Rent control refers to government regulations that limit how much landlords can increase rent for residential tenants each year.
Why Rent Control Matters in Real Estate
In Canadian real estate, rent control policies vary by province and are intended to protect tenants from unaffordable increases while balancing landlord rights.
Key features of rent control include:
Annual rent increase limits set by provincial governments
Exemptions for newer buildings (e.g., post-2018 in Ontario)
Rules around notices and timelines for increases
Enforcement through landlord-tenant boards
Rent control affects rental market dynamics, investor returns, and tenant stability. It is a central issue in housing policy debates across the country.
Understanding rent control is crucial for both landlords and tenants to ensure compliance and avoid disputes.
Example of Rent Control in Action
A landlord in Ontario may only increase rent by the annual guideline set by the provincial government, typically 2–3%, unless exempt.
Receivership is a legal process where a court or secured creditor appoints a receiver to take control of a borrower’s assets, such as property or. more
A REALTOR is a licensed real estate professional who is a member of the Canadian Real Estate Association (CREA) and adheres to its Code of Ethics and. more
Property maintenance refers to the ongoing upkeep, repair, and management of a building or land to preserve its safety, functionality, and appearance.. more
Permit compliance refers to the requirement that all building or renovation work complies with approved municipal permits and relevant building codes.. more
After surging 30% month over month in April, the seasonally adjusted annual rate (SAAR) of housing starts remained more or less flat between April and May with a 0.2% drop, as homebuilding in markets in Ontario and BC continued to weaken.
In the longer term, the six-month trend in housing starts also remained relatively flat in May, posting a 0.8% increase and hovering at 243,407 units, while actual housing starts grew 9% year over year, from 21,814 units last May to 23,745 units.
The data comes from the Canada Mortgage and Housing Corporation's (CMHC) latest housing starts report, and shows that May was a more subdued month compared to April when not only the SAAR of housing starts surged, but actual housing starts were up 17% year over year — the "highest actual housing starts for the month of April on record," according to CMHC.
As pointed out in an analysis from Desjardins Economist Kari Norman last month, however, April's high activity was an outlier compared to the previous four months and spoke more to "natural fluctuations of multi-unit starts and their reporting dates, rather than an indication of a turnaround in the sector," she wrote.
As expected, housing starts returned to more moderate levels in May, with gains driven by continued high activity in Quebec and the Prairie provinces, particularly in Manitoba and Saskatchewan where total housing starts grew by 209% and 206%, respectively, compared to May 2024.
Canada Mortgage and Housing Corporation
“Growth in actual starts activity in May was once again driven by increases of single-detached homes and purpose-built rentals in Québec and the Prairie provinces," said Tania Bourassa-Ochoa, CMHC’s Deputy Chief Economist. "By contrast, weak condominium market conditions in Toronto and Vancouver have contributed to significant declines in overall housing starts in these regions, in line with our recent analysis on these markets."
Looking at Canada's largest cities, the national growth was fuelled by an 11% year-over-year increase in actual housing starts in Montreal and pulled down by a 10% month-over-month decrease in Vancouver starts and a 22% year-over-year decrease in Toronto starts, both driven by lower multi-unit starts.
The recent CMHC analysis referenced by Bourassa-Ochoa looks at the current state of Toronto and Vancouver's condominium markets, highlighting plummeting sales, sliding prices, and ballooning inventory — all factors that have led to increased project cancellations and reduced construction activity.
For an overview, all condo sales (including resale, new, and pre-construction units) fell 75% in Toronto and 37% in Vancouver between mid-2022 and the end of Q1-2025. Slow sales, paired with record high condo apartment completions in 2024, led to steady inventory growth, which culminated in the current 58 months of inventory in Toronto and prices dropping 13.4% in Toronto and 2.7% in Vancouver between Q1-2022 and 2025.
On the construction front, the result has been five- and 10-fold increases in the number of condo project cancellations compared to 2022 in Toronto and Vancouver, respectively, and a consistent downtrend in multi-unit starts in the two major cities.
Monday's national housing starts data comes soon after the release of the Financial Accountability Office of Ontario's quarterly economic monitor, which analyses a number of economic indicators, such as employment and inflation, and also home sales and housing starts for the first quarter of 2025. Findings from the report point to continued strain in the Provinces' economy, with housing starts being no exception.
According to the report, "high construction costs and weak sales as households continue to face housing affordability challenges" have pushed provincial housing starts down 20.2% to 12,700 compared to the 15,900 units started in 2024-Q4, marking the "lowest level of housing starts since 2009."
Although Canadian housing markets didn’t get the bustling start to spring that lower interest rates at one point seemed to promise, new national data shows that May brought a rally in activity. According to the Canadian Real Estate Association (CREA), sales edged up 3.6% between April and May, marking the first rise since November.
“May 2025 not only saw home sales move higher at the national level for the first time in more than six months, but prices at the national level also stopped falling,” said CREA Senior Economist Shaun Cathcart in a press release. To Cathcart’s point, the national composite home price index slipped just 0.2% month over month, “on the heels of three straight month-over-month declines of closer to 1%.”
“It’s only one month of data, and one car doesn’t make a parade, but there is a sense that maybe the expected turnaround in housing activity this year was just delayed for a few months by the initial tariff chaos and uncertainty,” Cathcart also said.
Without adjusting for seasonal effects, the composite index was down 3.5% over May 2024. While, without seasonal adjustment, the national average home price last month was $691,299, marking a 1.8% decline year over year.
On the supply front, CREA reports that there were 201,880 active listings on the MLS systems by the end of May, and that figure is up 13.2% year over year, but down 5% compared to the long-term average of around 211,500 listings for the month.
Meanwhile, the two metrics used to ascertain whether the market is in buyers’, sellers’, or balanced territory showed a slight shift in favour of sellers. For one, the sales-to-new-listings ratio was 47% in May, after coming in at 46.8% in April. By CREA’s definition, a ratio below 45% points to a buyers’ market, while a ratio above 65% suggests a sellers’ market. The long-term average for the metric is 54.9%.
The other indicator of market balance (or lack thereof) is months of inventory, and that metric clocked in at 4.9 months at the end of last month. CREA considers anything over 6.4 months to be a buyers’ market, and anything below 3.6 months to be sellers’ territory. The long-term average is five months of inventory.
Coming back to the national uptick in sales, CREA notes that it was led by activity in the Toronto Area, Calgary, and Ottawa. This is reflected in a recent report from RBC Economist Robert Hogue, which says that “the number of transactions partially rebounded from significant declines earlier this year” in those three markets, as well as in Edmonton, the Fraser Valley, Saskatoon, and Regina.
In his report, Hogue zeroes in on Calgary, where resales rebounded over 8% on a monthly basis in May, and Toronto, where resales rose 8.4%. However, also reflected in the report are the astronomical level of listings in some of these ‘rebounding markets,’ which is bound to temper any price growth and keep conditions buyer-friendly until the inventory can be absorbed.
Taking Toronto as an example, there were 21,819 new listings recorded in May — the highest level since March 2021 — and nearly 31,000 active listings — the highest level since at least August 2002.
This month, instead of diving into the usual data and policy rants, we’re shifting the focus to home buyers and renters themselves — exploring how demographics might offer new insights into the housing crisis.
In 2013, I stood on a real estate conference stage and made what felt like a long-range, maybe-even-foolhardy prediction: the Canadian housing market would crash in 2025.
A friend reminded me of this recently; it seemed, to him, like I had been right.
And in some ways, I suppose I was. Only, not for the reasons I had then thought.
At the time, I believed the housing market would buckle under the weight of Baby Boomers aging out. My thinking was simple: Boomers were the biggest, wealthiest generation in Canadian history. By 2025, the oldest among them would start dying off in significant numbers, unleashing a surge of supply into the market — which would finally pop the balloon.
That part? Dead wrong.
There’s been no great flood of listings (at least at the top end), no market crash, no sudden unlocking of supply of baby boomer homes. What we’re seeing instead is something slower, more structural, and ultimately harder to unwind. The collapse is happening at the wrong end: in the entry-level urban condo segment, where new inflow housing is needed.
My updated hypothesis is this: the housing market isn’t about to burst. It’s jammed.
Two Housing Systems, One Market
Let’s stop pretending there’s one housing crisis. There are two — one visible, one structural — and they’ve split the Canadian market in half.
Group A: The Housed and The Waiting
This group includes the Baby Boomers and many of their adult children. Boomers still control nearly half of Canada’s real estate wealth. Much of that wealth sits in mortgage-free, detached homes — often with two bedrooms too many and one resident too few.
Their kids, meanwhile, are often highly educated, steadily employed, and many still… living at home. In 2021, 35.1% of Canadians aged 20–34 lived with their parents, according to Statistics Canada. In Toronto and Vancouver, it’s closer to 50%. That stat spans the children of late Boomers and early Gen Xers — and includes people who are waiting not for an opportunity, but for an inheritance.
In other words, these Canadians aren’t locked out of housing — they’re just stuck in the hallway, waiting for the keys.
Group B: The Locked-Out
This group isn’t waiting for a family transfer. They’re just waiting for a chance.
They have no real estate legacy, no mortgage-free home to inherit, and increasingly no access to stable rental housing. These are the people priced out of homeownership and out of the supply-constrained affordable rental market. For them, there’s no fallback. No family basement. No wealth on the horizon.
This is where the real crisis lives. Because even the affordable housing that should serve this group — mid-tier rentals, starter homes, purpose-built housing — is half-filled with kids from Group A who are paying premiums to secure a home-base as they wait for their inheritance, and in the meantime, nothing new is getting built.
The Boomer Bottleneck
It’s tempting to blame the usual suspects: foreign buyers, rate hikes, developers, flippers. But today’s jammed-up market has a less obvious culprit: time itself.
They’re aging in place, staying in homes that would traditionally cycle back into the market when their kids moved out or when it came time for care. The majority of seniors live in single family homes. Although that number decreases with age, still at 85 and over, roughly the same number of seniors are living in a single family home as have moved to collective dwellings. In short, the family home has become a fortress of individual aging, not intergenerational mobility.
This isn’t about hoarding. It’s about design.
The infrastructure — and the will — simply isn’t there to support senior transitions:
Downsizing is fraught with costs, or is disincentivized
Long-term care is expensive and hard to access
Age-appropriate housing is in short supply
Capital gains exemptions make it financially illogical to sell, even if you want to
A boomer’s nostalgia and connection to home is far stronger than any external motivator
Meanwhile, Boomer wealth — once quietly funding rental property investments directly or through children — has gone into hibernation too. Policy shifts have villainized investors and disincentivized the very capital that used to build and finance rental supply. Now, that money sits in paid-off homes, underused and under-leveraged.
Turnover Is Coming — But Are We Ready?
The oldest Boomers turn 79 this year — and over the next five to ten years, many will surpass the Canadian life expectancy (79.3 years for men, 83.5 years for women).
So yes, the turnover I predicted is still coming. Just slower, and with a very different set of complications.
A 2023 report by the CPA (Canadian Professional Accountants) estimated over $1 trillion — made up largely by housing wealth — will transfer to younger generations by 2026. But that has not proven to be the silver bullet people thought it would be. Evidently, it could take even longer, as most of that transfer will happen slowly — via probate, trusts, delayed sales, or rental conversions — and will benefit only those already positioned to receive it.
In many cases, inherited homes aren’t even being lived in. They’re turned into short-term rentals, vacant investments, or they’re simply held onto. This does nothing for Group B — the people who were never going to inherit a thing, but need a place to live now.
Policy Paralysis and the Immigration Freeze
When affordability anger peaked in 2023 and 2024, the government responded by doing what looked like something: capping immigration through 2026, and cutting back on international students and temporary foreign workers.
The logic? Fewer people, less demand, lower prices.
The problem? That logic only works if you think the issue is too much demand. But the real issue might be zero turnover.
But if it’s an outflow issue, newcomers don’t compete for Boomer homes or their children’s inheritance. They rent. They fill purpose-built housing. They justify new starts and keep the rental economy viable by continuing to cycle new inventory into the system, which creates affordability around old inventory and smaller units. When you shrink immigration and discourage investors at the same time, you kill demand and stall construction at the inflow side of housing supply — and further entrap Group B, who can’t compete, on price, with Group A for the limited supply available.
So what’s left?
Boomers aren’t selling
Developers aren’t building
Immigrants aren’t arriving
Young adults aren’t buying
That’s not a housing bubble. That’s a housing coma.
What We Should Be Doing Instead
We don’t need to cool the market. We need to circulate it.
For Boomers:
Incentivize downsizing, don’t penalize it.
Reward the sale of legacy homes to developers creating density or reward the transfer — now — to adult children who will occupy it.
Expand age-appropriate housing, senior-focused co-housing, and community care transitions that seniors want.
Stop designing tax policy that traps wealth in underused homes, and certainly don’t try to unlock it with further tax disincentives that lead to deeper protectionism.
For Builders and Group B:
Reframe housing investors — especially those using Boomer capital — as partners, not predators.
Incentivize the mobilization of under utilized homes instead of trying to penalize it.
Re-link immigration targets with regional housing starts.
Stop forcing expensive age-in-place and accessibility building standards that make entry level projects unbuildable and further promote bottlenecks in supply turnover.
Plan for each part of the continuum, not for the plan that gets you the most votes.
Once you get the projects built, back Group B with downpayment and mortgage support that Group A gets from their boomer parents.
Final Thought: The Boomers Still Hold the Key — Until They Don’t
Boomers aren’t the villains here — they’re simply the gravitational centre of a system that was never updated. But as a cohort, they still control the flow of housing: through the homes they live in, the wealth they hold, and the policies shaped in their image.
That control won’t last forever. A massive transition is coming; in fact, maybe it has already begun. But it isn't happening fast enough.
The question is whether we can use this transition to unclog the system now — or allow a generational wealth transfer to deepen the divide between the housed and the hopeless.
The time to act isn’t after the turnover. It’s today, while we still have a chance to manage it.
This article is authored by Ben Smith, President of AVESDO: a Canadian software company harnessing the power of data to help real estate professionals make better, faster, and more informed sales decisions.
Welcome to Meet the Agent, an ongoing series profiling real estate agents from across Canada. With more than 150,000 agents, brokers, and salespeople working in 75 different boards and associations across the country, we thought it was about time they had a place to properly introduce themselves.
If you or someone you know deserves the same chance, email agents@storeys.com to apply.
THE DETAILS
Name: Justin Bregman
Areas of Focus: Toronto, York, Durham, Simcoe, Halton, and Peel
I always wanted to be a real estate agent. I went to university and while I was there, I was studying to get my real estate licence. I got my real estate licence when I was 21. I was working in sport broadcasting and helping many professional athletes and colleagues in the sport broadcasting world get rental properties before becoming a full-time realtor when I was 25.
In a few sentences, describe what a typical “day in the life” looks like for you.
A day in the life of Justin Bregman as a realtor is what I call organized chaos. I never expected the job to be like this, but I wouldn't trade it for anything else. I love what I do every day, and I love that every day is so different. A typical day is me getting up early and maybe going for a workout, going into the office to prospect, going out on showings with clients, prepping new listings to come to the markets, or working on offers sometimes way past midnight before resetting for the next day.
What’s the single best advice you have for sellers?
My best advice for sellers is do not overprice your home. There are many different pricing strategies to get your home sold for the highest amount of money, but pricing it too high is not the best way. Make sure to have a realtor working with you that knows the ins and outs of the market and is really in tune with world events, interest rate changes, and new comparable sales in the area. And make sure to price the property in line with market trends to get the absolute most amount of money for your home.
What’s the single best advice you have for buyers?
My best advice for buyers is to work with an agent that is extremely knowledgeable about the neighbourhood, the market, and negotiating on your behalf. There are so many things that go into buying a property and determining value, whether it's the neighbourhood, school district, the size of the lot, the size of the home, etc. Make sure that you're working with a realtor that can guide you through every part of the process and make sure that you can get the best deal and the best offer in comparison to the market value.
What made you choose to work for your current brokerage?
I currently work at RARE Real Estate and what made me choose RARE was the opportunities and platform that allows me to grow as a leader in the industry. This brokerage has an incredible staff and incredible support system, and it allows me as an agent to not only excel in my business, but allows everybody that works under me on my team to excel in theirs as well.
Is there anyone you recommend people should be paying attention to right now?
The people that are making the biggest waves in the industry are people that are honest, extremely hard-working, and delivering product knowledge and competitive advantages over any other realtors. A big part of this nowadays is social media as well as many other marketing initiatives to get your property seen and get it sold for top dollar.
What is one professional goal you have for the next year? What’s one that you have for the next 10 years?
My goal for this year is to continue to grow not only my success, but the success of my team. Over the course of the next 10 years my goal is to be the top listing agent in all of Toronto while managing a team and watching all of my hard work take effect with respect to the agents that work under me. I want to watch them grow and benefit and have a complete and successful partnership between myself and my team here in Toronto.
Tell us about your favourite (or most memorable) sale, and why it stands out to you.
103 Burncrest Drive is an amazing success story. I was listing on this property for just under two weeks and I had set the expectation with my clients that this property is not worth any more than $2.15 million. After the extensive marketing campaign, I was proud to present an offer to my clients for just over $2.2 million. It was a record-breaking price for the location and yet the clients refused to take this price as they wanted $2.3M. They took the listing off the market and relisted three months later with another agent, trying to get $2.3 million. I then represented the buyer and bought this home for $2.1 million! So my former clients took $2.1 million instead of the $2.2 million, still paying me a commission as the buyer’s agent. This is a great success for my buyer clients and a great lesson into understanding why it's so important to be working with a realtor that understands the value of a home. I had brought them an incredible record-breaking price for the home that they never took.
What are the three words you hope your clients use to describe you?
Three words that I hope my clients use to describe me are honest, loyal and dedicated. I am an extremely hard-working individual that goes above and beyond and will do whatever it takes to reach my clients’ goals.
The prefabricated and modular housing industry is growing by leaps and bounds around the world. Canada is no exception.
The nation’s modular construction market is expected to reach a valuation of $16.5 billion by 2029, up 8.1% from 2024. The prefabricated home manufacturing industry has grown at an average annual rate of 5.2% over the past five years to reach $3.8 billion in 2024.
There are many reasons for the sudden surge. Canada needs housing and lots of it, innovations are improving the efficiency and aesthetic appeal of prefabricated homes, rising costs are driving changes, and governments are actively supporting the industry.
The concept of prefab or offsite construction is as old as wrinkles. The ancient Romans, for example, used prefabricated concrete moulds for their aqueducts and tunnels and William the Conqueror brought prefabricated sections of defences with him when he invaded England in 1066.
But enough of the history. Back to the present day.
I recently had the opportunity to tour German factories where prefabricated housing is built offsite. We could learn a thing or two from the Germans, who have been doing this for a century. They are increasingly turning to modular and prefabricated construction. More than one in four single-family and two-family homes are now built using offsite methods.
Here in Canada, we have seen some promising signs. Ontario is committing $50 million over five years to grow its industrial capacity in modular construction and other innovative options to accelerate development, improve affordability, and nurture home‐grown industries. Invest Ontario will help fund the expansion and upgrade of existing production-line machinery and adopt new technologies that increase productivity and output.
On a much larger scale, on the federal front the governing Liberals have pledged to provide $25 billion in debt financing and $1 billion in equity financing to innovative Canadian prefabricated home builders.
Even the City of Toronto is getting in on the act. In March, the planning and housing committee requested that council direct the chief building official to enable factory-built modular homes to be included in the building division’s certified plans, making it easier for builders to re-use an approved housing design without having to go through a full permit review process.
Meanwhile, real estate developer and Mattamy Homes founder Peter Gilgan is planning to start a prefab housing factory in the Toronto area. The first phase is slated to open in 2026 and will focus on making modular parts and components for six-storey condo buildings with one- to three-bedroom units.
We’ve already had success with panelized housing for a while now. Great Gulf Group of Companies, for example, was an early adopter of prefabrication through its H+ME Technology business. The venture, created in 2007, produces wall and floor panel systems for residential builders, and builds prefabricated housing.
Prefabricated housing is not the cure to everything that ails the housing market in Canada, but it is one way to build more quickly. Experts say it can reduce construction times by up to 50%, costs by up to 20%, and emissions by up to 22% compared to traditional methods.
While the moves are admirable, the key to making it work is to include builders in consultations on how to move forward. It is not simply a, “Build it and they will come” situation.
The bankruptcy of Katerra in 2021, a company that sought to manufacture housing components offsite, is an example of what can happen when things go wrong.
My fear is that governments will invest heavily in offsite without understanding the complexities. They must consult with those who actually build the housing — and that is the builders themselves — to prevent wasting money on initiatives that have little chance of success.
In my opinion, the true potential of prefabricated building lies in speeding up the construction of larger structures such as student, senior, and affordable housing options that use repetitive designs.
Prefabricated construction has been successful in countries like Japan, Sweden, Germany, and Britain. Nearly half of multi-storey residential buildings in those other countries incorporate prefabricated components and complement the capacity of the traditional site-built sectors.
The drawback, though, is that it only works in certain circumstances and not so much in the low-rise sector. An additional hurdle to mass production of factory-built homes is that regulations vary across provinces and municipalities. This makes it difficult to standardize home designs for different cities. We therefore need to overcome this hurdle for housing built offsite.
To build the new homes that are needed in Canada, we must embrace new ways of building. Offsite construction can play a major role — but it is complicated and to do it properly requires an expert approach from design to closing.
Tucked away on 10.9 gated acres just north of Victoria’s core, 1708 Woodsend Drive is the kind of estate that feels pulled from another era — one where timeless design, artisanal finishes, and unshakeable privacy converge in singular fashion.
But make no mistake: while this estate speaks with the quiet confidence of old-world elegance, its bones and systems are anything but dated.
Fully rebuilt in 2024 by White Wolf Homes, this seven-bedroom, eight-bathroom manor fuses traditional craftsmanship with contemporary precision.
From the outset, the home makes a striking impression. A winding drive gives way to 12-foot mahogany entry doors that open onto a grand foyer framed by 20-foot ceilings and marble-inlaid stone floors.
What follows is a graceful progression through richly layered spaces, where every turn reveals something new: exotic hardwoods underfoot, carved stone fireplaces, a bespoke music room, a vibrant sunroom, and a fully equipped home theatre.
The main floor kitchen is tailored for serious entertainers and culinary pros alike, featuring a full Wolf and Miele appliance suite, an oversized island, and a dedicated butler’s kitchen with a built-in coffee station. And while the central gathering spaces speak to hosting at scale, the private quarters offer a full retreat from the day-to-day. In the primary suite, two magazine-worthy walk-in closets sit opposite a Ritz-style ensuite — and a sunroom designed for quiet mornings or breezy nights.
Connected via an elegant glass breezeway is a two-bedroom guest suite, ideal for extended family, visitors, or live-in support. The detailing here matches that of the main residence — a testament to the integrity of (and consideration given to) the rebuild.
Outside, the property unfolds like a private resort. A full-size professional tennis court and large outdoor pool anchor the recreational side of the grounds, while a restored pool house and sculpted terraces create space for entertaining, lounging, or sunset cocktails. A custom fire pit area rounds out the outdoor offerings, drawing the eye to the estate’s generous south-facing exposure and carefully preserved natural backdrop.
The seamless blend of old-world luxury and new-world upgrades is what's stolen our heart at this address. From the marble-inlaid floors to the breezeway-linked guest quarters, every square foot of this estate has been thought through and executed to perfection. It’s an extremely rare combination — and one that feels destined to stand the test of time.
Though just 15 minutes from downtown Victoria, the address feels distinctly set apart — protected, peaceful, and purpose-built for generational enjoyment. It’s a rare legacy property that pairs classic stature with new-world polish, inviting its next owners to write the next chapter with style and certainty.
Build upwards not outwards has become the mandate of urban centres around the world, Toronto included. Population growth, increased housing demand, skyrocketing land values, and the perils of urban sprawl have necessitated increased density, and meanwhile, we've seen the emergence of innovative engineering as buildings stretched higher and higher into the clouds.
This combination of necessity and technology have led developers and architects to turn to more extreme heights in the form of aptly-named 'supertalls,' which, according to the Council on Tall Buildings and Urban Habitat (CTBUH), are buildings with heights of 300 metres (984 feet) or more.
Supertalls have been around since the 1930s, with the 1,049-ft (319-metre) Chrysler Building being the first to hit the impressive height milestone, but began popping up around the world in greater numbers throughout the late-2000s. And while Toronto may be one of Canada's largest urban centres, Global Director of the Architecture & Urbanism Division at Arcadis, Mansoor Kazerouni, tells STOREYS the Ontario capital is behind other major cities when it comes to supertalls.
"In many ways, Toronto is actually playing catch up to the rest of the world," says Kazerouni. "If you think about it, our tallest planned tower right now is around 350 meters, right? Well, that wouldn't even put us among the 80 tallest buildings in the world."
The tower Kazerouni is referencing is the SkyTower at Pinnacle One Yonge, one of eight supertall buildings currently under construction or approved in the city, which will reach 105 storeys at its highest point. Arcadis is the architecture firm tasked with designing the second tallest project in the supertall pipeline which is the 99-storey, 1,040-ft 19 Bloor tower.
To better understand the role supertalls have to play in Toronto, alongside their benefits and unique construction challenges, we spoke with Kazerouni and Shane Fenton Partner and COO of one of 19 Bloor's developers, Reserve Properties.
Location Is Key
Kazerouni and Fenton agree that the main role of a supertall is to provide the maximum amount of housing possible on a single plot of land. But location is paramount. This means developing close to higher-order transit in walkable communities where existing built forms would exist in harmony with a supertall. For Fenton, 19 Bloor Street West ticked all these boxes.
“We see [the 19 Bloor] site as centre ice in the City of Toronto," says Fenton. "It doesn't get better in terms of location and planning, and in terms of something that could be built at a high rise scale.” Surrounding the site, he highlights, are dozens of other tall buildings, access to Line 1 of the TTC, educational institutions like the University of Toronto and Toronto Metropolitan University, and a plethora of dining, retail, and entertainment options.
Shane Fenton, Partner and COO at Reserve Properties
Building up density around higher-order transit and urban amenities has become a major mandate of the City in combatting the housing crisis, and supertalls have come as a welcomed tool in areas where their development is appropriate. As such, Fenton says the City was "very supportive" of the 19 Bloor project. "They expected us to be coming forward with that type of overall concept of design for the site," he says.
Design Challenges
Conceptually, supertalls are simple; they provide high density housing on a small plot of land by building higher. But in practice, they present a host of material challenges that architects like Kazerouni are tasked with overcoming.
Over 980 feet up in the air, wind becomes a major issue as residents in upper floors can experience an uncomfortable swaying motion. To combat this, architects like Kazerouni can do a number of things to lessen wind resistance, such as placing a very heavy mass at the top of the building, sculpting the exterior to reduce wind resistance, or even incorporating giant holes half way up the building to let wind through.
Height also becomes an issue within the building where mechanical systems, plumbing, and ventilation will fail if pushed to extremes. To remedy this, architects will essentially divide the buildings interior systems in two.
"We often start to introduce mid-level mechanical systems, almost independent for the lower half and the upper half of the tower, so that it starts to become two towers stacked over each other," explains Kazerouni. "For the elevator service, we oftentimes do dedicated stacks — low-rise, mid-rise, high-rise — so that you can bypass the lower floors to get to the upper floors."
Creating Diverse Communities And Sustainability
Innovative solutions like what Kazerouni is describing allow for a highly livable building that provides unique opportunities for residents. In other cities like New York, many supertalls serve as luxury buildings, offering only around 100 units despite their height. But in Toronto, Kazerouni points out, "we've tended towards smaller units for reasons of affordability."
The ability to provide a range of unit types, from smaller, more varied units closer to the ground to larger upper-floor and penthouse units can allow for diversity to flourish within the building.
"I think it gives us an opportunity to segment the tower so you can actually get diversity in terms of economic diversity, demographic diversity, and diversity in the size of units," says Kazerouni. He also floats the idea of having amenity spaces at higher levels so all residents can enjoy panoramic views afforded by living in a supertall. "It allows you to experience the city in different ways, not just the floor you live at."
Mansoor Kazerouni, Global Director of the Architecture & Urbanism Division at Arcadis
On top of fostering diverse communities, Kazerouni points out that supertalls can be a sustainable development opportunity. By maximizing housing density near transit, you reduce what could have been a much larger carbon footprint.
"You are reducing the need for urban sprawl, the need for additional roads, additional highways, and expensive infrastructure that inevitably leads to long commutes and chokes our highways," says Kazerouni.
The Future Of Supertalls
Toronto may be playing catch up in the supertall arena, but Kazerouni and Fenton say the stage has been set for Toronto to lean in on developing these high-density buildings in some of the city's most built up, transit-oriented nodes.
"[Building higher] is the inevitability of world-class cities that continue to be in demand and grow," says Kazerouni. "And if we don't want to spread and create endless urban sprawl, the only other way to go is up, right? So I think you will see more supertalls in Toronto."
On top of that, Fenton points out the long-term implications of failing to deliver high-density, height-intensive buildings where possible throughout the city.
“You really get one shot. Because once you build the building, that thing is going to be there for the next 100 years," he says. "So if you start building on sites that can accommodate a greater density and under-utilize what you can put there, you've done a disservice to the city.”
Construction at the Signal project by Oxford Properties and Intracorp in Vancouver. / Axiom Builders
As the real estate market continues its downward turn, local governments across Metro Vancouver (and beyond) have shown a strong willingness to tweak their policies in an effort to provide some relief to homebuilders and to get shovels in the ground. The latest municipality to do so is the City of Vancouver.
"Development viability is under increasing strain due to a wide range of factors, such as construction cost escalation, impending tariff implications, an elevated interest rate environment, and recent changes to immigration policy, all of which have created greater uncertainty and dampened consumer and investor confidence," said the City in a report that will be considered by Council next week. "At the same time, the cost basis for construction – including land, labour, regulatory requirements, and government charges – has dramatically outpaced inflation since 2019, while home prices have approached affordability ceilings."
"The investor pool is shrinking, driven by the end of foreign investment, stagnating rent yields, and diminished expectations of future appreciation," added GM of Planning Josh White, who authored the report and hinted at the changes in an interview with STOREYS last month. "This shift has left both purpose-built rental and strata development financially challenging, particularly at the scale, price points, and speed required to meet the city’s housing needs. Without intervention, supply will continue to lag behind demand, exacerbating affordability pressures and excluding key market segments – especially families and middle-income earners – from viable housing options."
In response to the aforementioned challenges, the City is proposing a series of changes to support the financial viability of development projects. Most of the changes relate to when and how the City collects development fees. How much the City collects is not changing, as no changes to rates have been proposed.
Development Cost Levies (DCLs)
The first change is pertaining to development cost levies (DCLs), which are known as development cost charges (DCCs) in other municipalities.
Under existing policy — dictated by the Province's Local Government Act — developers are required to make their DCL payments upon issuance of the building permit (BP) for their project, which is one of the last steps before construction. Many developers — such as those involved in the letter-writing campaign in September 2024 — have said that paying it all upfront is a burden because they are often financing the payment with debt for the duration of construction, as Wesgroup's Brad Jones previously told STOREYS.
Thus, the City has proposed a policy change to allow DCLs to be paid in three equal installments: a third upon building permit issuance, a third 12 months after BP issuance, and the remaining third 24 months after BP issuance. This change would apply to all projects with DCLs — inclusive of City-wide DCLs, area-specific DCLs, and Utilities DCLs — totalling $500,000 or more. The DCL rate will be locked in upon BP issuance, will not be subject to rate increases that occur afterwards, and will not accrue interest. As assurance for the City, the developer will be required to provide a "pay-on-demand" Surety Bond or Letter of Credit and default on any of the installments will result in the full remaining balance becoming due.
"While deferral of DCLs could pose a sizeable one-time impact on funding for infrastructure and amenities to support growth in the next capital plan (2027-2030), collections are expected to stabilize thereafter," the report states. "To mitigate such impact, staff recommend using interim financing, repayable over 10 years, to bridge the funding gap."
Community Amenity Contributions (CACs)
The second big change is pertaining to community amenity contributions (CACs), which the City levies on projects that require rezoning.
"Currently, the City's CAC policy for rezonings provides discretion to allow for deferral for the portion of cash CACs exceeding $20 million, with interest at Prime + 3% applicable to the deferred payment and payment due by the earlier of 24 months of rezoning enactment or prior to issuance of the first building permit," according to the report. "Up to 50% of the deferred CAC may be secured by 'pay-on-demand' Surety Bond and the remainder by Letter of Credit."
"Under the proposed amendments, the City may, at its discretion, allow for deferral for the portion of cash CACs exceeding $5 million, with interest at Prime + 1% applicable to the deferred payment and payment due by the earlier of 24 months of rezoning enactment or prior to issuance of the first building permit. The first $10 million of the deferred CAC may be secured, at the City’s discretion, by 'pay-on-demand' Surety Bond and the balance over $10 million may be secured by a combination of 'pay-on-demand' Surety Bond (up to 50%) and Letter of Credit."
The effect of this change is similar to that of the DCLs change, which is to reduce the upfront financial burden, and the City says this CAC change would apply to new, in-stream, as well as approved rezonings that have not been enacted yet. (In the City of Vancouver, rezoning approvals like what was granted this week for the Commercial-Broadway Safeway redevelopment are only in principle and the applicant must then meet various conditions for the rezoning to be officially enacted.)
A list of rezonings that have been approved but not enacted, which are eligible for the CAC deferral. / City of Vancouver
Annual Inflationary Adjustments To Development Fees
Like other municipalities, the City of Vancouver conducts regular reviews of its rate schedules for DCLs, CACs, and density bonus contributions (DBZs), oftentimes adjusting — increasing — rates to account for inflation.
In recent years, Council has already approved deferring this rate adjustment in both 2023 and 2024, and is proposing that the adjustment for 2025 — an increase of 3.2% — again be deferred.
The deferral means that when the rates are next adjusted, they will jump substantially to reflect the inflation that has occurred over several years, not just one year.
"Forgoing the 2025 inflationary adjustment to DCLs, CAC Targets and DBZs will reduce development contributions in the following year by ~$4 million based on recent historical collections," the report states. "Foregoing the implementation of the deferred 2024 inflationary adjustment to CAC Targets and DBZs will reduce development contributions by an additional ~$2 million in the following year."
"Pay-on-Demand" Surety Bonds
Another change is as it relates to the aforementioned "pay-on-demand" Surety Bonds.
"The City has traditionally relied on Letters of Credit to secure infrastructure and amenity obligations as part of development," according to the report. "In recent years, the City has started to accept 'pay-on-demand' Surety Bonds on a limited basis to secure delivery of turnkey amenities above $20 million and cash CAC payment deferral. Surety Bonds are a financial instrument where the surety guarantees the obligation of the developer to the City. 'Pay-on-demand' Surety Bonds are intended to function like Letters of Credit in that the City is intended to have the right to demand payment or fulfillment of an obligation of the developer from the surety, by providing a notice of default and the surety contracts that it will fulfill the obligation. However, there are key differences between Letters of Credit and 'pay-on-demand' Surety Bonds, which creates the potential for greater collection risk."
The risk is increased because, while letters of credit are issued by chartered banks and those banks generally require that the developer has the funds in their account, surety bonds are instead issued by insurance companies that are not holding the funds. In the event of a default and the City demands payment, the insurance company is nonetheless required to fulfill the obligations of the developer, but the collection procedure is different and usually entails more time compared to letters of credit.
Nonetheless, the City has proposed that the eligibility threshold for the use of such Surety Bonds be reduced from $20 million to $5 million, as well as that Surety Bonds also be allowed on infrastructure and amenity obligations with an aggregate value per project of over $5 million (with a minimum of $3 million pertaining to infrastructure).
Floorplates
The final significant change is pertaining to floorplates, which is the size of a single floor, measured in square footage.
Currently, the City has a floorplate "guideline" of 6,500 sq. ft, but believes this has "become outdated due to evolving building codes, energy requirements, and rising construction costs."
"To better support project viability, a shift towards a more flexible, principles-based framework is necessary. Smaller sites will still require tighter limits to achieve urban design goals like tower separation and sunlight access, while larger or less constrained sites – especially those for mass timber or social housing – may accommodate up to 8,000 sq. ft. floorplates. Additionally, taller buildings and larger sites offer opportunities for additional flexibility rooted in sound urban design principles. However, this flexibility requires stricter tower separation standards to maintain livability. Floorplate sizes should be flexible, allowing professional discretion to achieve high-quality, context-sensitive urban design."
The City has published a bulletin outlining the changes that indicates the floorplate guideline of 8,000 sq. ft will apply not just to mass timber towers and social housing projects, but also towers that exceed 40 storeys. The floorplate guideline for all other towers ranges from 4,000 sq. ft to 7,200 sq. ft, depending on whether the site is one that can accommodate a tower, whether it is a corner or mid-block site, and the site frontage.
This particular change is under the authority of the Director of Planning (Josh White), does not require Council approval, and already came into effect on June 3.
All of the above changes, except for the floorplate change, are up for Council approval on Tuesday, June 17, and the report states that the City will continue to look for changes.
"Staff are continually reviewing policies and process improvements to ensure they are appropriately applied and streamlined to support development viability. This ongoing work aims to enhance clarity and efficiency while balancing the need for timely project delivery with the City’s commitment to building complete communities and delivering essential amenities for residents."
Additionally, on June 18, Councillor Rebecca Bligh will be introducing a motion called "Jumpstarting Rental Housing: Bold Action to Boost Rental Housing Construction in Tough Economic Times," which asks staff to "report back on options to design a program of tax abatement for projects that prioritize rental and below market rental units while deferring increases in property taxes for properties redeveloped for rental housing, holding the tax rate based on the assessed value prior to redevelopment, for a determined period."