Toronto real estate is full of contradictions right now. Sales are up, showings are busier, but prices are still sliding. At the same time, the size of new condos keeps shrinking — right when families need more space to stay in the city.
In this episode of the Under the Radar Real Estate Podcast, we dig into September 2025 market stats, spotlight under-the-radar neighbourhoods, and unpack the question: can families really live in Toronto condos?
📊 September 2025 Market Update: Buyers Regain Leverage
The latest Toronto Regional Real Estate Board (TRREB) numbers show sales up 8.5% year-over-year, while showings jumped 20%. Buyers have clearly returned to the market.
But it’s still a buyer’s market overall. Active listings are up nearly 20%, and the sales-to-new-listings ratio (SNLR) is sitting at just 35%, well below balanced market territory. Months of inventory are hovering around five months, meaning buyers have more choice and leverage than they’ve had in years.
Click HERE to download the full TRREB Market Report
⚖️ Balanced Markets in Select Neighbourhoods
Not all of Toronto is behaving the same way.
- West End (W02 & W03): Neighbourhoods like Bloor West, the Junction, St. Clair West, Fairbank, and Oakwood Village are closer to balanced territory with SNLR ratios around 42–44% and months of inventory under 3.5 months.
- East End (E01, E02, E03): Leslieville, East York, and the Beaches are trending towards seller’s market conditions, with months of inventory under 2.5 months.
The takeaway: headlines about “Toronto’s buyer’s market” don’t tell the whole story. Families shopping in under-the-radar neighbourhoods will face more competition than the averages suggest.
🏠 Why Families Feel Condos Don’t Work
One of the biggest themes this month comes from a powerful piece by the Missing Middle Initiative — “From Kraft Dinner to Condos: The Great Shrinkage.”
Over the past few decades, condo sizes have steadily shrunk:
- 1970s: 1,000+ sq. ft. was common
- Today: the average condo hovers between 600–700 sq. ft.
This downsizing has left families feeling that condos are simply “too small” to raise children. And the truth is, many three-bedroom condos built in recent years are under 900 sq. ft., designed more for investors and roommates than families.
🌆 Under-the-Radar Neighbourhoods for Families
Even with affordability challenges, families can still find livable options in Toronto.
- W03 (Fairbank, Rockcliffe-Smythe, parts of St. Clair West): Detached homes averaging under $1M, semis around $950K, and larger condos often at a discount compared to downtown.
- W04 (Weston, Mount Dennis, Briar Hill): Detached homes near $1M, semis averaging $876K, plus family-sized condos larger than the city average.
- C03 (Oakwood Village): A transitional pocket with entry-level luxury options, rubbing up against Forest Hill and Cedarvale.
These neighbourhoods offer families space, community, and access to transit — without being forced into the suburbs.
🏢 Family-Sized Condos Still Exist
Despite the shrinkage trend, there are over 280 three-bedroom condos currently available in Toronto. Many are over 900 sq. ft. and priced under $900K.
Examples include:
- Larger suites in Weston and Downsview with new finishes and skyline views.
- Select buildings in Liberty Village, King West, and near Yorkdale offering 3-bed layouts that work for families.
These units are rare — but they prove families can live in condos when square footage and planning are prioritized. Be sure to check out our recent video, Why Toronto Families Shouldn’t Dismiss Condos
🗝️ Why Policy Needs to Change
Developers have long maximized profits by cutting square footage and selling smaller units at higher prices per sq. ft. Without stricter rules, families get pushed out.
What Toronto needs:
- Square footage requirements for new buildings (not just “3-bedroom” minimums).
- Policy pressure from city and federal levels to deliver units over 900–1,000 sq. ft.
- Focus on families in upcoming housing policy, mayoral races, and federal housing programs.
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❓ FAQ: Families, Condos & Toronto’s Housing Market
Q: Are condos in Toronto really too small for families?
A: Many newer condos are, with three-bedrooms often under 900 sq. ft. But older buildings and certain neighbourhoods still offer large, family-friendly layouts.
Q: Where should families look for affordable homes in Toronto?
A: Under-the-radar neighbourhoods like Fairbank, Weston, Briar Hill, and Oakwood Village offer detached homes under $1M and larger condos.
Q: What’s the average condo size in Toronto now?
A: The average is between 600–700 sq. ft., compared to over 1,000 sq. ft. in the 1970s.
Q: Is it a buyer’s or seller’s market in Toronto right now?
A: Overall, Toronto is in a buyer’s market with five months of inventory. But parts of the East End and West End are closer to balanced conditions.
❓ Summary
Toronto is in a buyer’s market overall (5 months of inventory, SNLR 35%), but East End and West End neighbourhoods are closer to balanced conditions.
Condo sizes are shrinking: today’s average is 600–700 sq. ft. compared to 1,000+ sq. ft. in the 1970s, leaving families squeezed.
Families can still find larger condos and affordable houses in under-the-radar neighbourhoods like Fairbank, Weston, Briar Hill, and Oakwood Village.
Policy change is needed: developers should be required to build more 900+ sq. ft. family-sized units to keep families in Toronto.
