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Economic Viewpoint

Unsold Condos: Is Government Intervention Justified?

August 27, 2026
Kari Norman
Senior Economist

Highlights

  • Completed but unsold condos have accumulated as projects launched during much stronger market conditions reach completion amid weaker demand.
  • Ontario is lending up to $300 million to support private investors’ acquisition of about 2,200 units, which are expected to become a mix of market and affordable rentals.
  • British Columbia’s proposed $1.45 billion program also targets about 2,200 units through a publicly supported rent-to-own model. However, condos designed for investors may not meet the size, location and cost needs of long-term owner-occupiers.
  • Both programs could ease pressure on developers and lenders, helping preserve capacity for future homebuilding. But they could also limit the price declines that would normally help clear excess supply.
  • The key question is whether governments will receive enough affordable housing, financial returns and protection of future housing supply in exchange.

PDF Publication

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Unsold Condos: Is Government Intervention Justified? (PDF, 543 KB)
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.