The pandemic prompted many condo buyers in central Toronto to secure compact living spaces, envisioning them as stepping stones toward homeownership. Yet, despite falling mortgage rates and declining house prices in the Greater Toronto Area (GTA), a significant slowdown in the condo market is hindering these owners from making the anticipated upgrades.
As condo sales have dropped sharply due to an imbalance between inventory and buyer demand, many owners are choosing to renovate rather than attempt to sell their properties. Colleen Mc Grory, the group product manager at HomeStars, notes a growing sentiment among condo residents that enhancing their current living spaces is necessary. “People are definitely more inclined to want to renovate the space they’re in rather than go out into the market and try to move up,” she stated.
A report by the Toronto Regional Real Estate Board indicates that the condo sales in the GTA fell by 15 percent in the fourth quarter of 2025 compared to the previous year, with just 3,880 units sold. Additionally, the number of new listings decreased by 8.1 percent year-over-year, and average prices dropped 5.1 percent to $652,945.
A survey conducted by HomeStars revealed a shifting attitude; 34 percent of Canadians plan to invest in renovations in 2026 compared to 2025, with interest particularly high among younger individuals aged 18 to 34, where the figure rises to 43 percent. The changing landscape of home values has prompted over half of the respondents to consider renovations rather than moving, with 59 percent of younger Canadians echoing this sentiment. Many cite current financial conditions, including mortgage rates, as reasons to stay put and renovate.
Many condo owners are looking to personalize their spaces, considering their units too uniform and lacking individuality. Mc Grory pointed out that “Every condo is kind of the same when they’re constructing the building,” leading to a desire for distinctive features like personalized countertops and fixtures.
Contractors, like Mark Dayter of Moose Condo Reno, report an increase in inquiries for remodelling older units. Families often feel the need for additional space as they live in their condos longer, especially if their family size has increased since moving in. “The older units have the kitchen enclosed and a lot of walls,” Dayter noted, highlighting the common trend of transforming these spaces into open-concept layouts.
However, renovations in condos involve specific challenges, often due to space limitations and restrictions set by condo management boards. These boards typically approve renovations only if they do not interfere with structural components. “If we don’t interfere with the concrete walls, reinforced slabs or support columns, the rest can be redesigned,” said Dayter.
Linda Pinizzotto, president of Ontario's Condo Owners Association, emphasized the importance of consulting with condo boards before undertaking any renovations, including seemingly minor projects like flooring changes. She noted that many homeowners opt for cost-effective refreshes by repainting, replacing baseboards, or making minor adjustments rather than full renovations.
Even though the resale condo market is currently bleak, contractors advise clients to think practically about their renovations. Designs should maintain functionality, especially in areas such as kitchens, where usability is essential for future resale value. “You have to always think about reselling the unit five to ten years down the road,” Dayter cautioned.
This shift toward renovation rather than relocation speaks volumes about current market dynamics and the adaptation of homeowners to make the best of their existing living situations, prioritizing comfort and individuality in their homes despite market uncertainties.
