Condo sales in Toronto are declining, driven by an increase in supply and a reduction in demand, particularly for small units. In the last quarter of 2024, bachelor and one-bedroom units comprised only 20% of sales, while larger units dominated. The average rent for one-bedroom apartments has also fallen significantly. Experts indicate a trend towards larger, more livable spaces, suggesting the market is correcting itself after years of builders focusing on smaller units that lack functionality.
"Especially very small one bedrooms, under 550 square feet, demand is very slow," said Toronto-based real estate broker John Pasalis.
"Small is great from a price point perspective, but not if it's not functional, feasible or livable," said Christopher Wein, CEO of Equiton Developments.
"Now, he says the pendulum has to swing back," illustrating a shift in market demand towards larger, more functional living spaces.
"Over the last five years, developers have been building units that are too small to be comfortable, and the realities of the market are catching up with the industry," he added.
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