Accelerating Housing Development in Toronto: A New Era for Transit-Growth Areas
Introduction
In an ambitious move to tackle the housing crisis, the city of Toronto has received approval for significant developments aimed at transforming 120 major transit station areas (MTSAs). Following this announcement in August, city officials, including Mayor Olivia Chow, are now paving the way for effective implementation. This initiative is crucial in addressing Toronto’s pressing housing needs and supporting the provincial goal of constructing 285,000 new homes by 2031.
Overview of MTSAs and PMTSAs
The concept of MTSAs is pivotal in urban planning, signifying a 10-minute walking radius around existing or planned higher-order transit stations. These areas are designed to foster higher density and ensure that development meets the provincial government’s minimum requirements for residential and employment density per hectare. Specifically, Protected Major Transit Station Areas (PMTSAs) are designated to mandate varied density requirements and enable municipalities to implement inclusionary zoning, ensuring that new residential developments include a portion of affordable housing units.
Mayor Chow’s Commitment and Strategy
During a recent briefing, Mayor Olivia Chow highlighted the significance of the newly approved policies, offering insights into the next steps for both MTSAs and PMTSAs. This includes the proactive development of a work plan that aims to expedite the implementation of MTSA and PMTSA zoning bylaws. Scheduled for presentation to the Planning and Housing Committee on September 25, the work plan outlines the city’s strategy to submit a comprehensive zoning proposal for Toronto City Council’s consideration by late spring or early summer of 2026.
Funding Support for the Initiative
The zoning implementation is part of a larger strategy approved by city council under the federal Housing Accelerator Fund. The Canada Mortgage and Housing Corporation has committed a substantial $471.1 million in funding to support Toronto’s housing goals. This financial backing is instrumental in facilitating the city’s ambitions to develop additional housing and expand transit-oriented growth zones.
The Role of Inclusionary Zoning
A critical component of the PMTSA framework is the provision for inclusionary zoning. This policy mandates that new housing developments in these designated areas must include affordable housing options. This is particularly significant in a city known for its escalating housing costs. By integrating affordable units within new developments, the city aims to promote economic diversity and sustainability within communities.
Conclusion: Looking Ahead
With the groundwork laid for rapid implementation of these zoning policies, Toronto is positioned to embark on a transformative journey that prioritizes both density and livability. The upcoming proposal to City Council will be a crucial stepping stone in realizing the ambitious housing targets set for the coming years. As the city continues to evolve, community engagement and thoughtful planning will be essential in ensuring that growth serves all residents equitably. For those interested in exploring the full details of this initiative, click here for the report.
In a time when affordable housing is more critical than ever, Toronto’s focus on leveraging transit station areas for sustainable development represents not just a policy change, but a vital step towards a more inclusive urban future.


