Transforming Toronto: New Planning Reforms for Housing Development

The Ontario government, in partnership with Toronto City Hall, has recently announced a significant shift in urban planning policy that aims to tackle Canada’s pressing housing crisis. These reforms, unveiled by Ontario Housing Minister Rob Flack and Toronto Mayor Olivia Chow, promise to legalize larger apartment buildings in proximity to mass transit stations across Toronto, marking a pivotal moment for the city’s housing landscape.

Background of the Reforms

On August 15, 2025, a landmark announcement was made outlining changes to Toronto’s official plan affecting 120 designated mass transit station areas (MTSA). This reform allows for the construction of 30-storey towers within a 200-metre radius of transit stations, with six-storey apartments permitted even on side streets. Furthermore, within an approximate distance of 800 metres from stations, four-storey apartments are now authorized. As of now, negotiations for 14 more MTSA zones are ongoing.

Planning consultant Blair Scorgie noted the significance of this announcement, emphasizing that it symbolizes a substantial shift in Toronto’s approach to urban density. Despite this positive outlook, uncertainties remain regarding how the city will implement these changes, as final approval from the city council is necessary before any construction can commence.

The Urgency Behind the Changes

Toronto, like many major cities in Canada, is in the throes of a housing shortage exacerbated by rising real estate prices and stagnant wage growth. The province, along with municipal leaders, faces pressure from higher government levels to facilitate new housing construction. Minister Flack projected that these new regulations could pave the way for the development of up to 1.5 million new homes in Toronto over the next 25 years. This ambitious target reflects a mounting recognition that more housing is urgently needed to accommodate a growing population and to create livable urban spaces.

The City’s Dilemma

However, the implementation of these changes is not without complications. Toronto City Council must approve the proposed zoning changes before construction can actually begin, a process that could stir significant debate, especially with a municipal election slated for next October. Previous experiences illustrate the challenges: a vote earlier this year allowed sixplex apartments in select wards but not citywide, raising concerns about Mayor Chow’s ability to shepherd these reforms through a potentially contentious council.

Moreover, the city faces a looming ultimatum from the federal government. If Toronto fails to legalize six-unit apartments throughout the entire city, it stands to forfeit around $30 million in funding from the Housing Accelerator Fund—a key financial resource for advancing the city’s housing strategy.

Bridging the Gap: City and Province

The recent reforms also effectively resolve a standoff between Toronto and the provincial government that has lasted since 2019. During that year, the Ford government identified 180 mass transit station areas in Toronto and pushed the city to establish density targets conducive to maximizing the city’s existing transit infrastructure. However, initial zoning proposals made by Toronto were met with criticism for being insufficient, leaving the city in a state of uncertainty.

City planner Jason Thorne remarked that the new density reforms are the result of negotiations between city and provincial staff and represent a more ambitious approach to urban planning centered around transit hubs. However, for these policies to come to fruition, the city must draft detailed maps of the MTSAs and secure new zoning approvals from the council—tasks that generally entail extensive timelines but are now prioritized for quick resolution.

Progressives’ Victory and Challenges for Developers

The changes include the activation of “inclusionary zoning” in most MTSA areas, a policy requiring new developments of 100 or more units to allocate 5% for affordable rentals. Seen as a victory for progressive political factions and advocates for affordable housing, this policy aims to ensure that the city does not merely create market-rate units but also addresses the critical need for accessible living spaces.

However, this inclusionary zoning could present challenges for developers, some of whom have previously navigated city regulations that historically did not permit large residential projects by default. David Bronskill, a lawyer specializing in real estate negotiations, warned that while this policy is necessary, it could potentially delay construction and complicate existing projects, thereby impacting the overall delivery of new housing.

A Broader Context of Planning in Ontario

The policy adjustments reflect broader tensions within urban planning in Ontario, where the provincial government has emphasized urban intensification since 2005. Municipalities like Toronto are expected to implement zoning that aligns with provincial growth objectives, often resulting in complex negotiations. Previously, attempts to increase urban density in transit-adjacent areas faced significant challenges, with developers frequently having to navigate lengthy approvals processes peppered with obstacles.

Moving forward, observers like Alex Beheshti argue that these reforms could streamline the construction process. Still, with an election looming and political landscapes shifting, the future remains uncertain.

Conclusion: A Step Toward a Sustainable Future

The new planning reforms in Toronto represent a crucial and forward-thinking approach to addressing the city’s housing challenges. As urban populations soar and the need for affordable housing intensifies, these policies aim to create more inclusive living environments while simultaneously leveraging existing transit infrastructure. The coming months will be pivotal as city leaders seek to translate these ambitious plans into actionable frameworks, all while navigating the potential hurdles of municipal politics. Success lies not only in the policies themselves but also in the collaborative efforts required to bring them to life for the residents of Toronto.