Very generally speaking, cities build skyscrapers because of some mix of natural market forces and symbolic prestige. In cities like New York and Hong Kong, where land is extremely scarce and valuable, the only option is to go up. Tall buildings are essential. And in cities like Dubai, I think it’s fair to say that symbolic prestige has been the greater motivator, at least at the outset of the city’s modern reinvention as a global city. Tall, over-the-top buildings helped put the city on the map, even when tall, over-the-top buildings weren’t necessary from a direct economic standpoint.
Another way to encourage tall buildings is to simply restrict everything else. Ontario’s Places to Grow Act of 2005 was well-intentioned. It was designed to encourage intensification, support transit investment, and curb urban sprawl. I believe that all of these things are desirable planning outcomes. But one of the ways that intensification was sold, politically, was that growth would only be directed to specific areas and that the preeminence of single-family housing in the region would not be in any way threatened.
The result is what has been pejoratively referred to as “tall and sprawl,” meaning tall buildings surrounded by vast swaths of low-density housing. It’s a built-form contrast that feels unnatural precisely because it is a market distortion created by policy. In a pure market without zoning constraints, the likely built-form outcome would be a smoother density gradient down from major urban nodes and transit stations (where land values tend to be higher). Of course, the Toronto region is filled with countless counterexamples of this.
Now, to be fair, good work is being done to address this missing layer of medium density, but we’re not there yet. And we’re still working through the supply of the last cycle. Rachelle Younglai recently published an article in The Globe and Mail called “Condo developers outside Toronto feeling the biggest strain from market’s downturn.” This is not surprising. Peripheral markets generally get hit the hardest during real estate downturns and take the longest to bounce back. But on top of this, there are suburban towers that probably didn’t need to get built. The economic imperative was tenuous but for the planning restrictions and the pre-construction condo market.
My suggestion would be to upzone the areas surrounding these towers and remove as many development constraints as possible, especially around transit nodes. This may seem paradoxical given we’re currently talking about excess supply, but the glut is likely a product mismatch problem. Allowing the surrounding areas to fill in invites the market to build what is most in demand, smooth out the density gradient, build amenities, and create destinations that could then lift the value of the entire node.
This is not an immediate solution, but it’s a path toward a more natural market outcome. Need a case study to point to? Look to Tokyo. Flexible permissions, mixed-use zones by default, and an orientation around rail have allowed Tokyo to organically evolve into one of the most livable global cities on the planet.