Market update week ending November 15th

27 November 2024
Eileen Wylie

Mayor Olivia Chow has proposed a significant overhaul to the process of housing construction in Toronto, aiming to introduce a new wave of buildings along the city’s major streets.

In recent years, Toronto’s development has been largely dominated by tall towers. However, Chow’s initiative to revise zoning regulations could pave the way for a more Paris-like residential density to become widespread in the city.

In a letter addressed to the Planning and Housing Committee members, Mayor Chow emphasised the need to be “bold and ambitious” in tackling the housing crisis, which will require “enabling more housing across our city.”

Outdated zoning rules — some dating back to the mid-20th century — currently restrict new home construction, as developers often face lengthy, expensive battles to get properties rezoned for housing.

A broad implementation of new as-of-right zoning on streets classified as Avenues would permit mid-rise projects within these designated height ranges to bypass the rezoning process, effectively accelerating housing development and cutting costs for both buyers and tenants.

Chow is advocating for the as-of-right zoning precisely for this reason, informing committee members that “This will expedite approvals and enable the faster, more affordable delivery of new homes.”

While the proposal may seem fresh, it has been under consideration well before Chow took office in 2024 and is one of 54 actions recommended for inclusion in the City’s Official Plan.

If the recommendations are adopted, current zoning bylaws would be modified to allow for increased building heights on lands identified as Avenues and designated Mixed-Use Areas in the Official Plan.

Property owners looking to develop on these Avenues within the new height parameters would be subject to the simpler minor variance process managed by the City’s committee of adjustment.

This change would also ease the burden on the City’s planning department, which has been overwhelmed for years by a constant stream of rezoning applications, many of which would no longer be required under the new zoning system.

Toronto’s Avenues are located in highly livable areas, close to transit, employment hubs, schools, parks, grocery stores, and other services. There is substantial potential to create vibrant communities that serve diverse populations.

“We can enable more homes along these Avenues and offer more people the chance to reside in our city,” Chow stated.

The mayor stresses that this effort “must happen swiftly” but also “must be approached thoughtfully.” Rather than “assigning new as-of-right heights arbitrarily,” Chow’s plan would have City staff quickly conduct the necessary technical assessments to expand housing permissions on these key thoroughfares.

The proposed changes could significantly impact Toronto’s housing shortage, with estimates suggesting the possibility of unlocking an additional 61,000 homes, beyond the roughly 21,500 units that are achievable under current zoning.

Upon adopting the plan, the Planning and Housing Committee recommended that the council proceed with the zoning bylaw updates and revise mid-rise urban design guidelines to provide more flexibility for taller and denser mid-rise buildings along Avenues.

A status report will be presented at the December 5, 2024, Planning and Housing Committee meeting, followed by another report in early 2025 that will identify Avenues well-served by transit.