Transit-Oriented Development
Explore transit-oriented development in Canadian real estate — how walkable, transit-linked projects shape urban growth and boost property value.
June 09, 2025
What is Transit-Oriented Development?
Transit-oriented development (TOD) is a planning strategy that concentrates residential, commercial, and recreational buildings near public transit hubs to encourage sustainable, walkable communities.
Why Transit-Oriented Development Matters in Real Estate
In Canadian real estate, TOD is a growing trend in urban planning that boosts accessibility, reduces car dependency, and increases land value.
Key elements of TOD include:
- Mixed-use zoning near transit stations
- Pedestrian-friendly design and density
- Reduced parking requirements
- Proximity to rail, bus, or LRT lines
Properties near transit hubs often see faster appreciation and strong rental demand. Municipal governments may offer incentives or upzone TOD areas.
Understanding TOD helps developers and buyers identify high-growth areas with long-term sustainability benefits.
Example of Transit-Oriented Development in Action
A condo developer secures land near a new light rail station, capitalizing on TOD policies that allow higher density and reduced parking mandates.
Key Takeaways
- Focuses development near transit hubs
- Encourages walkable, mixed-use areas
- Increases land value and rental demand
- Supported by city policies and incentives
- Appeals to sustainability-focused buyers
Related Terms
- Zoning
- Urban Planning
- Walkability
- Land Value
- Housing Supply
An overview of the two Ravine buildings. (Newmark)
95 Clegg Road in Markham, Ontario. (Colliers)
95 Clegg Road (centre) in Markham, Ontario. (Colliers)
Small-scale infill share of housing starts in Toronto, Vancouver, and Edmonton/CMHC
Housing starts for one to eight unit developments/CMHC
An overview of Hedge Road Landing. (Alliance Homes)
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.