Toronto's preconstruction condo turmoil persisted in 2026 as buyers reached closing and found appraisals far below purchase prices, leaving some unable to complete deals.
Some buyers faced losing deposits and possible legal action from developers after signing at market peaks in the late 2010s and early 2020s.
An expert who saw both downturns said most observers did not expect a repeat of the 1990s catastrophe, but today's market still carried troubling parallels.
Unlike the 1990s, current conditions featured low inflation, lower interest rates, and strict lending, yet building costs still failed to align with buyer demand.
A temporary tax rebate on new purpose-built homes was called helpful but insufficient, while shelved projects and court action signaled a difficult next phase.