The Decline of Micro-Condos in Canada: A Shift in Housing Dynamics

Sat Jan 03 2026 22:50:17 GMT+0200 (Eastern European Standard Time)

As micro-condos once appeared to be a modern solution for urban living, their waning appeal amid a housing market downturn sparks critical discussions about affordability and urban development in cities like Toronto and Vancouver.

Micro-condos in Canada are losing popularity as the housing market experiences a significant downturn, leading to a surplus of unsold units and decreasing values. High prices and a shift in immigration policies contribute to this trend, raising questions about the long-term viability of such small living spaces. With developers reassessing their strategies, the future of micro-condos remains uncertain as buyers lean toward affordability and quality of living.

Maggie Hildebrand's first apartment in Toronto had a kitchen, a dining table, a workspace, and a bed – all in the same 300-square-foot room.

It was a decent home at first, close enough to her job downtown and with all the bare necessities for daily living.

But it didn't take long for the 28-year-old to feel boxed-in. It was so isolating in that tiny space, she told the BBC. It definitely feels like it's just somewhere to put worker bees during the night.

Ms. Hildebrand lived in one of the city's micro-condos, a once rare sight in Canadian real estate that has become ubiquitous in the last decade thanks to fast-growing, high-rise developments in major cities like Toronto and Vancouver.

But - as Canada's condo market sinks to lows not seen in decades due to a series of market pressures - the value of these micro units is cratering faster than any others.

The condo market is experiencing a downturn not seen since the 1980s, with thousands of move-in-ready units sitting empty and unsold across Toronto and its surrounding regions. Over the last year, an unprecedented 18 condo projects were cancelled in the city, with experts expecting that number will grow as demand continues to plummet.

The downturn has reignited debate over whether developers catered too much to real estate investors by building smaller, more affordable units that minimised square footage to keep prices low in areas where land values are high, and which were often designed to be rented out or flipped for profit.

With so much inventory on the market in Canada, some micro-condos that had sold for half a million dollars a few years ago are now reselling for C$300,000 ($217,000; £163,000) or less – a price recently unthinkable in downtown Toronto, which is often cited as one of the most unaffordable cities in the world.

As the housing crisis continues to evolve, the future of micro-condos remains uncertain, with a potential shift towards building more family-friendly and spacious units that cater to long-term residents rather than short-term investors.