
The great density dilution
Development density used to be hugely valuable in Toronto; now, it’s not.
Development density used to have significant value here in Toronto. Every square meter mattered. In fact, as many of you know, entire development businesses were centered around assembling sites, rezoning for the maximum amount of area, and then selling to another developer who would then build out the final project. The process of rezoning a site often takes years, and sometimes much longer, so there's a logic to splitting up these efforts.
But then demand waned and, all of a sudden, development density had much less value, if it was even liquid at all. This business model no longer works. On top of this, the City of Toronto is now in the process of updating its zoning by-laws to allow greater heights and densities across 120 major transit station areas and protected major transit station areas across the city. These updates are expected to be brought to City Council in the spring of this year.
The result is that these areas will have minimum heights and densities that may take a site's zoning from 4 storeys to 30 storeys. And the great irony will be that sites that spent years, and sometimes decades, battling for taller buildings, may soon receive as-of-right permissions that exceed their hard-fought zoning approvals. This is how much the planning and development landscape has changed in Toronto over the years.
And it further reinforces the point I made back in 2024 when I wrote that development value has shifted from land to the build. Density is now widely available. Execution is what matters most today.


