One-bedroom Toronto condos have lost 14 per cent of their value since 2020 as larger units gain
A Wahi analysis of Toronto condo prices finds one-bedrooms have fallen 14 per cent since 2020, while three-bedroom units have gained 13 per cent, and sales of smaller units have dropped 39 per cent.
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One-bedroom condos in Toronto have lost 14 per cent of their median value since 2020, while larger units have moved in the opposite direction, according to a Wahi analysis reported by NOW Toronto on October 31.
Wahi, a Toronto-based real estate platform, found that median prices for one-bedroom condos fell to $480,000 in 2026, down from their 2020 levels. Sales of one-bedroom units dropped 39 per cent in the same period. Three-bedroom condos gained 13 per cent, reaching a median of $700,000. Units with four or more bedrooms gained 15 per cent to $715,000.
Wahi economist Ryan McLaughlin told NOW Toronto that the market overbuilt studios and one-bedrooms during the post-pandemic boom, often with layouts that buyers now find difficult to live in.
McLaughlin told NOW Toronto that many in the industry believe the market overbuilt studios and one-bedrooms with layouts that buyers find unlivable. "They have difficult shapes sometimes, your bed is in your kitchen, and people are living in 400 square feet, it's just awkward," he said.
Why smaller units are now struggling
During the 2022 market peak, smaller units offered a route into the market for first-time buyers because their lower total price was accessible even as prices per square foot stayed high. That calculation has shifted, McLaughlin told NOW Toronto. Buyers are now more willing to wait and save for a larger unit they can grow into, rather than buying a small space they will need to leave quickly.
"Especially now that the downsides of these units have become more apparent, and they're just not popular, and they're having a hard time selling them, and it's certainly difficult to start a family in a unit that's 400 square feet," he said.
Building activity is near zero
McLaughlin told NOW Toronto that new construction starts are near zero across all condo sizes as developers have pulled back in the overall market downturn. He said he would hope the next building boom would see more diverse unit sizes, but that could be a decade away.
"They're just not building. They're not starting anything. So, they're not starting these small units, and they're also not starting bigger units," he said.
What the new council has committed to
Mayor Olivia Chow committed during the campaign to starting construction on 10,000 more rental homes in 2027 and reaching 65,000 affordable and rent-controlled homes by 2030. Both commitments are tracked at /on/toronto-2026/tracker. The new City Council takes office November 15 and holds its first meeting November 18, 2026.
Questions this story answers
How much have one-bedroom Toronto condo prices changed since 2020?
According to a Wahi analysis reported by NOW Toronto on October 31, 2026, median prices for one-bedroom condos in Toronto fell about 14 per cent between 2020 and 2026, reaching a median of $480,000. Over the same period, sales of one-bedroom condos declined by 39 per cent.
Have any condo sizes gained value in Toronto?
Yes. The same Wahi analysis reported by NOW Toronto found that three-bedroom condo prices increased 13 per cent since 2020, reaching a median of $700,000 in 2026. Units with four or more bedrooms gained 15 per cent, reaching a median of $715,000.
Why are smaller condos losing value faster than larger ones?
Wahi economist Ryan McLaughlin told NOW Toronto that the market overbuilt studios and one-bedrooms during the post-pandemic boom, many with difficult layouts and limited liveable space. He said many of those units are seen as unlivable. Buyers are now less willing to invest in units they cannot grow into.
Are Toronto condo developers building more large units now?
McLaughlin told NOW Toronto that new construction starts are near zero across all sizes right now, as developers have pulled back in response to the overall market downturn. He said he hopes the next building boom, which he estimated could be a decade away, would see more diverse unit sizes.
Why were smaller units popular before 2022?
McLaughlin told NOW Toronto that during the 2022 market peak, smaller units offered a lower total price even though they cost more per square foot, giving first-time buyers a way into the market. Now that the downsides of small layouts have become more apparent and prices have fallen, those units are seen as a worse investment.
How does this connect to Toronto's housing commitments?
Mayor Olivia Chow's platform committed to starting construction of 10,000 more rental homes in 2027 and reaching 65,000 affordable and rent-controlled homes by 2030. Those promises are tracked at [/on/toronto-2026/candidates/olivia-chow#promise-rental-homes](/on/toronto-2026/candidates/olivia-chow#promise-rental-homes). The new City Council takes office November 15 and holds its first meeting November 18.
What is the current state of the broader Toronto condo market?
NOW Toronto reported on October 31 that Toronto's condo market has been facing a downturn, with sales and prices having declined from their 2022 peak. The decline has been sharper for smaller units, while demand for larger units with more liveable space has remained more stable, according to Wahi's analysis.
Where can I find information about Toronto's housing decisions?
Toronto City Council decisions on housing, zoning, and development are tracked through the promise tracker at [/on/toronto-2026/tracker](/on/toronto-2026/tracker), which follows what the mayor and each councillor committed to on housing during the election campaign.
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