Introduction

Investing near transit isn’t just about convenience; it’s about strategic growth. Properties within a 10-minute walk of a subway or LRT stop have a history of commanding significant premiums, attracting long-term tenants, and outperforming the broader market. As the Greater Toronto Area (GTA) accelerates both its transit expansion and housing approval processes, understanding where the biggest upside lies is key for savvy investors.

The Big Picture: Policy & Scale

The Ontario government has introduced aggressive policies to combat the housing crisis by tying development directly to transit infrastructure. The plan is to create 1.5 million new homes over the next decade, with a specific focus on developing higher-density communities around 120 major transit station areas. This "Transit-Oriented Communities" initiative aims to:

• Unlock Vast Swaths of Land: By simplifying zoning and approving higher-density permissions, the plan opens up previously low-rise or under-utilized land for multi-unit projects.

• Fast-Track Approvals: With shortened timelines and a focus on ministerial zoning orders (MZOs), the approval process for new projects is being streamlined. This allows builders to start construction faster and, crucially, allows early investors to capture price appreciation before mass construction begins.

Key Projects to Watch

While several projects are underway, here is a look at three major extensions poised to redefine their respective communities.

Data Source: Metrolinx & TTC public records. The Eglinton East LRT is a City of Toronto-led project that still requires full funding for construction to proceed beyond the design phase. The Finch West LRT is in its final stages of testing and commissioning.

Data Source: Metrolinx & TTC public records.

Emerging Hotspots for Early Investors

The most significant gains are often found in areas that are not yet established, but where new transit is a confirmed catalyst. Here are some key areas to watch:

• North York (Steeles West Station): While the Finch West LRT is expected to be operational in late 2025, the area surrounding the new Steeles West Station remains a hotspot for early investors. Similar projects have shown historic price growth in the 8%–12% range. New mid-rise condo projects here offer a significant price advantage over comparable downtown units.

• Richmond Hill Centre: As the Yonge North Subway Extension takes shape, Richmond Hill Centre is positioned as the new "urban growth centre" for the region, with planned office and retail space. The market is already responding, and an investment here is a bet on the long-term vision of a new downtown core.

• Markham–Unionville: The Yonge North extension will connect Markham directly to the subway system, a first for the city. This provides an instant link to major tech and corporate campuses. With strong demand, upcoming mixed-use nodes are projected to offer strong rental yields, making them attractive to both investors and end-users.

• Vaughan Metropolitan Centre (VMC): As an already established transit hub, VMC provides a powerful case study. Since the subway extension opened in 2017, average resale condo prices have seen substantial appreciation, underscoring the long-term impact of new transit. With further intensification planned, the momentum is expected to continue.

Pricing & Demand Dynamics

The impact of transit is quantifiable. A 2022 study by the C.D. Howe Institute found that properties within 500 meters of a new transit stop could see a value premium of up to 10-25% over properties further away.

For pre-construction, the opportunity is even more pronounced. Early-stage pricing for VIP access to pre-construction projects often offers a significant discount compared to final market value. By securing a deposit on these units, investors can lock in strong equity gains before the building is completed and fully integrated into the transit network.

• Properties within 500 m of transit: Historical premiums of 10%–25%.

• Early pre-construction pricing: Typically sits 20%–30% below end-value.

Actionable Investment Strategies

1. Secure Pre-Launch Units: Leverage relationships with brokers who have access to "Platinum" and "VIP" sales events to get the best pricing and selection before a project is launched to the general public.

2. Conduct Due Diligence: Go beyond the glossy brochures. Audit final station alignment maps, check shadowing studies, and confirm local zoning changes to ensure the project aligns with your long-term vision.

3. Plan Your Exit: The best returns are often realized in the 3- to 5-year hold period, as the project nears completion and the full benefit of transit service becomes apparent to the market.

4. Diversify Your Asset Mix: Consider combining low-rise townhomes for steady cash flow with pre-construction condos for rapid price appreciation.

Next Steps

The GTA is undergoing a fundamental shift in its urban planning, and transit-oriented development is at the heart of this change. This is a chance to invest not just in real estate, but in the future of our communities.

To learn more, which section would you like us to explore in greater detail?

• Detailed neighborhood profiles with real-life comparables

• A deep dive on zoning changes and fast-track approvals

• Sample financial models illustrating hold periods and ROI

Welcome to the July 2025 market report for the Greater Toronto Area! This month's data from the Toronto Regional Real Estate Board (TRREB) shows a dynamic and evolving market. After experiencing a slight slowdown, we're seeing signs of renewed strength, with home sales marking the best July performance since 2021. A combination of improved affordability from lower home prices and borrowing costs is drawing more buyers into the market, suggesting a modest tightening in market conditions compared to last year.

Overall Market Summary 📊

The GTA real estate market in July 2025 saw an increase in both sales and new listings compared to the same period last year. This growth points to an active market with buyers demonstrating a greater willingness to transact5. While prices are slightly lower year-over-year, the month-over-month trend suggests a flattening.

• Home Sales: A total of 6,100 homes were sold in July 2025, which is a significant 10.9% increase compared to the 5,498 sales in July 2024.

• Average Selling Price: The average selling price was $1,051,719, down by 5.5% compared to July 2024. On a month-over-month seasonally adjusted basis, the average selling price remained flat compared to June.

• New Listings: New listings entered into the MLS® System totaled 17,613, up by 5.7% year-over-year.

• Days on Market: The average days a listing spent on the market increased from 24 days in July 2024 to 30 days in July 2025. This suggests properties are taking a bit longer to sell despite the rise in sales.

In-Depth Look by Major Home Type 🏠

Here's a breakdown of how different property types performed across the GTA in July 2025.

Detached Homes

Detached homes saw a solid increase in sales, with 2,795 transactions. The average price for a detached home was $1,361,660, though this marks a 5.1% year-over-year decrease.

• City of Toronto: The average price for a detached home was significantly higher at $1,572,832, with 675 sales15.

• 905 Regions: The average price was $1,294,424, with 2,120 sales16.

Semi-Detached Homes

This segment experienced the largest growth in sales, with transactions up 25.5% year-over-year to 596 units.

• Average Price: The average price was $1,041,359, a modest 2.3% decrease from July 2024.

• City of Toronto: Average prices were $1,242,388, with a significant year-over-year sales increase of 48.2%.

• 905 Regions: Average prices were lower at $894,094, but sales still grew by 12.8%.

Townhouses

Townhouse sales saw a 7.9% year-over-year increase, with 1,047 sales in July 2025.

• Average Price: The average price was $849,380, down 7.4% from the previous year.

• City of Toronto: Average prices were $920,197.

• 905 Regions: Average prices were $829,332.

Condominiums

The condo market showed signs of recovery with a 5.8% increase in sales to 1,576 units.

• Average Price: The average price was $651,483, representing a 9.3% year-over-year decrease.

• City of Toronto: Average prices were $684,257 with 1,028 sales.

• 905 Regions: Average prices were lower at $590,004, with 548 sales and a robust 10.7% year-over-year sales increase.

What This Means for Buyers and Sellers in the GTA 💡

The July 2025 data paints a picture of a more active and dynamic market than we've seen recently. For both buyers and sellers, an informed and strategic approach is more critical than ever.

Advice for Sellers:

• Strategic Pricing is Key: The market has not fully reverted to a seller's market30. With more new listings and an average of 30 days on the market for a sold home, pricing your property correctly from day one is essential to avoid it becoming stale. Chasing the market with an overpriced listing will likely lead to longer days on market and potential price reductions.

• Focus on Presentation: Your home needs to stand out from the increased inventory. Professional staging, high-quality photography, and a strong marketing strategy are crucial to attracting serious buyers and achieving your desired price.

Advice for Buyers:

• Increased Opportunity: The rise in new listings and the higher number of active listings (30,215 active listings in July 2025, up from 23,936 in July 2024) mean you have more choice. While sales are up, there's less frantic competition than in previous years, which could offer you more time to find the right property.

• Leverage Economic Indicators: Keep an eye on economic indicators like the Bank of Canada's overnight rate and mortgage rates. Improved affordability brought about by lower prices and borrowing costs is a key factor driving sales. Understanding these trends can help you time your purchase effectively.

Ready to Navigate the Market with Confidence? 🚀

Whether you are looking to buy, sell, or invest, understanding these detailed trends is the first step. The right strategy can make all the difference in this shifting market.

Let's discuss how these insights apply to your unique real estate goals. We can help you create a personalized plan to achieve the best possible outcome.

📞 Contact us at 416-886-2000 to book a consultation today! 🏡✨