Recent data from the Toronto Regional Real Estate Board (TRREB) reveals a new trend in the Toronto housing market, with some bachelor and one-bedroom condos now selling for less than $400,000. While this may entice renters to consider homeownership, experts caution that a rapid depletion of current inventory could trigger another housing shortage.
Realtor James Milonas from The Agency Toronto West shared a story of a long-term renter who, after years of saving, is now contemplating buying a condo in the city. Milonas has noticed a growing interest among renters in taking advantage of the current market conditions.
The average selling price of condos in the Greater Toronto Area (GTA) decreased by 5.1% year-over-year in the fourth quarter of 2025, with some Toronto neighborhoods listing condos for as low as $384,333 during that period. The overall average price for Toronto dropped to $690,607 in the same quarter, down from $715,920 the previous year, with 3,880 condo sales reported by TRREB, marking a 15% decline from the year before.
According to Jason Mercer, TRREB’s chief information officer, the price decline is a result of buyers gaining more leverage in negotiations compared to previous years. However, Mercer voiced concerns about the long-term impact, citing a decrease in new builds to meet market demands.
Realtor Anya Ettinger pointed out that many of the affordable units currently on the market are remnants of investment properties, as the rental market’s decline has made condo investments less lucrative. This surplus of investor-owned units has contributed to an increase in inventory.
Some Toronto renters explain why they prefer existing units over new builds due to factors like rent control and floor plan designs. Naama Weingarten provides insights into this trend.
While the current lower prices may benefit renters looking to buy, non-investors who entered the market in the past few years may face challenges. Ettinger highlighted the dilemma faced by these individuals, urging them to carefully evaluate their options.
Milonas encourages renters to seriously consider purchasing a property if their monthly mortgage costs are comparable to their current rent payments. He emphasized the importance of building financial stability through homeownership.
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