Maggie Hildebrand’s first Toronto home packed a kitchen, workspace, and bed into just 300 square feet. While affordable and central, the 28-year-old soon felt trapped. “It’s just somewhere to put worker bees,” she said.
Her micro-condo was part of a building boom that saw these tiny units—once rare—surge across Canadian cities. Marketed as affordable entry points, they were often designed for investors to rent or flip.
Now, as Canada’s condo market hits a decades-low slump, micro-units are falling fastest in value.
With thousands of new units empty and projects being cancelled, a sharp debate has resurfaced: did developers build too many small, speculative investments rather than livable homes?
Investors own most sub-600-square-foot condos in Toronto, where these units now make up 38% of the condo stock, up from under 8%. The trend is less pronounced in the U.S., where micro-units remain niche.
The downturn suggests the micro-condo’s appeal wasn’t for living, but for betting—a wager that now appears to be losing.
By James Kisoo
