Condo buyers’ priorities have shifted in recent years. In this Q&A, Don Kottick, president of REMAX Canada, explains how owners can meet these evolving expectations, improve the long-term value of their homes, and what the condo market may look like heading into 2026.

Condos remain one of the few affordable housing options for first-time buyers and downsizers. How do you see this market evolving into next year?

Kottick: Condos remain an important housing option in urban centres as they offer a relatively more affordable entry point compared with single-family homes, while still providing close proximity to transit, employment and other amenities. The interest rates coming down throughout 2025 have also been encouraging for buyers who had previously adopted a wait-and-see approach.

At the same time, the condo market is seeing slightly older buyers, moving in with their partner or family, requiring more living space. As a result, previous popularity in smaller units has tapered off. The shift in preferences explains why some of the current inventory, built for young first-time buyers, is not moving as quickly as expected.

Heading into 2026, demand for condos is expected to pick up amid ongoing affordability challenges, but the focus will increasingly be on units that accommodate these evolving needs. Condos with well-designed layouts, space, additional amenities, and maintenance are likely to attract the most interest. Condos aligned with these evolving buyer expectations will serve as a more practical and desirable housing choice.

Some owners are grappling with the challenge of aging buildings and rising maintenance costs. What steps should they take to protect and increase the long-term value of their condo?

Kottick: Owners should focus their efforts on what today’s buyers are looking for: functional, comfortable and adaptable spaces. That means units with better layouts, and areas that can accommodate both family space and working from home. Affordability is less impactful when these needs are not met; needs that have become more essential in recent years, helping attract buyers who view the condo as a long-term investment rather than a temporary stopgap.

Beyond units, the shared spaces and common areas throughout the condo also play a big role in how attractive the condo will be perceived by buyers. Well-maintained lobbies, hallways, and amenities signal to buyers that the building is well cared for and managed, boosting buyers’ confidence in its overall quality. This further highlights the importance of proper maintenance and transparency regarding the condo’s reserve fund —– money set aside to cover major repairs or replacements such as roofs and elevators.

When owners shift their focus to the evolving needs and preferences of buyers, units can attract more interest and sell faster notwithstanding economic conditions. As more buyers enter the market in 2026 with declining pessimism, properties reflecting these needs upfront will see stronger demand.

Canada’s condo market is in a deep freeze. What’s holding it back now, and what’s needed to turn it around?

Kottick: The current headwinds are a result of overlapping factors. Historical borrowing costs and buyer hesitancy had suppressed demand, particularly among first-time buyers who are often the primary purchasers of condos. Affordability remains a primary challenge for many buyers, even as interest rates have gradually eased through 2025. At the same time, an oversupply in large urban markets – especially Toronto and Vancouver – have kept prices from appreciating, resulting in stagnation. Investor activity, which had helped prop up demand, has also slowed due to tighter mortgage stress tests and changing rental yields.

Resuscitating the condo market will likely require a combination of actions: Policy incentives, lower interest rates, renewed buyer confidence, and, perhaps most importantly, stronger alignment between existing supply and evolving buyer expectations. Developers and owners will also need to adapt their approach to focus on creating and maintaining more modern, liveable units to meet evolving affordability and lifestyle needs. A measured recovery is possible, but it will require time and concerted effort from key decision-makers and market participants.

Don Kottick is president of REMAX Canada.