Let’s face it, the real estate market is undergoing significant changes. For condo owners, it’s no different. It is no secret that across Ontario, home and rent prices are fluctuating widely and, in some cases, dropping drastically. But what does this mean for condo owners? Whether you live in one yourself or rent it out to tenants, is it still a worthwhile investment?
In the past year, the real estate market in Toronto, a city renowned for its high-cost housing market, has experienced a significant decline. To add to this, a recent blogTO article states the prices are set to drop even more in the new year.
The article stated that a new Royal LePage market Survey released recently by the agency projected a modest decrease in the average home price in the GTA. This is excellent news for buyers who have waited years for the market to die down. As of the fourth quarter of 2025, the average GTA home price is $1,103,800. This is expected to drop by 4.5% to an average of $1,054,129 in the fourth quarter of 2026.
So, with this information in mind, is a condo still a worthwhile investment in 2026?
Condos: A Worthwhile Investment In 2026?
Back in April, a new Leger survey from Rates.ca revealed a shift in how Canadians view the condo market. 35% of Canadians nowadays believe condos are no longer a good investment, a five-point increase since the Rates.ca survey.
Many experts predicted a rebound in real estate following the Bank of Canada’s recent interest rate cuts. However, the bigger picture is more grim than the headline suggests.
Protect Your Condo with Confidence
Contact us for a personalized insurance quote tailored to your unit and lifestyle.
1 in 3 Canadians Believe Condos Are No Longer A Good Investment
The latest survey from Rates.ca now shows that 35% of Canadians believe condos are no longer a good investment. This is up 30% from the previous poll in March. This indicates that a third of Canadians believe the buzz of owning condos is behind us. On the other hand, only one in six (17%) of Canadians believe condos still are, and always have been, a good investment. This is a 22% decrease from the previous year.
Steve Yanni, a managing broker at HouseSigma, recently spoke to Rates.ca on the topic. He attributes this to a fundamental supply-demand imbalance in the market.
“Investor appetite has diminished in the current economic environment, leaving demand primarily driven by owner-occupants who typically seek larger, more functional spaces that smaller condos provide,” he stated.
15% Believe Condos Were Never A Good Investment
According to the Rates.ca survey, 15% of Canadians never considered condos a good investment. Between 2022 and 2025, the average resale price of condos in Canada fell significantly. In Toronto, they dropped 13.4%, in Vancouver, 2.7%. Just two years earlier, the cost of condos in both cities soared by more than 19%.
Overall, this means the confidence in real estate has diminished significantly. With this comes prices that reflect that. Just earlier this year, Royal LePage predicted a modest price increase by the end of 2025. However, the outlook was revised to flat growth by summer and now forecasts a tiny 1% increase in home prices across Canada. In the Greater Toronto Area, a 3% fall in home prices by year-end compared to 2024.
Who Are The Prospective Buyers in Canada?
According to the survey, over half of the respondents said they would not purchase a condo. However, the percentage of those willing to buy one in the future remained steady at 31% between the original survey in March and the current survey.
- Primary Residence: The number of people who are willing to purchase a condo for their primary residence is 21%. This amount has stayed roughly the same.
- Investment Property: On the other hand, the number of those willing to purchase a condo for an investment has remained low, at 10%.
Clara Leung, a real estate broker and mortgage agent at Swivel Mortgages, spoke to Rates.ca on the topic. She believes confidence remains low because the two fundamentals that previously justified condo purchases aren’t as predictable today. This includes “strong price appreciation and reliable net growth.”
Opportunities Arise For First-Time Homebuyers
For young buyers or those in big cities such as Toronto, condos remain the most accessible method of homeownership. Even as their potential for financial appreciation has decreased, this remains the case.
In the rates.ca study, 13% of respondents stated they don’t currently own a home, but aspire to at some point. On the other hand, 30% now say they have no plans to purchase, highlighting the growing challenges of entering the housing market today.
With this in mind, younger Canadians remain optimistic about condos, both as a place to live and as a worthwhile investment. Among those under 35, 39% express interest in purchasing a condo in the future. Only 27% of those over the age of 35 are interested in buying a condo.
61% of Canadians Over 35 Would Never Purchase A Condo
Meanwhile, 61% of Canadians over 35 say they have no intention of ever purchasing a condo. This shows a significant difference from the 43% of Canadians under the age of 35 who stated the same thing.
“We’re seeing many first-time homebuyers come off the sidelines, especially now since they have more choices, stronger negotiating leverage, and improved affordability after multiple Bank of Canada rate cuts,” Leung stated. “Not to mention some of the more recent mortgage lending changes to help first-time home buyers. Many are using this window to get into the market and to build equity.”
Where In The GTA are Condos Losing Their Value The Most?
Nowadays, condos in the GTA have doubled in number compared to pre-pandemic levels. According to The Toronto Regional Real Estate Board (TRREB), even with fewer new listings, active listings were up at the end of the third quarter. This reflects a high level of standing inventory.
While the whole condo sector has cooled off, the degree of cooling varies by region. Halton and Peel regions have experienced double-digit drops, while Toronto’s decline has been on the more modest end. Durham and other areas have seen some of the smallest drops.
According to Leung, regions such as Halton and Peel may see a larger decline due to shifting buyer preferences and return-to-office mandates.
“Buyers are prioritizing transit access and shorter commutes, which puts downward pressure on markets farther from major employment areas,” she states. “We’re also seeing buyers who moved farther out during the pandemic now looking to return closer to the city.”
At the end of the day, whether you believe a condo is a good investment is up to you. With an ever-changing real estate market, now is the best time to purchase one if it’s been on your bucket list for a while. Remember, every condo needs proper condo insurance. If you’re in the market, please don’t hesitate to contact us at isure. Contact us or request a quote today!
If you rent in Ontario, you’ve probably heard people talk Read more
Did you know that by law, unlike car insurance, you Read more
Purchasing your first home is an exciting milestone in any Read more
