A fix to revive slumping new condo sales will be tricky to execute in current market conditions, which have chased off investors in Toronto and Vancouver.

Companies invoking return-to-office mandates have spurred renewed leasing activity in some cities and economic sectors, particularly seen in Toronto's downtown Class A inventory in Q3 2025.

Fallout from higher interest rates may continue to subdue multifamily development, but lenders express more confidence in prospects for new purpose-built rental and high-rise condominium projects next year.

Industry analysts cite Canada’s demographic trends and seemingly chronic housing supply-demand imbalance as fundamentals that should drive robust returns on new purpose-built rental projects.