New condos are losing appeal… but good governance in co-ownership is gaining ground

In an article published in the newspaper La Presse on February 4, 2026, a reality that has concerned real estate market stakeholders for several months is recalled: new condos are struggling to attract buyers. An analysis carried out by an economist from the Canada Mortgage and Housing Corporation confirms what many developers, brokers and buyers are already observing in the field.

In certain sectors of Greater Montreal, the price of a new condo can exceed that of a comparable condo built between 2015 and 2019 by 15% to 30%. This gap is particularly noticeable in downtown Montreal, Longueuil and Brossard, where buyers’ financial capacity is directly confronted with the sustained increase in construction costs.

Economic pressure that is difficult to absorb

The La Presse article of February 4, 2026 highlights a central element of this issue: the increase in costs related to materials, labor and financing makes it increasingly difficult for developers to deliver units at competitive prices. This reality largely explains the marked slowdown in new co-ownership construction starts observed over the past few years.

While nearly four times more co-ownership projects were being built about a decade ago, current figures show a clear decline, both in the greater metropolitan area and in several surrounding municipalities.

A paradox: co-ownership remains popular

This slowdown in the new construction market should not, however, be interpreted as a loss of interest in co-ownership. On the contrary. As also noted in the La Presse article, condo sales have increased in Quebec, confirming that co-ownership remains a preferred path to homeownership, particularly for first-time buyers.

This vitality is mainly visible in the resale market. Existing co-ownership properties, often offered at more affordable prices than new units, better match households’ current financial capacities.

Downtown Montreal: a market apart

The article published on February 4, 2026 also highlights the particular situation of downtown Montreal. A significant proportion of co-ownership properties for sale in the province are located there, giving buyers stronger negotiating power. The absence of new projects in this sector clearly illustrates the wait-and-see climate currently characterizing the new condo market.

Bill 16: a factor often misunderstood

The La Presse article also recalls the structuring role of Bill 16 in this dynamic. The new requirements imposed on co-ownership properties, particularly regarding contingency funds, have a direct impact on the common expenses of new buildings.

At first glance, this increase may seem discouraging to some buyers. However, this interpretation deserves nuance. The contingency fund is a fundamental sound management tool intended to ensure financing for major repairs and replacement of common portions. Its objective is clear: to avoid unforeseen special assessments that have, in the past, placed many co-owners in a vulnerable position.

Good governance: an underestimated asset

This is where the slowdown of the new condo market must be viewed within a broader perspective. Syndicates of co-owners that have implemented rigorous governance — compliance with legal obligations, long-term planning, prudent and transparent financial management — stand out positively in this new context.

Far from being a burden, a well-administered co-ownership becomes a factor of security and value. In the medium term, buyers will become increasingly sensitive to the quality of governance, the strength of the contingency fund and the building’s compliance with legal requirements.

A temporary shift toward rental housing

While the new condo market is slowing, the La Presse article of February 4, 2026 recalls that rental housing construction is experiencing unprecedented growth in Quebec. This trend responds to urgent housing needs but does not call into question the fundamental role of co-ownership within Quebec’s real estate ecosystem.

In conclusion

The decline in the appeal of new condos, as documented in the La Presse article of February 4, 2026, above all marks a transition period. The rules have changed, and so have expectations. In this context, governance becomes a determining element.

Syndicates of co-owners that anticipated these changes and adopted exemplary practices are now better equipped to navigate this adjustment phase. For buyers, the message is clear: the purchase price alone is no longer sufficient to assess the quality of a co-ownership.