In response to CMHC, condominium residence gross sales in Toronto have fallen 75% since 2022, whereas Vancouver noticed a 37% drop as of Q1 2025. The sharp downturn has been pushed by a mixture of upper rates of interest, diminished affordability, and waning investor urge for food.
In the meantime, inventories have ballooned. In Toronto, the months of provide for pre-construction condos surged to 58 months in Q1—14 instances greater than in 2022. Vancouver is dealing with related, albeit much less excessive, challenges.
Falling costs, rising losses
Condominium resale costs have slipped 13.4% in Toronto and a couple of.7% in Vancouver since 2022, erasing among the double-digit beneficial properties seen through the pandemic housing increase.
For buyers who purchased pre-construction models anticipating continued progress, this has translated into potential capital losses of as much as 6% on 2024 purchases in Toronto, the company famous.
CMHC says profitability for buyers within the Toronto and Vancouver condominium markets is “underneath stress,” citing the results of upper borrowing prices and stagnant worth progress. Since 2022, investor carrying prices have risen 24% in Toronto and 29% in Vancouver, whereas rents have grown at a slower tempo—15% and 12%, respectively.
As resale values dip under buy costs, securing financing at closing has additionally turn into tougher.
A wave of mission cancellations
Unsold stock can be delaying or derailing future development. In Toronto, 55% of pre-construction models remained unsold in Q1 2025—simply shy of the document 56% seen in late 2024.
That’s nicely under the 70% pre-sale threshold lenders sometimes require to launch mission funding.
These challenges have led to a wave of cancellations, with the variety of cancelled apartment models up five-fold in Toronto and 10-fold in Vancouver from 2022 to 2024. Whereas some builders have pivoted to purpose-built rental tasks, others have shelved plans solely.
Brief-term reduction, long-term danger
For now, the slowdown has introduced some reduction for patrons and renters. Rents have moderated, and costs have softened, easing situations in Canada’s two most costly housing markets.
However that reduction might come at a price.
“The condominium tasks cancelled as we speak imply fewer housing completions sooner or later,” CMHC warned. “The reduction for patrons and renters is non permanent, with future housing shortages compounded.”
With completions anticipated to stay excessive and demand nonetheless subdued, CMHC sees continued stress on costs and rents within the close to time period. However the longer-term concern is obvious—as we speak’s slowdown might deepen Canada’s structural housing scarcity down the road.
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Final modified: June 10, 2025