The Missing Middle with Mike Moffatt and Sabrina Maddeaux Ron Butler: Condo Crash Meets Housing Crisis
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Jun 4, 2025 Ron Butler, a prominent mortgage broker and host of the Angry Mortgage Podcast, joins the discussion with Sabrina Maddeaux and Mike Moffatt to dissect the Toronto condo market crisis. He reveals how pre-construction purchases during a speculative boom are leading to significant losses for investors. They explore the ironic housing shortage amid a glut of poorly designed condos and the government's role in potential solutions. The conversation raises critical questions about low-rise housing scarcity and the urgent need for innovative, affordable options for families.
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Toronto Condo Crisis Root Cause
- The Toronto condo crisis stems from pre-construction purchases at inflated prices during 2019-2021.
- Buyers are now facing large losses because finished condos sell for much less than contracted prices.
Glut of Poorly Designed Micro Condos
- There is a paradox with a glut of micro condos despite a housing shortage.
- Developers built many tiny, poorly designed units intended as Airbnb hotel alternatives, now unviable as rentals.
Pre-construction Investors Crushed
- The biggest losers are pre-construction investors facing massive losses if forced to close.
- Closing refusals have increased to 20-30%, threatening formation of condo corporations.