Toronto's Condo Market Crashes to 1990s Levels, Sales Plummet 90% in September

Strategic Insights -

Toronto's new condo market has collapsed to levels not seen since the 1990s, with just 28 new condominium units sold within the city in September, and 155 across the Greater Toronto Area (GTA), according to the Building Industry and Land Development Association (BILD). The figures represent a 90% decline from the 10-year average, signaling deep structural distress in Canada's largest housing market. The condo market slowdown is not isolated to Toronto, with all major Canadian housing markets facing a similar chill as the era of cheap money ends and buyers retreat to the sidelines.

Key Takeaways:

  • Condo sales in Toronto proper and the GTA collapsed to 90% below the 10-year average in September, with only 28 and 155 units sold, respectively.
  • New home sales across all housing types (detached, semi-detached, townhomes, condos) decreased by 29% year-on-year and 80% below the 10-year average in September.
  • The benchmark price for new condos in the GTA held steady at $1.033 million, while new single-family homes averaged $1.437 million, down 8% year-on-year.
  • Developers added few new units to the market, resulting in a slight decline in total inventory.
  • Low current sales could lead to fewer projects breaking ground, potentially creating a severe housing shortage by 2027-2028.
  • High interest rates, rising construction and land costs, and government fees have effectively frozen the pre-construction condo market.
  • Developers are urging the federal and provincial governments to cut taxes and reduce development fees to revive the sector.
  • Ontario's new Bill 60 aims to "standardize and streamline" development charges, but implementation details remain limited.
  • Experts warn that a short-term construction freeze followed by a long-term supply crunch could become a two-stage crisis without policy shifts.

Statistics:

  • 28 new condominium units sold in Toronto proper in September 2025.
  • 155 new condominium units sold across the GTA in September 2025.
  • 90% decline in condo sales from the 10-year average.
  • 29% year-on-year decrease in new home sales across all housing types.
  • 80% decline in new home sales from the 10-year average.
  • Benchmark price for new condos in the GTA: $1.033 million.
  • Average price for new single-family homes: $1.437 million (down 8% year-on-year).

Sources:

  • Building Industry and Land Development Association (BILD)
  • Altus Group
  • The Globe and Mail