The Greater Toronto Area (GTA) saw a significant decline in its condominium market in 2025, largely due to an imbalance of supply against demand. The REMAX Canada 2025 Canadian Condominium Report shows that a surplus of condos and a lack of buyer interest have caused a decrease in condo prices, a trend expected to continue into the new year. “Average Toronto-area condo lost $37K in value in 2025 and new year looking just as grim,” says the report.
Impact on Condo Prices and Investors
According to the REMAX Canada report, the drop in local condo market demand and an increase in inventory have led to a fall in condo prices. This is good news for potential buyers but bad news for investors who purchased units at the peak of the condo boom. These investors now find themselves with overvalued units that are difficult to sell. The current inventory is nearly equivalent to two years’ worth of average market demand, leading analysts to predict that the market imbalance will continue until mid-2026.
Condo prices in the GTA saw a significant decrease in the last year, with the average price falling 5.1 per cent to $691,308. This represents an average value loss of $37,042 for condo owners since 2024.
REMAX
Decrease in Condo Sales and Starts
Not only have condo prices fallen, but unit sales have also significantly decreased. In 2025, there were 18,139 condo sales across the entire GTA, falling 11.9 per cent short of the 20,590 units sold in 2024.
All markets, except for Edmonton and Ottawa, have seen a decline in new condo starts. The GTA has experienced the most significant pullback in new starts.
Economic Challenges Impacting the Market
Several economic challenges have contributed to the decline of the condo market. A growing affordability gap, labour shortages, and skyrocketing construction costs have particularly affected markets like Toronto and Vancouver. Financing challenges, increased construction costs, labour shortages, and a widening affordability gap further undermined market stability in 2025, especially in Toronto and Vancouver.
“Investors have stepped back, leaving builders to reassess and determine what buyers in major cities truly want in their condominium and rental options before proceeding with new projects,” says Don Kottick, President of REMAX Canada.
Outperforming Neighbourhoods and Future Predictions
Despite the overall market decline, several GTA neighbourhoods managed to outperform their surroundings in 2025, including Bathurst Manor/Clanton Park, Etobicoke West Mall/Islington City Centre West/Kingsway South, and Don Mills/Banbury. Furthermore, despite the recent fluctuation, condominiums’ market share has increased from 31.6 per cent in 2015 to 34 per cent in 2025, with the average price of a condo in the GTA rising by almost 79 per cent over the past decade.
Don Kottick believes that 2026 will be a transitional year, with the condo inventory gradually being absorbed, leading to healthier market conditions by 2027. However, another recent industry outlook predicts that GTA condos will lose almost $43,000 in value in 2026, which would further decrease the resale value of units once considered a safe investment.
Lead photo by eskystudio/Shutterstock
