A Historic Collapse in Toronto's Condo Market

For the first time in recorded history, zero new condo projects launched in the Greater Toronto Area during the first quarter of 2025. Not a single one. New condo sales collapsed to just 246 units—down 52% year over year and a staggering 94% below the 10-year average.

Toronto resale condo prices have fallen roughly 25% from their 2022 peak, the largest correction on record. Yet despite these price drops, inventory continues piling up, with 92 months of supply for completed new units at current demand levels.

For prospective homebuyers watching this unfold, the question naturally arises: where should I be looking instead?

Why Toronto's Pain Creates London's Opportunity

London, Ontario has quietly become one of the most attractive alternatives to GTA living—and the Toronto condo crisis is accelerating this trend.

Consider the comparison: a new one-bedroom condo in downtown Toronto still commands $650,000 to $750,000, even after significant price corrections. In London, that same budget purchases a three-bedroom semi-detached home in Oakridge, a charming bungalow in Old North, or a spacious townhome in growing areas like Talbot Village.

The lifestyle mathematics have shifted dramatically in London's favour.

What London Offers That Toronto Can't

Space and Value London's average home prices typically range from $500,000 to $800,000 for family homes in desirable neighbourhoods. For buyers relocating from Toronto, this represents not just savings but a fundamental upgrade in living space and quality.

Genuine Community Character Neighbourhoods like Byron offer something increasingly rare: walkable village living with real amenities. Along Commissioners Road, residents enjoy Metro for groceries, grab coffee at local cafes, pick up dinner from Kashmere Grill or MeeSai's Thai Kitchen, and handle errands at Shoppers Drug Mart or Rexall—all without getting in a car.

Wortley Village offers a similar community feel, with boutique shopping and dining that rivals anything in Toronto's trendy neighbourhoods, minus the million-dollar price tag.

Natural Beauty and Recreation The Thames River winds through London, offering cycling and walking trails that connect neighbourhoods. Springbank Park along Commissioners Road provides over 300 acres of green space. Boler Mountain offers skiing in winter just minutes from suburban homes. Try finding that convenience in downtown Toronto.

Educational Excellence Western University consistently ranks among Canada's top institutions, while Fanshawe College provides excellent applied education. For families, London's school options—from Byron Northview Public School in the southwest to highly-rated schools in Masonville—rival anything in the GTA.

The Investment Perspective

Toronto's condo market correction offers a cautionary tale about over-concentration in a single asset class. When 11,000+ units get cancelled and developers convert unsold inventory to rentals, it signals fundamental demand problems.

London's market, while not immune to broader economic forces, shows more balanced fundamentals. The city's growth is driven by genuine migration and economic development rather than speculative investment. Our diverse economy—anchored by healthcare, education, manufacturing, and a growing tech sector—provides stability.

Supply Constraints Ahead

Here's the counter-intuitive insight from Toronto's crisis: today's cancelled projects become tomorrow's supply shortage. Developers sidelined now mean fewer homes available in three to five years. When demand eventually recovers—and it always does—those cities that maintained building activity will be better positioned.

London continues to see development, though at measured paces appropriate to our market. Buyers who position themselves now in established neighbourhoods like Westmount, Lambeth, or areas near the West 5 development benefit from current pricing while the long-term supply picture remains favourable.

Making the Move

For Toronto residents considering London, the transition often proves smoother than expected. The Via Rail connection provides convenient travel when needed. Many employers now offer hybrid arrangements that make distance less relevant. And the lifestyle upgrade—more space, lower costs, genuine community—typically exceeds expectations.

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Curious what your Toronto condo budget could buy in London, Ontario? Nickey Calford at Calford & Co. Real Estate Team specializes in helping GTA buyers discover London's best neighbourhoods and find homes that exceed their expectations.

Toronto's Condo Crisis: Why London, Ontario Looks Increasingly Attractive