Condo sales, construction crater in Canada’s two biggest markets, data show

Condominium sales in Toronto and Vancouver have tumbled, with big drops that are hard to ignore. In Toronto alone, sales are down 21.7 percent compared to last year, while more than 20,000 condo units are sitting unsold. That’s a lot of empty homes waiting for buyers.

This sudden oversupply has created a buyer’s market. People who want to buy a condo are pausing to see if prices will drop further. Although interest rates have eased somewhat, worries about the global economy are weighing heavily on decision-making. Buyers aren’t rushing in - even when prices soften, many are choosing to wait and watch.

Developers are feeling the pinch too. A sharp drop in pre-construction sales has made securing financing difficult. As a result, condo construction in the Greater Toronto Area has dropped to its lowest levels since the 1990s. Since 2024, at least 28 new condo projects - almost 6,000 units - have been put on hold, cancelled, gone into receivership, or turned into rental buildings.

Experts see this lull as part of a market cycle. Both cities are severely oversupplied right now, especially in the condo segment. Many expect it will take years for the surplus of unsold units to be absorbed. On the bright side, some believe that as inventories dwindle, the markets may swing back to being under-supplied, which could help prices eventually rebound.

Market analysts warn that the pause in development is a concern for the future. Over the longer term, Canada needs millions of new homes to bring housing back into reach for many families. If construction stalls now, the shortage may deepen, pushing affordability further out of reach.

In the end, the condo market in Canada’s two biggest cities is facing a tough stretch. Sales have collapsed, new construction has all but dried up, and thousands of units remain unsold. It’s a market out of balance. But as unsold condos finally clear and builders return, today’s challenges may pave the way for tomorrow’s rebound.