TORONTO — The Greater Toronto Area housing market continues to soften, but micro-condos under 500 square feet are taking the biggest hit, losing value significantly faster than larger units.
The average GTA home sold for $993,410 in August 2026, down 2.7% from a year earlier, according to Toronto Regional Real Estate Board data. Condo apartments fell from an average $642,195 in August 2025 to $617,593 this August, a decline of about 3.8%.
However, an analysis by Wahi and Real Property Solutions found that the smallest condos have suffered much steeper depreciation. Toronto micro-condos lost an average $152 per square foot in 2025 alone, the largest annual decline during the five-year period studied.
A major factor is the retreat of investors. Small condos were traditionally popular investment and rental properties, but higher interest rates have made the economics less attractive. At the same time, many end-users prefer larger homes with more bedrooms.
Buyers now have considerably more negotiating power. In July, condos sold below asking price in 98% of GTA neighbourhoods where at least five units were sold.
The result is a difficult combination for micro-condo owners: fewer investors, limited end-user demand and competition from larger condos that have become more affordable.