Toronto to overhaul transit oriented development zoning

Key Takeaways:

• Toronto is moving ahead with zoning changes around 120 transit station areas to allow higher density housing, aiming to help meet the provincial target of 285,000 new homes by 2031.
• The new rules permit taller buildings and greater density within walking distance of subways, light rail and GO stations, with inclusionary zoning in protected areas requiring affordable housing.
• City staff will present a workplan Sept. 25, with final zoning changes expected in 2026, supported by $471 million from the federal Housing Accelerator Fund.

The Whole Story:

Toronto is preparing to overhaul zoning rules around transit stations in a bid to accelerate housing construction, after the Ontario government signed off on 120 major and protected transit station areas across the city.

Mayor Olivia Chow said Wednesday the decision will help Toronto meet the province’s target of building 285,000 new homes by 2031, a goal tied to hundreds of millions in federal housing dollars.

The approvals, issued Aug. 15 by the Minister of Municipal Affairs and Housing, cover 25 Major Transit Station Areas (MTSAs) and 95 Protected Major Transit Station Areas (PMTSAs). The city says they will allow higher-density development close to existing and planned subway, light rail and GO stations.

MTSAs are generally defined as a 10-minute walk — about 500 to 800 metres — from a higher-order transit stop. Provincial rules require minimum density targets of 200 residents and jobs per hectare near subway stations, 160 near light rail stations and 150 around GO Transit stops.

Protected MTSAs add stricter requirements for how tall and dense buildings can be. They also give Toronto the power to use inclusionary zoning rules, which require a percentage of affordable housing units in new residential projects.

“This unlocks a huge housing opportunity for residents, for years to come,” Chow said in a statement. “With more housing near transit stations, we are looking at a future where Torontonians can more easily live, work and travel across the city we love. I thank the Province for their partnership and look forward to working with City Council and staff, as well as with the development industry, to get more housing built.”

City staff are set to present a workplan to the planning and housing committee on Sept. 25. It includes public consultations and a timeline to bring forward zoning bylaw amendments to council by late spring or early summer 2026.

The approvals will allow for significant increases in building heights and densities in neighbourhoods previously dominated by single-family homes. Within 200 metres of a station, six-storey apartment buildings would be permitted in residential neighbourhoods, while larger sites in mixed-use or regeneration areas could see towers of up to 30 storeys. Between 200 and 500 metres, buildings up to 20 storeys would be allowed.

The plan also permits floor space indexes — a measure of building density — of eight or more within 200 metres of transit and six or more within 200 to 500 metres. Additional height could be granted if developers provide block context plans that include new public streets, parks, open spaces and a mix of building types.

Coun. Gord Perks, who chairs the planning and housing committee, said the approvals were “long-awaited” and must now be matched with ambitious zoning changes.

“Now begins the work to ensure that the City of Toronto implements zoning that will achieve the main goals of this policy change – more homes and more affordability,” Perks said.

The zoning overhaul is one of eight initiatives tied to the federal Housing Accelerator Fund, which will provide Toronto with $471.1 million through the Canada Mortgage and Housing Corporation. The money is contingent on the city meeting housing targets set in agreement with Ottawa.

City staff say they will go beyond the minimum consultation requirements in provincial law, including hosting open houses in each community council district and creating a dedicated website with maps, reports and policy information.

Toronto has more than three million residents and is expected to absorb a large share of Ontario’s population growth in the coming decade. Housing affordability has been a growing concern as rents and prices remain among the highest in Canada.

The approvals do not cover every transit station area under review. The minister withheld decisions on 14 council-adopted areas, including East Harbour, Exhibition, Scarborough Centre, Gerrard-Carlaw and Yonge-Steeles. Policies for those sites will not take effect until the province issues separate rulings.

Some of the excluded areas are part of planned “transit-oriented communities” being negotiated between the province and developers. Others fall within special policy areas located in historic floodplains, where additional restrictions apply.

Despite the gaps, city officials say the approvals represent a major step toward reshaping how Toronto grows. The work ahead will focus on translating the broad provincial policies into detailed zoning bylaws that developers, residents and planners can rely on.

The planning and housing committee will review staff’s proposed workplan later this month, with council expected to debate final zoning changes in 2026.