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For the first time in decades, no new condominium developments were introduced in the Greater Toronto–Hamilton region during the opening quarter of the year, underscoring a deepening market downturn as sales fell to their lowest level in over 30 years. Only a limited number of new units were purchased, marking a sharp drop from both the previous year and historical averages. This prolonged slowdown has reshaped industry activity, with many professionals shifting away from pre-construction sales toward resale and rental transactions. Recent launches have been largely confined to high-end or boutique projects with steep pricing, yet even these have struggled to attract sufficient demand as buyer hesitation persists.
Although purchases of newly completed units have seen a modest uptick, unsold inventory has climbed to record levels. Thousands of finished units remain available, representing several years’ worth of supply at the current sales pace, with many more still under construction and expected to add further pressure. Developers have responded by lowering prices on unsold units, but resale values have declined even faster, widening the gap between new and existing properties to historic levels. In some cases, smaller units have experienced significant price corrections, returning to levels seen years ago, making it increasingly difficult for new developments to compete.
Amid these conditions, many developers are delaying new project launches and scaling back construction activity, with some developments being cancelled or converted into rental housing. While completions remain relatively high, they are projected to decline in the coming years. Policy measures such as temporary tax relief and reduced development costs may help reduce existing inventory by encouraging buyers back into the market, prompting developers to offer incentives and discounts on completed units. Even so, investor demand for pre-construction properties has largely disappeared, with only a small group of cash buyers remaining active, primarily targeting discounted opportunities.