Toronto’s condo market nightmare could be spreading to Vancouver

“There are a lot of condos that were sold [in Vancouver’s downtown district] in the last three years… most of them were investors… And those are sitting empty.” — Justin Prasad, Financial Advisor at BlueShore Financial

Justin Prasad of BlueShore Financial warns that Vancouver is facing a mounting condo crisis mirrored in Toronto: a surge of investor-purchased “micro-units” now complete, yet left vacant and financially burdensome. With sales in Toronto down 75% and Vancouver down 37% since early 2022, these tiny one-bedroom, one-bath units—designed for quick investor turnover—are plagued by oversupply, falling rents, stricter Airbnb rules, and declining immigration. Prasad notes that many buyers are abandoning their units because appraised values are much lower than expected, or they can no longer afford the carrying costs. He expects this imbalance to persist for at least another 12 to 24 months, until demand and supply realign.

In the short term, increased inventory is easing rent pressures—a silver lining— but CMHC cautions that the condo slowdown could suppress future housing development, as builders cancel projects at a much higher rate: Toronto fivefold and Vancouver tenfold since 2022. Overall, Prasad’s observations highlight a deep correction in Canada’s condo markets, triggered by investor overreach, that will take time to stabilize and may limit new housing supply down the road.

Want your spokesperson featured in top-tier media? Magnolia Marketing Communications builds strategic PR programs that deliver real results. From message development to media coverage, we help leaders show up with clarity and confidence, where it counts.

Let’s talk about how we can elevate your brand. Contact us today.