The Toronto condo market is making headlines for all the wrong reasons. Sales of new condo units in 2024 plunged to their lowest levels in nearly three decades, with individual investors pulling back amidst falling rents and higher interest rates. But while the numbers may seem grim, there are valuable insights for both buyers and sellers in this shifting landscape.

Condo Market at a Crossroads

New condo sales in Toronto hit a 28-year low in 2024, according to Urbanation, as investors pulled back amidst falling rents and rising interest rates. Sales of new condos dropped 64% compared to the previous year, and unsold units in development surged to a record 24,277. However, this oversupply is creating a buyer’s market, with negotiable prices and favorable conditions for first-time buyers.

Rental Prices Are Dropping

The rental market is also seeing a downturn. The latest National Rent Report from Rentals.ca and Urbanation highlights a fifth consecutive month of rent declines across Canada. In Toronto, the average rent for a home fell slightly to $2,632 in December 2024. Year-over-year, one- and two-bedroom units were 6.4% and 7.2% cheaper, respectively, providing much-needed relief for tenants in one of Canada’s most expensive markets.

Shared accommodations saw the steepest drop, with rents decreasing by 9% to $1,194 per month. This reflects increased supply and waning demand for shared housing units.

National and Regional Trends

While rents are declining nationally, Ontario remains one of the priciest provinces for renters. Oakville, for example, ranks as the third most expensive city in Canada, with average rents of $2,892 per month. However, Toronto renters are benefiting from more significant price drops compared to the national average decline of 3.4% year-over-year.

On the flip side, Quebec City experienced the highest rent increases in Canada, rising 14.9% to $1,763. Meanwhile, Vancouver continues to be the most expensive city for tenants, with an average rent of $2,882, while Regina is the most affordable at $1,308.

Opportunities for Buyers and Renters

With rental prices dropping and condo sales slowing, 2025 could be a pivotal year for renters looking to save and buyers aiming to enter the market. For buyers, the oversupply of condos creates opportunities to negotiate favorable terms. For renters, declining rents offer a chance to secure more affordable housing in a market that has been historically expensive.

Key Takeaways for Navigating the Market

For Sellers: Stay competitive by pricing realistically and showcasing properties effectively.

For Buyers: Use the current market conditions to negotiate better deals on condos.

For Renters: Take advantage of declining rents to find more affordable options.

Ready to Navigate Toronto’s Changing Market?

Whether you’re buying, selling, or investing, our team at the Daryl King Team can help you make informed decisions. Contact us today for personalized real estate advice, or follow our blog for more insights into the GTA market.