Canada’s condo market is collapsing in real time, but the real story isn’t simply oversupply, rising interest rates, or investor pullback. The root of the crisis stems from decades of government-engineered price controls, with one institution at the center of it all: the Canada Mortgage and Housing Corporation (CMHC).
For years, CMHC has quietly shaped the housing market through two powerful price-control tools:
- Mortgage insurance
- Mortgage-backed securities (MBS)
Both of these programs shift risk from banks to taxpayers, inflate asset prices, and weaken market discipline. Most Canadians don’t understand how these systems work—yet the consequences affect every renter, homeowner, and future buyer.
Canada’s Real Housing Problem Isn’t Supply — It’s CMHC
Canada loves price controls—rent control, minimum wage mandates, supply management, tariffs, and artificially suppressed mortgage risk. CMHC is simply another extension of this economic philosophy.
But unlike regulators, CMHC isn’t just influencing the market—it’s engineering it.
Banks naturally prefer 20% down payments. That model forces buyers to assume responsibility for their borrowing risk.
But CMHC changed everything by guaranteeing mortgages with as little as 5% down. This instantly:
- Inflated demand
- Encouraged speculative buying
- Pushed prices far beyond income levels
- Shifted nearly all risk to taxpayers
CMHC’s MBS program then institutionalized the bubble by giving investors a government-backed pipeline of mortgage debt disguised as “safe assets.”
This is not a free market.
It is a centrally managed housing system, and Canadians are now paying the price.
The Condo Crash: What the Numbers Really Show
Urbanation Inc. reports that Toronto’s new condo sales have collapsed to 30-year lows:
- Sales down 77% from last year
- Only 170 new condo sales in Toronto in Q2 2025
- GTHA new condo sales 91% below the 10-year average
- 2,478 completed but unsold units (a record high)
- Developer-held unit prices down 16% from peak
Pre-construction is collapsing too:
- Only 3 projects launched in Q2
- 4 projects cancelled
- 20 projects cancelled since 2024
- Thousands of units now converted to rentals
- Construction starts down 84% from two years ago
Investors—the backbone of Toronto’s pre-construction market—have left the table. With no cash flow and no price growth, the math simply doesn’t work.
This is not a normal slowdown.
This is a structural unraveling.
Why the Crash Is NOT the Real Threat
While the media focuses obsessively on falling condo sales, the bigger danger is hidden:
currency debasement.
CMHC cannot allow a true market crash.
It exists to bail out bad mortgages, not allow price discovery.
Every bailout accelerates inflation.
Every MBS guarantee transfers losses to taxpayers.
Every intervention weakens the purchasing power of the Canadian dollar.
If CMHC continues in its current form, Canada’s future looks like this:
- A shrinking middle class
- Housing permanently out of reach
- Higher taxes
- More money printing
- Less purchasing power
- Domestic inflation that compounds quickly
Debasement is a property-rights violation. When government nationalizes the risk of housing, it effectively nationalizes the currency itself.
CMHC Must Be Dissolved, Sold, or Repurposed
CMHC no longer serves Canadians.
It serves:
- Developers
- Banks
- Insured mortgage investors
- Bureaucrats
- Politicians who depend on inflated home equity votes
It is time to face reality:
- CMHC distorts prices
- CMHC destroys affordability
- CMHC eliminates market discipline
- CMHC encourages speculative debt
- CMHC transfers risk onto taxpayers
- CMHC guarantees permanent inflation
This system is morally and economically unsustainable.
The Economic Fallout Has Already Begun
- Toronto unemployment is rising (8.7% vs. 6.9% nationally).
- Construction layoffs are accelerating.
- Developers are abandoning projects at levels not seen in decades.
- Completions after 2026 are predicted to collapse, creating a future supply crisis on top of the current one.
This “boom-bust-boom-bust” cycle is engineered—not accidental—and it stems from the same source every time:
policy, not the market.
Canadians Must Prepare for What Comes Next
The housing crash is not the end.
Currency debasement is.
Canadians must imagine realistic scenarios:
- What happens if basic goods triple in price?
- What happens if the Loonie collapses?
- What happens when more money chases fewer goods?
- What happens when trust in the currency breaks?
These are not theoretical questions.
They are predictable outcomes of Canada’s artificial, CMHC-driven housing economy.
A Final Word
No political party can fix a spiritual problem.
If you’re placing faith in government—any government—to save you, you are setting yourself up for disappointment.
Consider making Jesus Christ your Lord and Savior today.
Because relying on the state has never worked—not in economics, not in history, and not in salvation.