Canada’s condo market is in sharp decline — and suburban areas are bearing the brunt. A new report from Moody’s Analytics reveals that condo prices in Toronto’s surrounding communities, like Halton Hills, have plunged by over 50%from their peak. Nearby areas such as Brampton, Mississauga, and Oakville have also seen dramatic price drops, far outpacing the declines in Toronto’s urban core.

In British Columbia, suburbs like White Rock and West Vancouver have seen 30–40% price declines, compared to the national average condo price drop of about 8%.

Moody’s attributes the downturn to a glut in supply. During the pandemic, remote work drove a rush to the suburbs, pushing prices up and prompting a development boom. But with interest rates now elevated, those gains are reversing — especially in areas farther from city centers.

Toronto’s condo market tells a stark story: sales have dropped 75% since mid-2022, and inventory for pre-construction units is 14 times higher than it was just three years ago, according to the Canada Mortgage and Housing Corporation.

While single-family homes have shown signs of recovery, the multi-family condo market continues to struggle. Moody’s warns that if interest rates stay high and newly built units flood the market, distressed sales could become more common, pushing prices down even further.

With no quick fix in sight, the condo market — especially in suburban Canada — may be facing a long road to recovery.