In my 15 years covering Toronto’s development scene, I’ve rarely seen such a dramatic shift in housing policy as what emerged this week from Queen’s Park. The Ontario government’s ambitious “Housing Reset” strategy aims to deliver 1.5 million new homes by spring 2026, with Toronto positioned to receive the lion’s share of development.
“We’re completely reimagining how housing gets built in this province,” said Housing Minister Paul Calandra during Tuesday’s announcement at a construction site in North York. “The days of endless red tape and municipal roadblocks are over.”
The plan introduces sweeping changes to development regulations, particularly in high-density corridors along major transit routes. For Toronto developers like Rahim Noorani, who I spoke with at his Danforth Avenue office yesterday, the announcement feels like “finally removing the handcuffs” from the industry.
“We’ve had projects sitting in approval limbo for years,” Noorani explained, pointing to architectural renderings of a 32-story mixed-use building his firm has proposed near Pape Station. “Now there’s a clear pathway forward.”
The strategy centers on three key pillars: accelerated approvals for transit-oriented developments, provincial overrides of municipal zoning restrictions, and significant tax incentives for affordable housing components.
According to data from the Building Industry and Land Development Association, housing starts in Toronto declined 22% in 2023 despite growing demand. The new measures aim to reverse this trend dramatically, with projections showing potential for 85,000 new units in Toronto alone by late 2025.
City Councillor Ana Bailão expressed cautious optimism about the plan. “We desperately need more housing supply, especially affordable units,” she told me during a phone conversation Wednesday. “But we can’t sacrifice good planning principles or community input entirely.”
The strategy has drawn criticism from some community groups concerned about density and neighborhood character. Walking through the Junction yesterday afternoon, I noticed lawn signs opposing a nearby 28-story development that would now likely proceed under the new rules.
Jennifer Keesmaat, Toronto’s former chief planner, raised concerns about infrastructure capacity in a detailed Twitter thread, writing: “Building housing without corresponding investments in sewers, water mains, schools, and parks isn’t creating communities – it’s creating problems.”
The province counters these concerns with promises of $1.2 billion in infrastructure funding tied directly to housing developments, though municipal officials question whether this will suffice for the scale of growth envisioned.
For young Torontonians like marketing professional Samir Patel, whom I met at a coffee shop near his Liberty Village rental, the prospect of more housing can’t come soon enough. “I’m paying $2,850 for a one-bedroom and barely making it work,” he said, stirring his latte. “My parents bought their first house at my age. That seems impossible now.”
The average Toronto home price reached $1.2 million in February according to the Toronto Regional Real Estate Board, remaining unaffordable for most first-time buyers despite recent market cooling.
Industry experts from RBC Economics suggest the strategy’s success hinges on construction capacity and labor availability. A recent report from the Ontario Construction Secretariat indicates the province faces a shortage of approximately 100,000 skilled trades workers over the next decade.
“You can approve projects all day long,” noted economist Diana Petramala from Toronto Metropolitan University’s Centre for Urban Research, “but without enough workers to build them, timelines will stretch regardless of policy changes.”
The strategy also introduces a controversial “use it or lose it” provision requiring developers to begin construction within 18 months of approval or face financial penalties – a measure industry groups have lobbied against unsuccessfully.
For Toronto neighborhoods like Leslieville, Mimico, and midtown around Yonge and Eglinton, the changes likely mean significant transformation. Areas within 800 meters of major transit stations will automatically permit buildings of at least 10 stories, regardless of existing neighborhood context.
Walking back to my office along King Street yesterday afternoon, I couldn’t help noticing the forest of construction cranes already dotting the skyline. If the province’s strategy succeeds, that view will become dramatically more crowded by 2026 – for better or worse, depending entirely on whom you ask in this perpetually housing-hungry city.
