OTTAWA, ON, Sept. 24, 2025 /CNW/ - As condominium market conditions in the Greater Toronto Area (GTA) deteriorated over the past year, many have compared the situation to the condo market crash of the 1990s. Today's condo market in the GTA does share some similarities to the crash in 1990s, however, a new Canada Mortgage and Housing Corporation (CMHC) analysis titled "Is Toronto's condo market downturn a repeat of the 1990s?" finds factors pointing to a less severe outlook than the 1990s.
While both time periods experienced rapid price growth driven by increased demographic demand and high investor enthusiasm and both were weakened by interest rate hikes, some major differences must be considered. These include today's persistent lack of supply in the GTA, greater economic diversity and stability compared to the 1990s, and stricter lending rules for both developers and buyers.
Read the full report on CMHC's Housing Observer.
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SOURCE Canada Mortgage and Housing Corporation (CMHC)
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