Why Is Toronto Real Estate So Expensive?

Toronto real estate is expensive due to limited land, high immigration, and consistently strong demand that pushes prices above the national average.

In 2025, downtown condos typically hover around $700,000, and detached homes across central Toronto often exceed $1.5 million (TRREB). Prices remain elevated because supply cannot keep pace with demand. Ontario’s Greenbelt restricts outward development, and government housing policies often add complexity instead of freeing up new land for development. As a result, most new housing supply is concentrated in mid- and high-rise buildings, not ground-oriented homes.

Demand, meanwhile, keeps climbing. More than 100,000 new residents arrive in the GTA annually, primarily through immigration, creating constant pressure on the housing stock. Millennials entering their mid-30s add another layer, as this demographic represents one-third of the Canadian population and is now driving demand for first-time buyers.

The Fox Marin Real Estate Team has navigated these supply-demand realities across 1,000+ successful transactions. We help investors understand why paying a premium in Toronto often secures both stability and long-term appreciation.

Key takeaway: Toronto’s expensive prices reflect a persistent imbalance between demand and supply, making the city’s real estate both costly and resilient.

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