Toronto's micro-condo market is crashing. These tiny units, often under 300 square feet, were popular for a decade. But now, prices have plunged from about C$500,000 to less than C$300,000. Thousands of units remain unsold or empty, marking the worst condo slump since the 1980s. 28-year-old Maggie Hildebrand described her micro-condo as "somewhere to put worker bees during the night." She has since moved to a larger apartment, paying just C$200 more. Experts blame oversupply and falling immigration. Canada’s population shrank sharply in 2025 due to new immigration caps. Over 60,000 new condo units arrived when demand had already dropped. Simultaneously, the Bank of Canada raised interest rates, pushing prices down and scaring investors. Investment condos, especially those under 600 square feet, are hit hard. These small units now make up 38% of Toronto’s condos, up from 7.7% before 2016. Shaun Hildebrand, president of Urbanation, said, "It's a race to the bottom getting these things sold." Some speculate that the 2022 freeze on foreign buyers also hurt demand, sending a message that Canada is "closed for business." Meanwhile, renters are winning. More options and lower prices improve their living standards. Ms Hildebrand now hosts parties in her bigger home, something impossible before. Developers may shift focus from short-term investors to long-term residents. Real estate agents say bargains attract new buyers. However, the condo crash risks tightening housing supply long-term, worsening Canada’s housing crisis. Future construction is slowing, and prices may rise again. Mr Hildebrand warned, "The question now is how long do we stay here, and what are the implications going to be for the housing supply in the next decade?"