January 2025
Toronto, and Canada, look at housing differently than in past decades. There is greater interest in building residential housing that accommodates more people.
Single family housing is now considered an underutilization of land and is being rezoned for future construction of multiple units. Residents fighting against densification are viewed as taking advantage of bureaucracy to increase the delays and costs of new construction.
This is a reversal of Canada’s post-war housing model that has encouraged detached family housing. Protection in the form of zoning supported the residential nature of an area to ensure homes were a good long-term investment.
The federal government is no longer encouraging detached family housing and is instituting programs to promote densification. There is greater encouragement to develop high-rise communities with a heavier focus on renting.
The homeownership rate in Canada peaked at nearly 70 percent in 2011 and is on a decline that is expected to continue. It was 67.8 percent according to the 2016 Canadian census, with a corresponding drop in the proportion of single-detached houses to 53.6 percent. Demand for rental accommodation is expected to increase as more than 400,000 immigrants are expected to become permanent residents each year, of which more than 100,000 are expected to reside in or around Toronto.
From transit to wider sidewalks, parks and large high-rise communities, Toronto is preparing for this growing population by ensuring an increasing supply of ownership and rental accommodation.
