Key Takeaways Briefing | March 2026

Event Overview:

Hosted by Post City Magazines and Rotman’s David Feldman Centre for Real Estate and Urban

Economics, this annual roundtable addressed Toronto’s housing market amid sluggish sales,

elevated condo inventory, and policy shifts. Panelists emphasized practical timing, structural

trends, and affordability challenges for buyers, sellers, and investors.

Core Insights:

• Buy when you need it: The best time to purchase a home prioritizes personal needs (family,

lifestyle, location) over market speculation—don’t wait for a “perfect” bottom.

• Rentals as the future: Rental housing will dominate across all market tiers, driven by demand for

institutional-grade options, longer renting periods, and supply constraints on ownership.

• Price drives everything: “There are 3 reasons why real estate sells: price, price, and price” —

Michael Kalles. While marketing and staging remain key factors in a home sale, in today’s soft

market, realistic pricing trumps all.

• Condo rebound delayed: Expect no meaningful recovery until Q3–Q4 2026; early-year conditions

remain buyer-friendly with downward price pressure.

Policy & Demographics:

• Foreign capital needed: Canada requires foreign investors to boost liquidity, fund development,

and stabilize the economy—recent buyer bans remain the key risk in slowing future construction.

• Affordability crisis deepens: First-time buyer age rose from 35 to 40 in the past 5 years; pairing this

with 40-year amortizations means many could pay mortgages into their 80s, locking in long-term

debt for home access.

Implications:

• Buyers: Act on needs now if rates stabilize; target condos early 2026 for value advantages.

• Sellers/Investors: Price aggressively; hold rentals for yield; plan condo moves for H2.

• Market Outlook: Cautious optimism for late 2026, contingent on rate cuts and supply reforms.