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The Toronto Condo Ponzi Scheme
The Bank of Canada and Better Dwelling argue Toronto’s condo boom was driven by investor speculation and presale funding, creating Ponzi‑like dynamics where ongoing new-buyer inflows were needed to sustain prices and projects; when demand and returns fell, many projects stalled, inventory surged, and systemic risk materialized.
3 major bullet points:
Presale-dependent financing + high investor leverage (small deposits, assignment flipping) made the development model reliant on continuous new buyers rather than end-user demand.
Rising interest rates, easing population growth, and…
The skinny
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