What Drives Long-Term Demand in the Toronto Market?

Toronto’s long-term housing demand is driven by immigration, the entry of millennial buyers into the market, and steady job growth in Canada’s largest city.

Population growth is the most significant driver of Toronto’s growth. Since 2020, more than 100,000 new residents have arrived annually, mostly through international immigration. Despite some interprovincial outflows, the city’s population growth remains robust. Each newcomer household adds to rental and ownership demand, further tightening the supply.

Demographics add fuel. Millennials, now reaching peak homebuying age, represent a huge demand wave. TRREB projects that 700,000 millennial buyers will purchase homes across Ontario in the next decade, many of whom will target Toronto condos, semi-detached houses, and family-friendly neighbourhoods like Leslieville or Summerhill.
Employment also matters. Toronto is Canada’s economic hub, attracting workers to the tech, finance, and education sectors. Stable job growth paired with constrained housing keeps long-term interest resilient.

The Fox Marin Real Estate Team leverages these fundamentals to guide investors. Whether identifying rental properties that capture immigration demand or family-oriented assets positioned for millennial buyers, our strategies align investment opportunities with Toronto’s durable demand drivers.

Key takeaway: Immigration, millennial homebuyers, and job growth will continue to drive high demand for Toronto’s housing market in the foreseeable future.

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