The Toronto condo market is experiencing a significant decline amidst a broader housing crisis.
From April to June, condo sales in the Greater Toronto and Hamilton Area dropped by 66% compared to the same period last year, reaching the lowest levels in decades, aside from the early pandemic months.
High home prices are pushing many people out of the buying market and into expensive rentals, often small condos owned by investors.
Economists suggest that the market has not fully reacted to the recent interest rate cuts by the Bank of Canada, with potential buyers needing larger reductions to afford purchases. The market is heavily influenced by investors and speculators, resulting in a mismatch between the condos being built and what residents need.
Despite efforts to increase housing supply, prices remain unaffordable for most families, with the median cost of condos and homes far exceeding the average household income.
This leaves many people with no choice but to continue renting. The imbalance between supply and demand continues, underscoring the ongoing housing crisis in Toronto.
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