Cost- Investor-owned condo listings, particularly in the GTA, rose substantially as carrying costs increased and rents didn't keep pace with what many investors had underwritten.
- As of 2026, there are early signs the pace of new investor listings may be moderating, though the segment remains meaningfully softer than its 2021-2022 peak.
- A large amount of pre-construction supply from investor-driven purchases years ago is still working its way through completion and resale, meaning the effect isn't fully behind the market yet.
Why the investor exodus happened
Many investors who bought pre-construction condos, particularly in the GTA, during the low-rate years found themselves facing much higher carrying costs once their units completed and their mortgages needed to be renewed or newly originated at higher rates — while rents, though up, often hadn't risen enough to offset that gap. That combination pushed a wave of investor-owned units onto the resale and rental market simultaneously, weighing specifically on the condo segment described in our Toronto update.
Where it stands in 2026
There are early signs the pace of new investor-driven listings may be moderating as rates have come down from their peak (see our rate update), improving the carrying-cost math for some investors. That said, the segment remains meaningfully softer than its 2021-2022 peak, and a substantial pipeline of pre-construction units purchased years ago by investors is still completing and reaching the resale market, meaning this dynamic hasn't fully worked through the system yet.
What would signal it's actually over
A genuine end to this dynamic would show up as: condo months of inventory (see our explainer) declining meaningfully rather than merely stabilizing, rents catching up enough to materially improve investor cash flow, and the pre-construction completion pipeline thinning out. None of these has clearly and durably happened as of 2026 — treat any single month's improvement with caution rather than as confirmation the dynamic has fully ended.
- Canadian Real Estate Association (CREA) — accessed September 2026