New condo sales in the GTHA fall to lowest level since 1991
New condo apartment sales in the Greater Toronto and Hamilton Area dropped to 1,599 units in 2025, the weakest annual total since 1991, as cancellations and unsold inventory surged.
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By Torontoer Staff
New condominium sales in the Greater Toronto and Hamilton Area plunged in 2025 to the lowest annual total since 1991, according to an Urbanation report published Wednesday. Sales fell 60 per cent from 2024 to 1,599 units, marking the fourth straight year of declines.
The slump has reverberated through the development pipeline: dozens of projects were cancelled, unsold inventory reached record highs and construction starts dropped to multi-decade lows.
Sales collapse and quarterly lows
Urbanation reports only 262 new condo units sold in the final quarter of 2025, the weakest quarterly result since 1990. Sales in 2025 were 91 per cent below the 10-year average and 95 per cent lower than 2021 levels, when investor demand was at its peak.
Pre-construction projects, which historically made up more than 70 per cent of new condo sales, accounted for less than half of sales last year. Buyers shifted toward newly completed buildings, with more transactions closing at occupancy and registration stages.
Cancellations and conversions to rental
Developers cancelled 28 active condo projects in 2025, removing 7,243 units from the market. That total more than doubled 2024 cancellations, which amounted to 3,469 units, and exceeded the previous high recorded in 2018.
Several cancelled projects were converted to purpose-built rental. Eight cancelled projects representing 2,189 units were repurposed in 2025, adding to 1,434 units converted in 2024. Urbanation says the conversions helped lift purpose-built rental completions, which rose 24 per cent year over year.
Construction starts, launches and inventory levels
Condominium starts fell sharply, down 63 per cent from 2024, and have declined 88 per cent over the past three years. There are 50,479 condos currently under construction, a 10-year low for active work.
Developers launched only 10 new projects in 2025, representing 1,425 units, and just 22 per cent of those units sold. The market for new launches has cooled considerably: sales for new launches dropped from 81 per cent in 2021 to the current low.
- New condo sales in 2025: 1,599 units, down 60% from 2024
- Final quarter 2025 sales: 262 units, lowest since 1990
- Cancelled units in 2025: 7,243 across 28 projects
- Completed and unsold inventory: 3,897 units, up 131% from 2024
Completed but unsold inventory surged to a record 3,897 units by year end, a 131 per cent increase from 2024 and five times the 2023 level. Urbanation also found developers took back roughly 10 per cent of pre-sold units, about 3,000 homes, in land registry records.
Prices and buyer behaviour
Average selling prices within new launches eased to $1,123 per square foot in 2025, a five-year low, down 8 per cent from 2024 and 18 per cent from 2022. Even so, new-build prices remained a substantial premium to resale product, which averaged about $856 per square foot in the fourth quarter.
Investor participation dropped, and sales shifted away from pre-construction. Urbanation says a larger share of purchases completed at occupancy and registration stages as buyers preferred ready product over speculative pre-sales.
Outlook and supply concerns
Despite record completions in 2025, Urbanation projects completions will decline over the next several years. The report forecasts completed units will fall to about 22,066 in 2026, with further declines through 2027. By 2029 the firm does not expect new condo deliveries.
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.
Shaun Hildebrand, Urbanation president
Hildebrand warned that if rental construction cannot absorb the shortfall from reduced condo completions, the region could face tighter supply and upward pressure on housing costs. The timeline for any supply squeeze remains uncertain, he added.
What this means for buyers and renters
For prospective condo buyers, the immediate market shows more available completed inventory and weaker launch absorption. For renters, the wave of conversions to purpose-built rental and higher rental completions in 2025 provided additional stock, but Urbanation cautions that those gains may not fully offset declining condo deliveries in the coming years.
The condo sector is now in an extended correction with material implications for future supply. Market participants and policymakers will be watching whether rental construction and new project starts can stabilise housing availability and affordability across the GTHA.
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