2025 Kicks Off with Multi-family Sales at Market Low in GTHA

Soaring Apartment Completions Double Standing Inventory

TORONTO, April 16, 2025 /CNW/ -- Zonda Urban reported today that sales of townhouses and condominium apartments remained at a multi-decade low with volume falling 50 per cent from a year ago in its Q1-2025 Greater Toronto and Hamilton Area (GTHA) report.

"The condominium apartment market continues to struggle to restart sales while under pressure completing a record-breaking number of new units. More apartments—both condominium and rental—began delivering in a six month period in the GTHA than in any time over the last 30 years at 22,292 units" says Pauline Lierman, Zonda Urban's vice president, market research.

• 1,174 new condominium apartments and townhouses sold in the first quarter, even with the recent market low in Q3-2024. Demand reversed between new condominium apartments and townhouses from late 2024.
• 733 new condominium apartments sold, up slightly from Q4-2024 while 441 new townhouses sold, a decline of 40% from Q1-2024. The chaotic economic environment including the tariff situation weighed more heavily on this market segment.

"Meanwhile, the steadier townhouse market pulled back some in the first quarter which we speculate is in part due to the volatile economic outlook. Neither market segment showed enthusiasm to launch new product," adds Lierman. "One new apartment project launched and six townhouse developments, the latter half compared to a year ago. What we are seeing is a greater willingness to reduce pricing."

• Zonda Urban tracked 31 developments, both apartment and townhouse sites, that reduced pricing during Q1-2025 which is the highest tracked.
• The average new condominium apartment sold for $1,150/square foot as of Q1-2025
  (average $789,843 for 690 square feet), up 1.2% from Q1-2024.
• While the average townhouse price at $1,129,941 (1,684 square feet) represented a 0.9% increase over Q1-2024.

Moving stagnant unsold inventory was the key motivation for price declines, as standing built condominium apartment inventory is rapidly increasing.

• Total unsold new condominium apartment units stood at 21,165 units with 708 unsold completed units

• • Unsold standing inventory jumped 95% from Q4-2024 (365).
  • A further 1,721 units are unsold in projects expected to occupy by the end of 2025, including 487 during the second quarter

Zonda Urban expects sales to remain slow during the first half of 2025, which will dampen further already slow start activity. During Q1-2025, 1,145 new condominium apartments started construction in the GTHA, the slowest Zonda Urban has tracked. In contrast, 7,934 units began occupancy.

The full Q1-2025 Zonda Urban GTHA multi-family take will be released soon. Also, register to join Zonda at the Toronto Frame event on Thursday, May 22 for the latest on housing trends, the local economy, and housing activity.

Visit ZondaUrban.com or follow us on LinkedIn and Facebook for more information.

About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.

Media Contact: Diane Begin, 224-836-5615, [email protected]

 

SOURCE Zonda