New condominium sales in the Greater Toronto Hamilton Area sank to a 35-year low in 2025, marking the fourth consecutive annual decline in activity.

New condo-apartment sales in the GTHA fell 60% from 2024 to just 1,599 units, the weakest annual result since 1991, according to Urbanation’s year-end 2025 condominium report. Sales were 91% below the 10-year average and have dropped 95% since 2021. Market conditions showed no improvement late in the year, with only 262 units sold in the fourth quarter, the lowest quarterly total since 1990.

GTHA new condo sales repeatedly reached 30-year-lows in other months in 2025, Urbanation reported previously.

“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,” said Shaun Hildebrand, president of Urbanation.

Project cancellations hit a record high in 2025, with 28 active developments comprising 7,243 units cancelled during the year—more than double the number of units cancelled in 2024 and exceeding the previous peak set in 2018. Eight cancelled projects totaling 2,189 units were converted to purpose-built rental, adding to conversions recorded the year before.

The shift to rental, due to poor presales, was not enough to offset a sharp pullback in condo. Condo starts fell 63% year over year to 3,272 units, a multi-decade low, while purpose-built rental starts rose 24% to a multi-decade high, said Urbanation. Over the past three years, condo starts have plunged 88%, reducing the number of units under construction to a 10-year low.

Developers launched only 10 new condo projects in 2025, with just 22% of units sold. Average selling prices for new launches declined to a five-year low of $1,123 per square foot, yet new condos continued to trade at a significant premium to comparable resale units.

Completed and unsold inventory climbed to a record 3,897 units by year-end 2025, more than doubling from a year earlier. Developers are also contending with buyer defaults, with research indicating that about 10% of pre-sold condos registered in 2025 were taken back after purchasers failed to close.

“By the end of the decade, we know with certainty that there won’t be any new condo completions,” said Hildebrand. “What we don’t know is how far into the 2030s the supply crunch will last. If rental construction can’t fill the void, this raises serious questions around the impact on affordability.”

Photo: Shutterstock