A significant shift is underway in Toronto. Major banks and the Ontario government are calling staff back to in-office work. Estimates suggest hundreds of thousands of people could be returning to the city this fall. The impact on Toronto’s real estate market is still unfolding, but for those planning a move back, it’s worth understanding how the landscape has changed over the last few years.
How the Market Has Evolved
During the height of remote work, Toronto’s condo inventory rose sharply. What was once a period of ultra-low supply turned into one of the highest inventories the city has seen. At the same time, many condo owners who wanted more space without giving up a Toronto address shifted toward semi-detached and detached homes in desirable neighbourhoods.
This trend reshaped demand: condos became more abundant, while family-oriented areas with larger homes only grew hotter.
Where Condos Are in Demand
For buyers prioritizing location and amenities, certain condo districts stand out:
The Push for More Space
For those looking beyond condos, several neighbourhoods have drawn consistent interest:
Market Conditions in 2025
When looking at months of inventory (active listings divided by sales):
Toronto’s detached and semi-detached homes in prime neighbourhoods are still firmly in seller’s market territory. Condos, however, lean toward a buyer’s market overall, with exceptions. For example, parts of the west end (such as the Junction and High Park) are in a more balanced state, while luxury semis in Trinity Bellwoods take longer to sell due to higher price points.
What This Means for Fall 2025
For those returning to Toronto, conditions vary depending on what you’re looking for. Condos offer more selection and negotiating power, while family homes in established areas continue to move quickly. Proximity to transit, schools, and downtown employment hubs will remain major drivers of demand.
As the city braces for an influx of workers returning to in-person jobs, Toronto’s housing market may tighten further. Understanding where supply exists — and where competition remains strong — can help anyone planning their next move make informed decisions.
How the Market Has Evolved
During the height of remote work, Toronto’s condo inventory rose sharply. What was once a period of ultra-low supply turned into one of the highest inventories the city has seen. At the same time, many condo owners who wanted more space without giving up a Toronto address shifted toward semi-detached and detached homes in desirable neighbourhoods.
This trend reshaped demand: condos became more abundant, while family-oriented areas with larger homes only grew hotter.
Where Condos Are in Demand
For buyers prioritizing location and amenities, certain condo districts stand out:
- C01 and C08 (Downtown Core and Waterfront): These areas hold the city’s highest density of condos. South C08, especially near the waterfront east of Yonge Street, is seeing new developments with impressive lake views. While access to amenities can take extra effort here, it remains an up-and-coming pocket.
- King West, Queen West, and Trinity Bellwoods: These neighbourhoods continue to be strongholds, with a strong community of owner-occupiers.
- Yonge & St. Clair to Yonge & Eglinton: New condo projects in this corridor benefit from direct subway access, making commuting more practical.
- The Danforth and High Park: Both areas combine character housing stock with excellent transit access. Loft conversions and church redevelopments on the east side, and green space near High Park on the west, make them appealing options.
The Push for More Space
For those looking beyond condos, several neighbourhoods have drawn consistent interest:
- Palmerston–Little Italy and College Street: Highly walkable with restaurants and shops, though on the pricier side.
- The Junction and High Park North/Swansea: Growth in cafés, restaurants, and proximity to parkland has boosted demand.
- North Riverdale and Danforth: Still seeing heavy turnout at open houses, reflecting strong demand.
- Midtown and Central Pockets (Annex, Casa Loma, Rosedale, Moore Park): Longstanding favourites that remain competitive.
- Lawrence Park and Forest Hill: Always desirable, with strong schools and transit connections, these neighbourhoods remain highly sought-after in 2025.
Market Conditions in 2025
When looking at months of inventory (active listings divided by sales):
- 0–2 months = seller’s market
- 3–5 months = balanced market
- 6+ months = buyer’s market
Toronto’s detached and semi-detached homes in prime neighbourhoods are still firmly in seller’s market territory. Condos, however, lean toward a buyer’s market overall, with exceptions. For example, parts of the west end (such as the Junction and High Park) are in a more balanced state, while luxury semis in Trinity Bellwoods take longer to sell due to higher price points.
What This Means for Fall 2025
For those returning to Toronto, conditions vary depending on what you’re looking for. Condos offer more selection and negotiating power, while family homes in established areas continue to move quickly. Proximity to transit, schools, and downtown employment hubs will remain major drivers of demand.
As the city braces for an influx of workers returning to in-person jobs, Toronto’s housing market may tighten further. Understanding where supply exists — and where competition remains strong — can help anyone planning their next move make informed decisions.
