Toronto and Vancouver Condo Markets Diverging Paths Amid Supply and Policy Shifts
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The condominium markets in Vancouver and Toronto are showing starkly different trends. Toronto is experiencing a significant decline in condo prices—around 20% since last year—driven by an oversupply of investor-focused units, policy changes targeting investors, and overall economic uncertainty. In contrast, Vancouver’s market remains more stable, with prices holding closer to previous peaks despite rising inventory and slower sales.
This divergence is largely due to differences in supply and demand dynamics. Toronto faces a glut of smaller condos aimed at investors, resulting in weaker buyer interest and falling values. Vancouver’s smaller scale and continued development of rental units have helped maintain a more balanced market. Both cities have introduced measures like vacant home taxes and regulations on short-term rentals to temper investor activity, but these have had a stronger effect in Toronto.
Looking forward, Toronto’s condo market is expected to remain under pressure until at least 2027, as new construction slows and demand gradually catches up. Vancouver may see some price softening in the short term, but it is projected to stabilize and recover by 2026 or 2027 as interest rates ease. The differing trajectories highlight how local supply conditions and policy environments can create distinct real estate landscapes even within the same country.
Read the full article on: REAL ESTATE MAGAZINE
