Pre-construction condos, which were once a favourite investment for real estate buyers, are quickly losing their appeal. Many new condo owners in the Greater Toronto Area are losing money this year, with some seeing losses of nearly $600 a month due to higher mortgage and developer costs. And the outlook isn't much better — rent prices across Canada dropped to a 15-month low in November, averaging $2,139. This is especially bad news for pre-construction condos, which are getting delayed or even cancelled more often. As a result, sales of these condos in Toronto have dropped sharply, with transactions falling by 73% from 2023 to 2024. This is a big deal because condos make up a huge portion of new home construction in major Canadian cities. While investors have faced criticism for snapping up so many condos and driving up home prices, there’s a flip side: if investor interest continues to shrink, fewer new homes might get built, making the housing shortage even worse.