Toronto’s downtown core has become a hub of activity, successfully attracting people and businesses while fostering a vibrant cityscape. Its evolution reflects the influence of market trends and changing societal needs. Although Toronto once followed a centralized city model, significant growth in residential development began after decades of limited construction. The downtown population, which had been declining until the 1970s, began stabilizing and growing. However, the city now faces accommodation challenges driven by the demands of millennials and baby boomers, whose lifestyles and housing needs differ from past generations.

Downtown housing is prohibitively expensive, with home prices increasing at a much faster rate than household incomes. Millennials, raised in a technological environment that fosters independence, prefer living close to work, education, and recreational spaces. Meanwhile, baby boomers are downsizing, seeking to age in familiar communities. Between 2016 and 2026, the demand for family-oriented housing is expected to rise significantly, with new family households projected to double. This shift highlights the importance of preparing for demographic changes and economic realities.

The housing market is currently dominated by condominium developments, primarily small one-bedroom units, while the construction of multi-bedroom apartments has declined. Although efforts are underway to increase the availability of larger units, they are often smaller than those built in the 1990s to maintain affordability. The gap between detached homes and condominium prices has widened, making “missing middle” housing, such as townhouses, mid-rise apartments, and duplexes, a viable solution. These options offer more affordable and practical living arrangements for both millennials and downsizing seniors, creating opportunities for a balanced urban living environment.