Toronto’s condo market is undergoing a significant shift. Major developers like Republic Developments are converting planned condo sales into rental projects, citing a fundamental disconnect between construction costs and buyer affordability. According to new Canada Mortgage and Housing Corporation data, rental apartment starts in the Toronto area surged 82% in the first half of 2026 compared to the previous year. The trend reflects multiple market pressures: weak pre-construction demand from investors, buyer hesitation about purchasing unbuilt units, and challenges affording down payments despite stable incomes. Real estate professionals note that existing inventory must clear before new condo projects gain traction. While developers expect eventual market recovery, the shift toward rentals may help stabilize rent prices and provide affordable housing options for families saving for homeownership. Government incentives, including federal tax rebates and low-interest loans, are supporting rental construction across the GTA. For a complete analysis of this market transformation and what it means for buyers and renters, visit the original article on BNN Bloomberg.
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