Deconversion
Deconversion is the process of turning condos back into rental units, shifting ownership housing into rental supply.
September 30, 2025
What is Deconversion?
Deconversion is the process of converting condominium units back into rental housing. It typically occurs when investors purchase a condo building and dissolve the condominium corporation to operate it as a rental property.
Why Deconversion Matters in Real Estate
Deconversion matters in real estate because it changes housing supply dynamics, often reducing ownership opportunities while increasing rental stock. It can be controversial among unit owners with differing interests.
Example of Deconversion in Action
An investment group buys out condo owners in a mid-rise building, dissolves the condo corporation, and reopens the building as a professionally managed rental complex.
Key Takeaways
- Converts condos back into rental housing.
- Typically involves investor buyouts of unit owners.
- Increases rental stock but reduces ownership options.
- Can create disputes among condo owners.
- Regulated by provincial condo and property laws.
Related Terms
- Condominium Corporation
- Purpose-Built Rental
- Rental Market
- Affordable Housing Program
- Ownership Rights
6525 Mississauga Road and its surrounding context. (RBC Capital Markets & CBRE)
Property details for 6525 Mississauga Road. (RBC Capital Markets & CBRE)
National average resale-price growth and housing-starts growth, smoothed over three months. The comparison illustrates the cycle; it does not establish how much a price change causes construction to change.
Trailing 12-month starts in centres of 50,000 or more remove the usual monthly seasonality. Ownership combines the homeowner and condominium categories; rental is shown separately.
Six-month averages of provincial starts, expressed at annual rates. The smoothing reduces the influence of individual apartment projects.
The same August benchmark compared with two different starting points. Three-month changes are not annualized.
Average sale prices show the difference in purchase costs across markets. They do not measure affordability relative to local incomes or construction costs.
Newfoundland and Labrador remains above its pre-pandemic sales pattern, but August activity was below last year. Historical lines retain their original release vintages.
Average and median describe different aspects of the same month’s transactions. Both are affected by the mix of homes sold.
Category averages compare different homes and locations; the gaps are not estimates of the cost to upgrade an otherwise identical property.
The five categories shown account for 5,000 of the board’s 5,057 sales. The remaining 57 transactions were in other housing categories.
Monthly observations are not seasonally adjusted. Active listings count properties available at month-end; they are not construction inventory.
Average and median prices share one dollar axis. These unadjusted transaction measures do not control for changes in the homes sold.
TRREB’s 416/905 categories compare the apartments sold in each area. The difference does not isolate a location premium for equivalent units.
5680 Oak Street in Vancouver and its surrounding context. (MCMP Architects)
Ground-level renderings of the tower proposed for 5680 Oak Street in Vancouver. (MCMP Architects)