At the corner of High Park Avenue and Annette Street in Toronto, a church was planned to be turned into a modern condo building. Construction began in 2019, and it was supposed to have 70 units. But since 2023, nothing has moved forward. The building sits unfinished and silent, with no workers and no activity.
One of the people affected is Phil Earnshaw. He paid a deposit of $280,000 in 2018 to buy a two-bedroom condo in that project. He thought he would move in after construction was done. But now the project has gone into receivership, meaning the developer couldn’t continue and had to let someone else take over. Phil and others like him are now waiting to get their deposits back. They are left with uncertainty about their homes and investments.
This is not a problem just at High Park. Across Toronto, many condo projects have been cancelled or are facing serious trouble. So far this year, 9 projects have been cancelled, according to Urbanation, a real estate consulting firm. Last year, 11 projects were cancelled, and this year the numbers are expected to reach that or even go higher.
A report by the Canada Mortgage and Housing Corporation (CMHC) shows that condo construction in Toronto is falling sharply. This drop is causing overall housing construction to hit its lowest point since 2009.
Michael Niezgoda, a senior manager at Urbanation, explains that in previous years, cancelled projects were mostly because individual developers faced money problems. But today’s situation is different. Now, many projects are struggling because fewer people are buying condos, and the cost of building is increasing.
He says that new projects need to sell at least 70% of their units before construction starts to get financing from banks and lenders. Without enough buyers, many developers can’t move forward. Urbanation is watching 16 condo projects with a total of over 5,000 units that have sold less than 40% of their spaces. This is a major warning sign.
In the past few years, many pre-construction condo units were bought by investors, who planned to rent them out or sell them later at higher prices. But now, these investors are turning away. The reason is simple — it’s not as profitable anymore. Prices have dropped, and demand is lower.
Phil Earnshaw remembers when he and his wife signed their purchase agreement. They thought they could rent out the unit until they were ready to move. But today, with prices lower and interest rates higher, it doesn’t make sense financially.
“Everything’s changed,” he says. “The math doesn’t work anymore. So I’m happy to get my money back.”
Interestingly, not all buyers are sad about cancellations. Some people who bought condos in the peak market, especially during or after the COVID pandemic, now feel lucky. They realize the prices they agreed to pay are too high compared to today’s market.
Real estate lawyer Bob Aaron hears from people every week facing this problem. “Buyers signed contracts when prices were very high. Now that the market has cooled, they’re relieved to get out of those deals,” he explains.
However, he believes that the slump won’t last forever. “Markets go up and down,” Aaron says. “Sooner or later, condos will be in demand again.”
Why are prices falling and demand shrinking? There are several reasons:
Higher Construction Costs: Materials and labour have become more expensive, making new projects harder to afford.
Fewer Buyers: Rising interest rates and uncertainty in the economy are making people cautious about investing in real estate.
Changing Priorities: After the pandemic, many people now prefer renting or living in more affordable areas.
Investor Pullback: Many investors are no longer seeing condos as a safe or profitable choice.
Together, these factors are making it hard for developers to move forward with new projects.
For people like Phil Earnshaw, this uncertainty is personal. Many buyers are waiting for their deposits to be refunded. Some are worried about their future housing plans. Others are relieved that they won’t have to commit to expensive homes that don’t make sense anymore.
For the city, this trend means fewer new homes being built, which could worsen housing shortages in the long term. However, it may also give buyers more time to find the right homes at better prices.
For investors, it’s a warning to be more cautious. Real estate is not as predictable as before, and profits may not be as easy to come by.
For developers, it’s a sign that the market needs careful planning and realistic expectations.
Experts like Michael Niezgoda and Bob Aaron believe that the market will eventually recover, but it may take time. Prices will likely fluctuate as economic conditions improve or worsen.
For now, they advise buyers and developers to focus on what’s sustainable. They should be careful with their investments and work with realistic goals. It’s also a reminder that housing markets can’t always depend on quick profits or speculation.
Toronto’s condo market is facing a difficult period with many projects being cancelled and demand shrinking. But while it’s challenging for developers and buyers, experts believe that the market will recover over time. For now, people need to be cautious, informed, and patient.
Nutritionist Deepsikha Jain recommends 1–2 tablespoons of flaxseeds—morning, before meals or as a sn
Dr. Rajiv Sood outlines five simple daily practices — activity, diet, stress care, sleep and check-u
Coconut water excels at fast rehydration after exercise; aloe vera juice supports digestion and skin
During a video call, 35-year-old Bisma Lalji's sudden back pain led to a Stage 4 breast cancer diagn
