Toronto's Affordable Housing Plan Hits a Provincial Roadblock: What It Means for Buyers and Investors

Toronto has long been balancing rapid growth with a deepening housing affordability crisis. But a recent policy shift from Ontario’s government is stirring up debate—and creating both concern and opportunity for buyers, investors, and developers across the GTA.

What Changed—and Why It Matters

Earlier this year, the City of Toronto put forward a bold proposal: convert nearly 70 employment-zoned sites into residential land, with a clear condition—developers must include a portion of affordable housing units that would remain accessible for up to 99 years.

This plan was expected to deliver thousands of much-needed affordable homes.

However, just ahead of the provincial election, the Ontario government approved the land-use conversions—but removed the mandatory affordability requirement. Instead of enforcing affordable housing quotas, the province now merely encourages developers to include them. That single adjustment could result in the loss of up to 5,000 affordable homes that Toronto was counting on.

Why the Province Stepped In

The reversal appears to be driven, in part, by feedback from several major real estate investment trusts (REITs). These groups expressed concerns that the city's affordability mandates would make certain projects financially unworkable. Their argument: in some cases, it could be the difference between a development breaking ground—or not happening at all.

CT REIT, which owns land near Sheppard Ave. East, claimed the city’s proposal was “unauthorized” and could block any redevelopment. Choice REIT shared similar views, warning that the rules might "sterilize" future development. Another group, 401 Weston Centre Limited and Calloway REIT, noted the policy could delay projects that would otherwise bring over 36,000 homes to market.

While these developers aren’t against the idea of affordability, they’re urging that it be addressed later in the planning process—once more detailed feasibility assessments are complete.

What This Means for Buyers, Sellers, and Investors

If you’ve been following Toronto’s push for affordable housing, this development may feel like a step backward. But it also signals a growing tension between municipal planning goals and provincial decision-making power.

Buyers and investors should keep in mind:

• The city is prioritizing long-term affordability.

• The province is prioritizing speed and volume of construction.

• Developers are pushing for flexibility to maintain project viability.

As Paul Hess, a planning expert at the University of Toronto, put it: "Cities can propose, but the province disposes." In other words, Toronto may have ambitious plans, but Queen’s Park ultimately has the final say.

So, What’s Next?

The City of Toronto isn’t backing down. Officials remain committed to ensuring housing accessibility and are actively exploring new ways to collaborate with the development industry while preserving public interest.

Meanwhile, Premier Doug Ford has doubled down on his government’s pledge to deliver 1.5 million new homes by 2031, focusing on cutting red tape and accelerating the approval process.

Final Thoughts

This latest policy shift is a reminder that real estate in Toronto doesn’t exist in a vacuum—it's constantly shaped by political, economic, and industry forces.

Key Takeaways:

• The province approved land-use changes but removed Toronto’s mandatory affordable housing condition.

• Developers argue the original rules threatened project feasibility.

• The change could delay or reduce the creation of affordable units—but the dialogue isn’t over.

• Buyers and investors should keep a close eye on how this unfolds, especially as both the city and province push ahead with housing targets.

Need Help Navigating the Shifting Market?
Stay informed with our blog or contact our team for expert guidance tailored to your goals—whether you're buying, selling, or investing in Toronto’s dynamic real estate landscape.

🛠️ The Hidden Roadblock to Solving the GTA Housing Crisis

Why a labour shortage—not just interest rates—is quietly pushing home prices higher

Everyone knows housing in the Greater Toronto Area is expensive—but what if the biggest reason prices could continue rising isn’t what you think?

While interest rates, immigration trends, and supply chain issues get most of the attention, there’s another critical factor being overlooked: a shortage of general labourers in construction. And it’s having a bigger impact on your real estate plans than you might realize.

👷‍♂️ Not Enough Hands to Build Our Homes

Look around the GTA—from soaring condos in North York to family-friendly developments in Vaughan and Markham—and it’s clear that construction is in high demand.

But here’s the problem: there simply aren’t enough skilled and unskilled workers to keep up.

According to BuildForce Canada, the construction industry is facing one of its largest labour shortages in decades. In a region where population growth keeps accelerating, the gap between homes needed and homes being completed is only widening. And when there aren’t enough people on the ground to build, costs go up, and timelines stretch out.

📈 What This Means for Homebuyers & Investors

Whether you're planning your first home purchase or looking to grow your portfolio, here’s how this labour crunch hits home:

• Fewer homes = higher prices. Supply drops, demand stays strong—prices go up.

• Delays are the new normal. Pre-construction buyers face longer waits for occupancy.

• Renovation timelines stretch. Even homeowners trying to update their properties face longer project timelines and rising costs.

🇨🇦 A National Challenge, Felt Locally in the GTA

Canada’s immigration strategy has rightly focused on skilled professionals, but general labourers—those doing the hands-on, physical work—aren’t arriving in large enough numbers.

Without specific immigration pathways and recruitment for trades and labour, regions like Toronto, Mississauga, and Richmond Hill will continue to feel the squeeze. A GTA-based developer recently put it plainly:

“Without more boots on the ground, we simply won’t build fast enough to meet housing demand.”

💡 The Good News: Change Is Happening

The industry is paying attention.

• Construction firms are now partnering with trade schools and training programs.

• Municipalities are advocating for faster credential recognition for skilled newcomers.

• There’s growing momentum to expand immigration pathways for labourers, not just engineers and planners.

Toronto has always been a city of innovation and adaptability. With the right policies and community support, we can still build our way toward a more balanced, sustainable housing market.

🧭 What Should You Do Next?

If you’re thinking about buying, selling, or investing in GTA real estate, now’s the time to stay proactive:

✅ Act before prices increase further due to long-term supply constraints
✅ Understand development timelines and how they impact your goals
✅ Work with real estate professionals who follow market dynamics closely

🎯 Stay Informed. Stay Ahead.

The GTA market is constantly evolving, and understanding what’s driving change gives you the edge.

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Is Now the Right Time to Buy a Cottage in Ontario? Here’s What You Should Know

Whether you’re dreaming of a peaceful escape from city life or eyeing your next real estate investment, Ontario’s cottage market might be quieter right now—but that doesn’t mean it’s slowing down for good. In fact, things are getting interesting.

While the market has hit a temporary pause—partly due to economic uncertainty and new trade tariffs—the long-term outlook remains positive. According to the 2025 RE/MAX Cottage and Cabin Trends Report, prices across Canada’s recreational property market are expected to rise by 1.8%, even as some regions experience short-term price drops.

What’s Really Happening in the Cottage Market?

Yes, nearly half of Ontario’s recreational markets saw price declines over the past year—some as much as 20%. But that doesn’t mean values are falling. It’s more about a shift in supply and demand than a sign of weakness.

In places like Niagara-on-the-Lake, Orillia, and Grand Bend, we’re seeing more listings due to generational changes. Many families are choosing to sell their cottages as part of estate planning, or because younger generations aren’t interested in maintaining the property.

But while listings have gone up, so has quiet buyer interest.

As Samantha Villiard from RE/MAX Canada put it: “We’re really at a pause until there’s some clarity—whether that be a tariff pullback or a trade deal.” Once that clarity comes, momentum is expected to pick up quickly.

Why Some Buyers Are Waiting

Roughly 1 in 5 Canadians are holding off on making a move until the economic picture becomes clearer. That said, many still see recreational properties as a smart long-term investment—especially as urban affordability continues to be a challenge.

In fact, about 34% of buyers say they’re not just looking for a weekend getaway—they’re thinking long-term. More and more cottage communities, like Prince Edward County and Niagara-on-the-Lake, are becoming year-round home bases for remote workers, retirees, and young families alike.

Where We’re Seeing Opportunity

Even in areas near the U.S. border where cross-border travel has slowed, interest remains strong thanks to local draws like Ontario’s renowned wine country and expanding local amenities.

In northwestern Ontario, we’re also seeing a growing trend of people returning from other provinces, looking to reconnect with their roots and settle down closer to nature.

Plus, with more buyers considering a move outside the GTA, recreational properties are starting to double as primary homes—offering both lifestyle and long-term value.

What This Means for You

If you’ve been thinking about making a move, now might be the perfect time to start looking. Here’s why:

• Prices have stabilized, creating a potential entry point before things heat up again

• Inventory has increased in some regions due to generational turnover

• Demand is building and is expected to return with more certainty in the economy

• Some markets are shifting toward year-round livability, not just seasonal use

Don’t Wait for the Market to Bounce Back

If cottage life has been on your radar, this could be your moment to act. The current pause in activity is giving savvy buyers a rare chance, especially in areas that are usually competitive.

Let’s explore what’s possible for you.
📞 Thinking about buying or investing? I’d love to chat and help you navigate your options.
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What if the key to Canada’s housing crisis wasn’t some far-off idea—but something we’ve had all along, just waiting for the right push?

With newly appointed Prime Minister Mark Carney announcing a $26 billion plan to fast-track prefabricated housing, Ottawa is putting its chips on speed, innovation, and factory-built homes. But here’s the big question: is this the game-changer we’ve been waiting for—or just another flashy announcement that won’t move the needle?

Let’s break it down.

The Numbers Behind the Promise

The plan includes:

• $25 billion in low-cost debt financing

• $1 billion in equity support
  All directed toward Canadian prefab and modular homebuilders.

The pitch? Build homes in factories, cut construction time in half, reduce costs by 20%, and slash emissions by 22%. On paper, it sounds like a win.

But as always—what sounds great in Ottawa doesn’t always translate cleanly to the job site.

What Are Prefab Homes—and Why Now?

Prefab homes are built in sections at a factory, then delivered and assembled on-site. They're efficient, clean, and don’t depend as heavily on weather or on-site crews.

Kevin Lee from the Canadian Home Builders’ Association says it best:

“It allows us to build more homes with fewer people.”

And that’s huge, especially with our chronic skilled labour shortages.

But—there’s a catch. These factories don’t build themselves. Setting them up costs serious money, and if the housing market cools (as it tends to), those fixed costs stick around. So while prefab homes can speed things up, they’re not automatically cheaper or lower risk.

Can We Replicate Success Stories from Abroad?

Sweden and Japan have had success with prefab construction. But Canada’s landscape—literally and figuratively—is different.

• Japan has fewer people, tighter land, and a steeper population decline.

• Sweden’s climate made indoor construction a no-brainer.

• Canada? We’re huge, decentralized, and still heavily reliant on traditional methods.

Even in places more like us—like the U.S. or Australia—prefab still hasn’t gone mainstream.

So, Why Should You Care?

Because if prefab housing takes off—even partially—it could mean:

• Faster project completion

• Slightly more affordable homes

• More inventory in the pipeline

For buyers, that might mean shorter wait times and better access. For sellers, it’s a reminder that market dynamics can shift quickly. And for investors, it’s a space to watch closely.

But prefab homes won’t solve the housing crisis on their own.

Final Thoughts: A Step in the Right Direction?

Carney’s plan could make a real difference—but only if it’s part of a broader, smarter approach. That means:

• Cutting red tape at the municipal level

• Offering flexible repayment models to builders

• Supporting the construction workforce

As Kevin Lee puts it:

“No single fix will double Canada’s housing starts. But working on all fronts gives us a real shot.”

Stay Ahead of the Curve

Understanding where policy meets the market is critical if you’re buying, selling, or investing in the GTA. These shifts might not change everything overnight, but staying informed gives you a huge advantage.

Want to talk strategy or have questions about the market? I’m just a message away.

April didn’t just signal change in the Greater Toronto Area housing market—it delivered it, loud and clear. We’re seeing a market in transition: sales are cooling, inventory is rising, and prices are adjusting just enough to shift momentum in favour of buyers. Whether you’re looking to buy, sell, or invest, understanding the data behind these shifts is key to making the right move.

📉 Sales Continue to Slow

In April 2025, 5,601 homes were sold across the GTA, down from 7,302 sales in April 2024. That’s a significant 23.3% year-over-year drop.

Why the slowdown?

• Higher borrowing costs are making buyers cautious

• More inventory gives buyers breathing room

• Economic uncertainty is holding some buyers back

But this isn’t necessarily bad news—buyers now have time, leverage, and more choices.

🏡 Listings Surge – A More Balanced Market

New listings rose by 8.1% year-over-year, hitting 18,836. More notably, active listings jumped 54%, growing from 17,783 to 27,386.

This means less pressure on buyers and more room for negotiation—something we haven’t seen in years.

💰 Price Corrections Are Subtle, Not Alarming

The average home price in the GTA dipped to $1,107,463, a 4.1% decrease from the same time last year. This is not a crash—it's a soft market correction.

Premium areas are still holding strong:

• King: $1,821,545

• Aurora: $1,332,712

• Richmond Hill: $1,302,226

Meanwhile, more affordable options continue to attract attention:

• Georgina: $823,589

• Durham Region: $913,500

• Simcoe County: $934,913

📍 Where the Action Happened in April

Here’s a quick look at the top-performing regions by total sales:

• Toronto: 2,129 homes sold | Avg. price: $1,144,977

• Peel Region: 969 homes sold | Avg price: $998,207

• York Region: 894 homes sold | Avg. price: $1,256,615

• Durham Region: 769 homes sold | Avg price: $913,500

🔎 Insight: Toronto Central saw over 1,000 sales with a median price of just $800,000—a clear sign that buyer interest and affordability are intersecting in the downtown core.

⏳ Homes Are Taking Longer to Sell—And That’s Good for Buyers

• Average Days on Market (LDOM): 25 days (↑ 31.6%)

• Property Days on Market (PDOM): 33 days (↑ 22.2%)

This means sellers are no longer in full control. Buyers have more time to think, compare, and negotiate—something we haven’t seen consistently since before the pandemic.

🧭 The Market Mood – What You Should Know Right Now

For Buyers:
✔ Inventory is growing—so is your negotiating power
✔ Prices are more flexible than they were a year ago
✔ Take your time, but don’t wait too long. This window might not stay open for long

For Sellers:
✔ Pricing matters more than ever—don’t overreach
✔ Strong marketing can set your property apart
✔ Incentives (like flexible closings or improvements) can help secure serious buyers

🔮 What’s Next? Spring 2025 Outlook

Here are the big questions we’re watching:

• Will interest rates come down?
  A rate drop could spark a wave of buyer activity.

• Will more listings continue to hit the market?
  If so, we may continue to see downward pressure on pricing.

• Will buyer confidence return?
  It’s possible—but not guaranteed. Informed decision-making will be key.

🏁 Bottom Line: This Market Is All About Strategy

This isn’t the red-hot, fast-paced market of 2021—or even 2024. Spring 2025 is a more level playing field where both buyers and sellers can succeed, if they stay informed and act strategically.

📞 Want to move smart in this evolving market? Let’s have a conversation and build the right plan for your next move.

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