'Somewhere to put worker bees': Why Canada's micro-condos are losing their appeal

BBC News - WorldCenterEN 5 min read 100% complete January 3, 2026 at 01:05 AM

AI Summary

long article 5 min

Micro-condos, once a growing trend in Canadian cities like Toronto and Vancouver, are rapidly losing value as Canada's condo market experiences a significant downturn. These small units, often under 600 sq ft, became popular due to high land values and were primarily purchased by investors for rental or resale. Construction of micro-condos surged after 2016, now comprising a large portion of Toronto's condo market. However, with a glut of unsold units, micro-condo values are plummeting faster than larger units, with some reselling for significantly less than their original purchase price. The downturn has sparked debate about developers prioritizing investor needs over livability by building these smaller, more affordable units.

Key Entities & Roles

Key Player Opposition Context

United States 40% National Association of Realtors 40% Nadia Evangelou 40% Vancouver 50% Statistics Canada 60% Maggie Hildebrand ×270% Toronto ×680% Canada ×390%

Keywords

micro-condos 100% real estate market 80% condominium market 70% housing affordability 60% real estate investors 60% market downturn 50% toronto 50% small units 40%