2025, condo units made up nearly 60 percent of all homes for sale in the City of Toronto. Of 11,705 active listings in May, around 6,855 were condo units. That’s a striking number that shows just how much of the city’s housing supply is now tied up in condominiums.

The level of supply is especially concerning given slow sales. Only 973 condo units were sold in Toronto during May, a drop of about 25 percent from the same time last year. At that pace, the market now has around seven months' worth of condo inventory—well above the five-month mark that usually signals a shift toward a buyer’s market.

One reason for the oversupply is the steady stream of condo construction in recent years. The number of condo apartments has grown year after year, steadily adding more units to the market. But this rising supply isn’t being matched by rising demand. Buyers are cautious, and many are waiting on the sidelines, creating an imbalance between what’s available and what’s being purchased.

That surplus is also pushing prices down. Toronto resale condo prices dropped 7.3 percent in May. As resale prices fall, new condo units—usually priced higher—become harder to sell. This is especially tough for buyers who pre-purchased units that are now worth less than they expected.

There’s also a large stock of unsold condos still in the pipeline. Across the city, thousands of pre-construction, under-construction, and even completed units remain unsold. These numbers don’t show up in regular listings but still add to the pressure on the market.

This growing pile of unsold condos is causing real problems for the industry. Developers are cancelling projects, construction starts are slowing, and jobs are being lost. Completions are expected to peak at over 31,000 units in 2025, then drop sharply in 2026 as fewer new projects get off the ground. The market is now stuck between an oversupply crisis and a likely underbuilding problem just around the corner.