Toronto Condo Sales Stagnate as Builders Face Market Challenges

Toronto’s condominium market has seen a significant downturn, with builders halting sales on thousands of units. Between 2020 and 2025, data from the Building Industry and Land Development Association (BILD) indicates that 25 projects have stopped sales on over 3,200 new units. This trend reflects a broader stagnation in the city’s housing market, which is now nearing a complete standstill.

According to Dave Wilkes, president and CEO of BILD, the phrase “projects not pencilling” encapsulates the current reality. He explained to Global News, “From a builder’s point of view, projects aren’t proceeding; they’re not getting off the ground.” The inability to initiate new projects is concerning, as it leaves a gap in the supply of much-needed housing.

A closer look at the data reveals that six projects ceased sales in 2020, followed by five more in 2021. In 2022, the number ballooned to 10 projects abandoning their sales attempts, with an additional four folding in 2023. Notably, no projects stopped selling in 2024 or 2025, primarily because fewer than 10 highrises have attempted to launch in the last two years. Builders are grappling with high construction costs, making it challenging to attract buyers.

Wilkes emphasized the urgency of the situation, stating, “It’s just that they can’t get off the ground because that cost to build has reached a point which is just far too high.” Without new developments, the region may face a “severe shortage of housing” by 2027 and 2028.

In October 2023, only 54 new condos were sold in Toronto, a sharp decline from 145 in October 2022 and 457 in October 2021. This decrease is critical for builders, as most condominium projects require a significant percentage of units to be sold to secure financing for construction.

These troubling housing figures align with findings from a recent report by the University of Ottawa’s Missing Middle Initiative. The study revealed a 51 percent drop in condo apartment starts during the first three quarters of the year, along with a 43 percent decrease in ground-oriented housing starts. In contrast, purpose-built rentals saw a 42 percent increase compared to previous years.

Richard Lyall, council president, expressed concern over the data, stating, “We are staring into the abyss” regarding residential construction. Despite these challenges, the Ford government maintains an ambitious goal of building 1.5 million new homes by 2031. Officials are optimistic that recent legislative efforts will rejuvenate the market by spring, although critics remain skeptical about the feasibility of these plans.

As the Toronto housing market grapples with these challenges, the path forward remains uncertain. The combination of halted projects, escalating costs, and declining sales underscores a pressing need for effective solutions to stimulate both construction and buyer interest in the years ahead.