Condominium Apartment Market Risks in Toronto and Vancouver

Between 2022 and early 2025, condominium sales dropped 75% in Toronto and 37% in Vancouver, with inventories more than doubling and prices falling. Investors face financial distress, including up to 6% capital losses on 2024 pre-construction purchases in Toronto. Project cancellations surged, increasing 5- to 10-fold. Rising carrying costs and stagnant rents reduce investor returns, while weak demand and high inventories keep prices and rents low, discouraging new construction and worsening future housing shortages.