Untenable pro formas, skittish lenders and reluctant buyers are intertwined features of a condominium market collapse destined to further complicate Canada’s affordable housing shortage.

Canadian lenders may be reassessing the urgency of decarbonization, but they still express enthusiasm for the sustainable assets and impact investments that appear to be losing cachet in the United States.

Loan conditions are expected to be onerous for residential condominium developments again in 2025, following a year when many lenders pulled back on construction financing.