Hardly anyone is building or buying condos in Toronto anymore as market flops

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Toronto News

Real,Estate,Housing

Though higher interest rates and unyieldingly prohibitive home prices have made Toronto completely unaffordable to all but a select few, the housin...

The market is on track to see more activity and even higher prices in the months to come — that is, with the exception of one segment.

With only 1,461 units sold in the GTHA during the first quarter of 2024, the firm writes that the market is in the second-worst slump since the financial crisis of 2009. In response to this dismal level of activity, developers are"dramatically" pulling back on launching new complexes in and around the city, with 75 per cent of new condo buildings opened so far in 2024 debuting in York Region rather than Toronto proper.

As Urbanation notes,"with pre-construction sales falling well below typical construction financing requirements of at least 70 per cent absorption, construction starts have experienced a sharp decline." Some 60 buildings that were due to open this year have also halted progress in wait.

 

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