Greater Toronto condo owners shifting to renovations as market downturn continues

The CN Tower can be seen behind condos in Toronto's Liberty Village community in Toronto on Tuesday, April 25, 2017. THE CANADIAN PRESS/Cole Burston

It’s a problem some condo buyers didn’t foresee when they locked in their home purchase during the pandemic, hoping that 600-square-foot space in central Toronto would be a bridge to eventually buying a house.

Mortgage rates have fallen and house prices in the Greater Toronto Area have been on the decline, but for now, a major drought in the condo market is keeping many of those owners from taking the leap they dreamed of.

Unable to sell their current units, and with hopes of moving to a bigger space on hold, experts say condo owners are increasingly pivoting — opting to improve their existing living quarters for the time being.

For those kick-starting a home renovation in today’s economy, there’s a sense that, “OK, we need to make the space that we have work,’” said Colleen Mc Grory, group product manager at HomeStars, a Canadian company that connects homeowners with service professionals.

“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.”

Condo sales in the GTA have plunged in recent years amid a severe mismatch between available inventory and buyer demand.

Consecutive years of high completion rates have meant a rush of new supply opening up. Meanwhile, falling rents have deterred real estate investors wary of potentially poor returns.

These conditions have sunk property values in the condo segment, leaving many would-be move-up buyers on the sidelines.

A report released last month by the Toronto Regional Real Estate Board said 3,880 condos changed hands throughout the region in the fourth quarter of 2025, down 15 per cent compared with the same three-month period of 2024. The number of new listings was also down year-over-year by 8.1 per cent and the average condo selling price fell 5.1 per cent to $652,945.

A recent survey by HomeStars suggests Canadians are coming around to the idea of fixing up their current home — regardless of property type — rather than looking for a new place to live. The survey found 34 per cent of respondents were more likely to spend money on a renovation in 2026 compared with last year, a figure that jumps to 43 per cent for those between 18 and 34 years old.

More than half of respondents said recent changes in house values made them more likely to extend or renovate their current home instead of pondering a move, including 59 per cent of 18 to 34-year-olds. More than two-fifths also cite current financial conditions, such as mortgage rates, making them more likely to stay put and start a home reno.

For condo owners, Mc Grory said there’s often a desire for a more personal touch on their living space relative to its original look.

“Every condo is kind of the same when they’re (constructing) the building. You finally got your own space, but it might not feel like you,” she said.

“So people might want to have a different countertop, a different fixture, different doorknobs even, little things that can make it feel a little bit more like your space that you live in and not exactly a cookie-cutter version like the rest of the building.”

Toronto-based condo renovation contractor Moose Condo Reno has seen an influx of inquiries lately about remodelling older units, said company CEO Mark Dayter.

He said the longer that families go on living in one place, the more desire there tends to be for extra space within — especially for those whose families have expanded since they moved in.

“In older units, they’re very divided. The older units have the kitchen enclosed and a lot of walls,” said Dayter.

“We will mostly go in there, often opening up the walls, making them open concept.”

Dayter said working in a condo can be a challenge, as space constraints limit the type of makeover possible compared with a house.

He also noted common “no-gos” outlined by condo management boards. Renovations are usually restricted to “everything inside the shell of the unit,” which excludes common elements and structural support points.

“If we don’t interfere with the concrete walls, reinforced slabs or support columns, the rest can be redesigned,” said Dayter.

Linda Pinizzotto, founder and president of Ontario’s Condo Owners Association, cautioned that it’s important to check with your condo board or property manager before undertaking a project, especially if it’s on a bigger scale. Often, those bodies must approve the renovation from the get-go.

“Even if they want to change flooring, for instance, regardless of what flooring is on there right now, they cannot just turn around and choose the vinyl flooring or laminates or hardwoods or whatever without getting approval from the board,” she said.

“Otherwise they’re going to be asked to remove it.”

She said those looking to refresh their homes in a cost-effective way often opt to repaint the unit, replace the baseboards or remove popcorn-style ceilings.

A makeover to the bathrooms or kitchen can also be a way to give the home a new look, without breaking the bank on a fuller redesign to the main rooms.

Despite the grim outlook for the resale market right now, Dayter said it’s important when embarking on a project to consider the possibility that the condo unit won’t always be yours.

That means keeping the place as “functional as possible” rather than just “going for a look” — for instance, when it comes to maintaining adequate space for kitchen appliances.

“When we go in and do the renovation, we tell our clients, as much as you love the property and you want to make it yours, you have to always think about reselling the unit five to 10 years down the road,” Dayter said.

“All the changes that we’re doing today should be appealing to potential clients that would purchase the unit after you.”

This report by The Canadian Press was first published March 15, 2026.

Sammy Hudes, The Canadian Press