GTHA: New Condo Sales Plummet to Their Lowest Level Since 1991

January 21, 2026: A report released today highlights two significant trends in the Greater Toronto and Hamilton Area (GTHA) real estate market. The first is a substantial decline in condo sales, which has led to the cancellation of numerous condo projects throughout the region. The second trend, running parallel with the first, is a growing reliance on purpose-built rental units, which are gaining traction among builders and planners as a potential solution to the housing crisis.

Condo Sales Take a Dive.

New condo sales have fallen for the fourth consecutive year in 2025, dropping 60 percent from 2024 to just 1,599 units—the lowest level since 1991. The last quarter of 2025 recorded only 262 new condo sales, marking the lowest quarterly total since 1990.

This downward trend is concerning and not entirely new. In 2024, new condo sales were 91 percent below the 10-year average and 95 percent below 2021 levels.

As a result, builders are increasingly cutting their losses and canceling condo projects. Notably, the report indicates the cancellation of 28 active projects totaling 7,243 units in the GTHA. This number is double the units (3,469) canceled in 2024 and exceeds the 3,598 units canceled in 2018.

A notable pivot is occurring within this trend. Of the 28 canceled condo projects, eight—which were set to contain 2,189 units—have been repurposed as purpose-built rentals, adding to the 1,434 condos converted to rental units in 2024.

Understanding the Difference Between Condos and Purpose-Built Rentals.

The primary distinction between condos and purpose-built rental units lies in their design and ownership. Condos are typically individual units owned by private individuals and are often furnished with high-quality materials to appeal to potential buyers. In contrast, purpose-built rentals are specifically designed with tenants in mind, offering amenities and features suited for modern living while ensuring long-lasting durability.

Continuing the Discussion: The number of purpose-built rentals increased by 24 percent from 2024 to 2025, with an addition of 1,637 units—representing a multi-decade high. Conversely, condo construction starts plummeted to a multi-decade low, falling 63 percent from 2024 to 2025.

The report reveals that over the past three years, condo starts have decreased by 88 percent, leaving only 50,479 condos currently under construction—a 10-year low. Of the 10 new condo projects launched in 2025, only one building was brought to market by the end of the final quarter.

 “Sales continued to decline in 2025, even as the average selling prices of new launches fell to a five-year low of $1,123 per square foot—an eight percent decrease from 2024 and an 18 percent drop from 2022,” the report states.

Despite this drop in prices, “new builds remain at a significant premium” compared to resale units, with average selling prices around $856 per square foot by the end of the fourth quarter.

The report also examines the shift of former condo buyers from pre-construction projects—which accounted for less than half of total sales in 2025—to newly completed projects, noting that more sales occurred during the occupancy and registration stages.

By the end of 2025, the report highlights that the completed but unsold inventory reached a record high of 3,897 units, up 131 percent from 2024. This figure is also five times the inventory available in 2023.

The report emphasizes that, as the condo market enters its fifth year of the most significant correction in history, the duration of this downturn should raise considerable concerns regarding future supply.

“By the end of the decade, we can be certain that there will be no new condo completions. However, the duration of the supply crunch into the 2030s remains uncertain. If rental construction cannot fill this void, serious questions arise regarding its impact on affordability,” the report cautions.

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