For new homebuyers in the Greater Toronto Hamilton Area, 2025 marked a year of clear shifts in where opportunity is emerging, and where patience may be rewarded.
Why it matters for new homebuyers
According to the Zonda Urban Q4-2025 GTHA report for condominium apartments and townhouses, the balance of new-home supply is changing. Townhouses are now driving more than half of all multi-family sales, completed condominium inventory is growing, and fewer new projects are launching. Together, these conditions are giving buyers more choice in certain segments, more time to make decisions, and a different mix of housing options than the market has offered in recent years.
A total of 3,296 multi-family new-home sales took place across the GTHA, split between 1,533 new condominium apartment sales and 1,763 new townhouse sales. For the first time in more than 15 years, townhouse sales surpassed new condominium apartment activity, accounting for 53 per cent of the market. The change signals a meaningful rebalancing in new-home options, particularly for buyers seeking ground-oriented housing.
That shift stands out even more when viewed alongside other major Canadian markets. For perspective, Vancouver’s preliminary 2025 totals came in at just over 6,000 units, a level that remains well below that market’s historical norms.
On the condominium side, supply dynamics are evolving quickly. Built but unsold inventory from post-2020 launches climbed to 2,079 units as 28,856 condominium apartments reached occupancy in 2025. Zonda Urban expects that built inventory to double again by mid-2026, a trend that could expand near-term choice for buyers focused on recently completed homes.
Less condominium launches, but more options for townhomes
New project launches, however, remained limited. Only nine new condominium apartment projects opened for sales in 2025, a sharp contrast to the 101 launches recorded in 2021. At launch, these projects sold an average of 18 per cent of units, roughly in line with last year’s 19 per cent but far below the 75 per cent absorption rate seen in 2021. For buyers, that slower pace has translated into more time to evaluate options when new projects do come to market.
Townhouses followed a different trajectory. While momentum softened amid broader uncertainty after accelerating in late 2024, activity rebounded by year-end. Q4-2025 recorded 513 townhouse sales, the strongest quarter of the year, with several new townhouse sites scheduled to open by late February. The return of late-year strength suggests continued interest in this segment heading into 2026.
Luxury product played an outsized role in the condominium market. Five of the nine projects launched in 2025 entered the market at prices above $1,800 per square foot, all located in midtown neighbourhoods such as Lawrence Park and Forest Hill. Together, these launches represented just 278 units, selling at an average of $2,213 per square foot. In addition, $2-million-plus condominium sales increased among recently built projects in Yorkville and Rosedale, aligning closely with resale market patterns in those areas.
Construction activity highlights another key shift. New condominium apartment starts fell sharply in 2025, with only 3,621 units breaking ground. At the same time, purpose-built rental starts surged to 10,278 units. As of Q4-2025, the GTHA had 50,415 condominium apartments under construction, down 33 per cent year-over-year, alongside 28,623 rental apartments.
The Bottom Line: For new homebuyers, the takeaway is a market in transition. Townhouses are claiming a larger share of new-home activity, recently completed condominiums are becoming more available, and fewer new condo launches are changing how and when buyers encounter fresh inventory. Together, these trends are redefining choice across the GTHA and setting the stage for a very different new-home landscape in the year ahead
