The smallest units in the Greater Toronto Area (GTA) condo market are experiencing the largest price drops , with micro condos losing value at roughly twice the rate of larger ones, according to a report by real estate platform Wahi Realty Inc. Brokerage.
The report said Toronto’s smallest condos are taking the biggest hit in the market downturn , as those under 500 square feet declined 12.2 per cent in value between 2020 and 2025.
By a large margin, Toronto’s micro condos have consistently seen the strongest depreciation in recent years. To compare, micro condos in Vancouver gained 4.9 per cent in value.
“We know from our own research that most Canadians ideally want at least three bedrooms in a home, so micro units with one — or in many cases, zero — bedrooms have much more limited appeal for end users,” said Real Property Solutions and Wahi economist Ryan Mclaughlin.
Mclaughlin said another factor is there being so many deals on the condo market right now, and active buyers having the opportunity to purchase larger units than they may have been able to afford previously.
In 2025 alone, GTA micro condos lost an average of $152 per square foot in value year-on-year — the steepest decline of the five-year period, Wahi said in its report, which looked into the per-square-foot appraised values of GTA and Greater Vancouver condos.
It said that condo prices in July were bid down in 98 per cent of neighbourhoods in the GTA where at least five units changed hands.
Despite recent annual depreciation across all asset types in both cities, with the exception of all but the smallest condos in Toronto, appraised values stand higher than five years ago.
Meanwhile, GTA units between 500 and 700 square feet fell 6.2 per cent, compared with a 19.4 per cent increase in Vancouver.
While both the single-family home and condo segments, respectively, have experienced reduced demand, 92 per cent of neighbourhoods were in underbidding territory for single-family homes and the latter has been especially sensitive to the exodus of investors.
“Without investor demand to support the market, condos have become a tougher sell across the GTA, particularly for the smallest units,” said Mclaughlin.
The report said that prior to the pandemic pricing peak when a surge of new condos launched, purpose-built rental construction had been lagging for decades. The condo market had effectively become a secondary rental market, with investors purchasing smaller high-rise units to lease out, it said.
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