TORONTO – Last year, the number of newly finished condominiums sold in the Greater Toronto Hamilton Area dropped to its lowest point since 1991, with a record 28 active condo projects getting cancelled.
A report released on Wednesday by Urbanation indicated that 2025 marked the fourth consecutive year of declining new condo sales in the region, which fell by 60 per cent from the previous year, totaling just 1,599 units. Sales of new condos in 2025 were also 91 per cent below the average for the past decade and have plummeted by 95 per cent since 2021.
In addition, a total of 7,243 units in new condo developments were scrapped, more than doubling both last year’s cancellations and the previous high set in 2018.
“As the condo market enters the fifth year of its largest ever correction, the duration of this downturn should be a significant cause for concern as it relates to future supply,” said Urbanation president Shaun Hildebrand in a news release.
“By the end of the decade, we know with certainty that there won’t be any new condo completions. What we don’t know is how far into the 2030s the supply crunch will last. If rental construction can’t fill the void, this raises serious questions around the impact on affordability.”
The report noted that eight cancelled condo projects totaling 2,189 units were turned into purpose-built rentals in 2025, following another conversion of 1,434 cancelled condo units to rentals in 2024.
However, these conversions – along with a 24 per cent increase from 2024 in purpose-built rental starts – weren’t enough to balance out a decline in overall condo starts across the region.
The report showed that condo construction starts dropped by 63 per cent year-over-year in 2025 to just 3,272 units-marking a multi-decade low-and developers initiated only ten new condo projects throughout last year.
Out of those launched last year, only about 22 per cent sold compared to a sales rate of around 24 per cent for new launches from the prior year and an impressive high of roughly 81 per cent for new launches back in 2021.
Condo starts have decreased by an astonishing 88 per cent over three years now, bringing total inventory under construction down to its lowest point in ten years.
The average selling prices for new launches fell to $1,123 per square foot-a five-year low-down eight percent from what they were in 2024.
The report also mentioned that resale condos completed within three years averaged selling prices at $856 per square foot during Q4 of 2025.
This report by The Canadian Press was first Jan. 21, 2026.
Sammy Hudes, The Canadian Press
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