Amid the housing crisis, a record number of unsold condo listings are pouring into Toronto. A real estate agent near Jarvis Street and Dundas Street warned clients two months ago that even condos with panoramic lake views and balconies would have difficulty finding buyers quickly. His concerns became reality. At the end of April, the price was lowered by $21,000 to $589,900, but buyers are still not showing interest. It’s even difficult to show it. “The condo market right now is like a ghost town,” he said. About 11,000 Toronto residents have become homeless in the past three months.
Condominium apartments, generally the most affordable form of housing, are on the market in large numbers, but there is no demand. The homes on the market are primarily small units built for investors, many of whom, like the clients of the real estate agents, are looking to sell before their profit margins are wiped out by the slump in the Toronto condo market. “This proves that the attempt at a solution was a failure, as it was a policy that benefited developers, investors and speculators rather than ordinary people,” said Toronto City Councilor Gord Perkes, chairman of the city’s planning and housing committee.
There were 8,183 apartment units for sale in the Greater Toronto Area at the end of May, the highest number of active condo listings in recent years. “Pre-construction condo sales are down 74% this year compared to the 10-year average,” said Realosophy Realty CEO John Passalis. “We are not building enough housing, and the lack of low-rise housing is leaving people with limited mobility with no place to live,” said Passalis.
Retail investors prefer smaller units, and politicians have not reversed course, according to an analysis of MLS real estate data. The average listing price for units in the square footage range is $593,000. “In many ways, families have been effectively shut out of the condo market,” Parsalis said. “The price per foot is very high.” The average price of a resale condo in downtown Toronto is approximately $1,000 per square foot, while pre-sale condo units are priced at $1,500 per square foot, reflecting increased labor and construction costs and investors’ willingness to pay. Why do investors pay more?
Representative Passalis responded, “Most reasonable people would ask the same question.” “Especially after 2020, many people did not have a plan to close when purchasing a pre-construction condo,” said Passalis.