Toronto’s condo market has seen plummeting sales, skyrocketing listings and prices on the decline, trends that experts say will continue well into 2026. While the numbers are jarring — in 2025’s second quarter, condo prices dropped 6.3 per cent year-over-year in the city of Toronto, and sales were down 20.9 per cent — for savvy investors with an eye for condo remodelling, this is a major opportunity, one that won’t come around again for decades once it’s gone.
Just a few years ago, the condo market was almost completely unattainable. Now, prices are not only more affordable but some are even a steal, if you know where to look. In Toronto, the average price per square foot has plummeted 24 per cent from the February 2022 peak of $1,063, dropping to $807 in September. Condo sales are 90 per cent below the 10-year average right now, according to the Building Industry and Land Development Association. New condo sales in particular are faring poorly, falling to their lowest levels since 1990.
A series of interest rate hikes over 2023 and the first half of 2024 scared off investors — a segment which normally makes up to 70 per cent or more of buyers in Toronto — from the market. Not even seven consecutive rate cuts over the end of 2024 and beginning of 2025 has managed to entice them back, leaving Toronto with an all-time high of condo listings, especially the tiny, cookie cutter new builds languishing on the market (just 118 of which sold in August, down 59 per cent from the same month in 2024). Toronto has finally realized that no one wants to buy and start a family in these unlivable units. Instead, it’s the older, larger condos in the city that still attract attention.
Investing in an older unit with more square footage in Toronto is the best way to capitalize on the city’s current market conditions and appeal to buyers looking for livability above all. But you don’t have to settle for an older layout and ancient appliances, because the best way to squeeze every drop of value you can out of your investment is with smart condo renovations to unlock its full potential.
At Easy Renovation, a Toronto-based, full-service design–build renovation company, you’ll be supported from start to finish to help turn your bargain condo into a modern, livable home (and give you an amazing return on investment). Specializing in kitchen, bathroom and condo remodelling, their turnkey process begins with design and 4K 3D renderings and ends with not only materials and construction but seamless project management. Condo renovations can be daunting, whether it’s finding contractors you can trust or spending days procuring fixtures and finishes. With Easy Renovation, those difficult decisions are made simple and stress-free: the company takes over every step of the process, consulting with you one-on-one to create the renovation of your dreams. For an investment property you secure during this condo market downturn, the top priority is updating the home so that its long-term property value rises, whether you decide to rent or sell it down the line. Their specialized team will help you maximize square footage, a luxury afforded only to those who look to older units: the median condo size in Ontario has shrunk from 965 square feet in the ’70s to 658 square feet today. They’ll also assist in modernizing the interiors, bringing their professional design team in to align your space with today’s opportunities on the market.
Toronto’s condo market may be in a slump, but that means now is the time to jump on undervalued, affordable older units and invest in condo renovations — before the market bottoms out. Condo starts have plummeted, with no end in sight, according to RBC: there were 10,558 starts in August 2025, versus 33,088 in August 2023 and 24,579 in August 2024. When Toronto’s glut of inventory eventually clears, there will be major future supply shortages, inevitably driving up condo prices again.
Forecasting by RBC predicts that inventory will begin declining by early–2026, leading to renewed demand in the condo market by the end of 2026 and beginning of 2027. Investing in an older unit with more space now, when prices are the lowest they’ve been in years, is the smartest way to prepare for when the market turns. With the right condo renovations in place, your return on investment will be bolstered by the momentum of the market and the eventual lack of supply that will drive up demand for larger, more livable condos like yours.
