Toronto Real Estate Trends to Watch in 2025

Toronto’s real estate market is always evolving—but in 2025, buyers, sellers, and investors are watching new patterns emerge that go beyond just interest rates and inventory levels. This year, market trends are being shaped by technology, changing lifestyles, new government policy, and evolving demographics.

Whether you're thinking of buying, selling, or investing, here are the top real estate trends to keep your eyes on in Toronto this year.

1. Multigenerational Living Is on the Rise

With rising home prices and cultural shifts, more families are choosing to live under one roof. We’re seeing increased demand for homes with separate entrances, finished basements, and in-law suites.

Why it's trending:

• Affordability: Sharing costs makes ownership more feasible
• Caregiving: Elderly parents and young children benefit from proximity
• Cultural norms: Common in many communities and becoming more mainstream

➡️ What to watch: Listings with income potential or separate units will command more attention and higher prices.

2. Midtown and Scarborough Are Gaining Steam

While downtown Toronto remains pricey and dense, more buyers are moving toward midtown and eastern pockets like Scarborough for value, space, and transit access. New developments and transit expansion are making these areas more attractive.

Notable changes:

• Eglinton LRT nearing completion
• Increased condo developments around Kennedy, Golden Mile, and Warden
• Big demand for low-rise and stacked townhouses

➡️ Tip: Investors looking for growth potential should keep an eye on pre-construction projects in these areas.

3. Smart Homes and Green Features Drive Buyer Demand

Buyers are looking for homes that save them time and money—and that includes energy efficiency and smart tech. From smart thermostats to solar panels and EV chargers, these features aren’t just nice-to-haves anymore.

What buyers want:

• Energy Star windows and insulation
• Smart lighting, security, and home automation
• Lower utility bills and smaller carbon footprints

➡️ Tip: Sellers with green upgrades should highlight them in listings and showings—they boost value and interest.

4. Investors Are Back in the Pre-Construction Game

After a cautious few years, investors are stepping back into the market—especially for pre-construction condos. Why? They’re betting on long-term growth, rental demand, and extended occupancy timelines that allow capital buildup.

Key factors:

• Strong rental market and immigration-driven demand
• Long closing periods (3–5 years out)
• Builder incentives and low down payments

➡️ Tip: Make sure to research builder reputations, closing costs, and assignment clauses before signing.

5. Tech-Savvy Buyers Expect a Better Experience

The home buying process is becoming more digital—from virtual tours to e-signatures and AI-enhanced listings. In 2025, realtors who use tech tools to simplify the journey are standing out.

What’s changing:

• 3D tours and drone video walkthroughs are standard
• Instant document access, digital offers, and remote closings
• Buyers prefer messaging over phone calls and want quick updates

➡️ Tip: If you're a seller, work with agents who offer strong digital marketing strategies.

6. Government Policy Will Keep Influencing Supply and Affordability

From new CMHC guidelines to Toronto's vacant home tax, government policies continue to impact what people can afford—and what developers can build.

What to watch:

• Rules around foreign ownership
• Incentives for purpose-built rentals
• Zoning changes to allow multiplexes and laneway suites

➡️ Tip: Stay updated with your realtor or mortgage advisor on changing regulations and how they affect your plans.

Final Thoughts

Toronto real estate in 2025 is being shaped by more than prices—it’s about how people want to live, how cities adapt, and how technology empowers smarter decisions. Whether you're in the market now or planning your next move, understanding the trends puts you ahead of the curve.