Once seen as an easy ticket into the real estate market, condominiums are starting to lose their appeal among Canadians. A new survey from Leger, commissioned by Rates.ca, paints a clear picture: nearly a third of Canadians (30 percent) say they no longer view condos as a worthwhile investment. And honestly, it’s not hard to see why.
Only 22 percent of those surveyed still believe condos are a good investment. Meanwhile, a staggering 57 percent of respondents said they wouldn’t buy a condo under any circumstance. That’s a sharp indicator of shifting sentiment, especially in a country where real estate has long been viewed as one of the safest bets for growing wealth.
This was the first time Rates.ca conducted such a survey, so there’s no historical data to compare. But it’s easy to connect the dots. Years of aggressive pre-construction sales have flooded the market with inventory, and that oversupply is now starting to drag prices—and enthusiasm—down.
“There’s an abundant inventory coming up,” mortgage agent Kevin Wong noted in the report. And while prices have managed to stay relatively steady so far, sales are declining. It’s a classic case of too much supply and not enough demand, with buyers having more options and less urgency to jump in.
The situation is made even tougher by high interest rates, weaker rental markets, and rising costs for condo owners. Property taxes and maintenance fees continue to climb, slicing into any potential profit an investor might hope to earn. According to Rates.ca, rents have fallen 2.8 percent over the past six months compared to 2024—another blow to the bottom line for landlords.
That said, condos aren’t completely out of favor. They’re still an attractive option for some first-time buyers. In fact, 45 percent of first-time buyers say they’re considering purchasing a condo. Younger Canadians, particularly those aged 18 to 34, remain the most optimistic, and those living in urban and suburban areas are slightly more likely to see condos as a good investment.
But affordability remains a major barrier. The average condo price across Canada is $520,100, requiring an income of around $125,500 to qualify. Most Canadians, on average, fall short—even by a few hundred dollars. In places like Toronto and Vancouver, the gap is even wider, making it feel almost impossible for many would-be buyers to get their foot in the door.
Urban cores like Toronto have simply become too expensive for many, pushing investors and homebuyers alike to look toward more affordable and landlord-friendly markets such as Calgary and Edmonton. In Toronto alone, there were 6,450 condo listings at the end of 2024—a whopping 43 percent jump from the year before. More listings mean more choices, but it also means more competition for sellers and lower leverage for asking prices.
At the end of the day, condos are no longer the slam-dunk investment they once were. Rising costs, a softening rental market, and oversupply are changing the game. For now, it seems that for a growing number of Canadians, the dream of owning a condo—either to live in or rent out—is starting to lose its shine.
