The Market May Cool. Life Does Not.
When buyers and sellers talk about their next steps, they rarely begin with mortgage rates, bond yields, or market statitstics.
Instead, these discussions are intensely personal. A couple has their first child, and suddenly their condo feels too small. Someone may be caring for aging parents while balancing the needs of their own family. Newlyweds start thinking about combining households. Other relocate for work or face a separation and need to determine what comes next for the family home.
These kinds of life changes keep people moving, no matter what’s happening in the market.
As Kori Marin puts it:
“Life happens, and people need to live somewhere.”
This simple fact is why people keep buying and selling homes in every market, whether prices go up, down, or stay the same.
“The market may cool. Life does not.” – Kori Marin
Growing Families Continue to Drive Housing Demand
One of the main reasons people move is that they simply run out of space.
A lot of Toronto buyers start out in a condominium. Then life changes. A child arrives. Suddenly, you need a space for a stroller, the crib takes over the home office, toys pile up, and the den turns into a nursery.
Every bit of space gets used up.
Before long, that once-perfect condo starts to feel too small.
Many families today are willing to accept less money from a sale if it means a better quality of life.
As Ralph explains:
“Even if we sell our property at a lower price than we had hoped, we still have built up a fair amount of equity.”
For many families, it’s not about making the most profit. It’s about finding a better place to live for the next chapter of their lives.
For buyers planning their first move from renting to ownership, Fox Marin’s First-Time Buyer Academy provides practical guidance on navigating Toronto’s housing market with confidence.
Marriage, Divorce, and the Housing Decisions In Between
Few life events impact housing decisions more than changes in relationships.
When two people build a life together, real estate decisions often follow. More couples are combining resources to purchase homes that would be unaffordable on their own. In Toronto, where freehold housing often exceeds seven figures, two incomes have become one of the most common paths to homeownership.
The financial realities of the city are also accelerating those decisions. Many couples are moving in together sooner than previous generations, recognizing that sharing housing costs can provide a meaningful advantage in an increasingly expensive market.
At the opposite end of the spectrum, separation and divorce create an entirely different set of housing challenges.
What was once a single household often becomes two. In many cases, one real estate transaction becomes three: the sale of the family home followed by the purchase of two separate properties.
Affordability is also reshaping how some families navigate separation. A growing number of former couples are choosing to remain under the same roof for a period of time, a trend sometimes referred to as “nesting.” In these situations, former partners continue sharing a property while working through the financial realities of establishing separate households.
While every situation is unique, relationship changes remain one of the most consistent drivers of housing activity across the GTA. Whether two households are becoming one or one household is becoming two, life transitions continue to create real estate decisions regardless of market conditions.
The Bank of Mom and Dad Has Become a Permanent Market Force
If you ask almost any first-time buyer in Toronto how they bought their home, you’ll hear a common story.
Family help is now a major part of how people buy homes today.
Whether it’s a gifted down payment, a co-signed mortgage, an inheritance, or parents using their home equity, the Bank of Mom and Dad has become a significant part of the housing equation.
As Kori Marin notes:
“The Bank of Mom and Dad is part of the new purchasing model.”
Ralph Fox adds:
“Even if you’re making a strong household income, saving hundreds of thousands of dollars for a down payment while paying Toronto rents has become incredibly difficult without family assistance.”
This isn’t just happening in Toronto. Across Canada, older generations are passing down wealth, often in the form of real estate, to younger family members.
Estate Sales Are Increasing, But Not in the Way Many Expected
For years, people thought there would be a large increase in housing inventory as Canada’s baby boomers got older.
But it’s more complicated than that.
Estate homes aren’t always sold right away. Sometimes, children inherit the property and decide to keep it. Others move into the home themselves or hold it as a long-term family asset.
As a result, the expected increase in inventory hasn’t happened as quickly as many anticipated.
The wave of estate sales may still be coming, but it appears to be arriving much more gradually than many housing forecasts originally predicted.
Caring for Aging Parents Is Changing Housing Choices
Another major trend in Toronto real estate is the rise of multi-generational living.
Not long ago, in-law suites and secondary living spaces were considered a nice bonus. Today, they’re increasingly becoming a necessity.
Families are looking for ways to keep loved ones close while maintaining independence for everyone involved. That has led to growing demand for both homes with basement suites, garden suites, laneway houses, and flexible floor plans that can comfortably accommodate multiple generations under one roof.
Money and affordability are major factors. Long-term care and retirement residences can be expensive, and many older Canadians would prefer to remain near family and their community.
For many families, living together across generations has become both a lifestyle decision and a practical financial solution.
School Districts Still Influence Real Estate Decisions
School catchments remain one of the most overlooked drivers of housing demand.
For families with young children, access to highly regarded public schools can dramatically influence where they choose to live. In many neighbourhoods, school boundaries continue to impact home values and future resale potential.
What’s particularly important is that catchment boundaries can be surprisingly precise. Sometimes homes on opposite sides of the same street fall into entirely different school districts.
Even buyers without children should pay attention. School districts often influence future buyer demand and can become an important factor when it comes time to sell.
Career Opportunities Continue to Drive Housing Decisions
Even with all the discussion around affordability and economic uncertainty, Toronto remains Canada’s economic engine.
For many people, moving isn’t about timing the market. It’s about pursuing an opportunity.
Statistics Canada continues to identify employment as one of the primary drivers of long-distance moves. Whether it’s a promotion, transfer, a new role, or a career change, work remains one of the biggest factors influencing where people choose to live.
A Fox Marin, we’ve seen a noticeable increase in inquiries from Canadians returning from abroad, professionals relocating for work, and families moving to Toronto to access opportunities they simply can’t find elsewhere.
As Ralph Fox noted during the podcast:
“If you’re looking for opportunity, Toronto is going to rank better than most other cities in Canada.”
For many of these buyers, timing the market isn’t the primary concern. They’ve accepted the job. They’ve enrolled their children in school. They’ve committed to the next chapter of their lives. Buying or selling a home simply becomes one step in making that transition possible.
Fox Marin’s Relocation Services are designed specifically to help individuals and families navigate these transitions and settle into Toronto with confidence.
Why the Great Downsizing Wave Hasn’t Arrived
For years, many economists predicted that aging Baby Boomers would create a significant wave of housing inventory.
Instead, the opposite is happening.
Many older homeowners are living longer, staying put, aging in place, and increasingly passing homes directly to family members.
As a result, much of the low-rise inventory that many expected to enter the market simply isn’t appearing.
“The downsizing wave has yet to arrive.” – Kori Marin
Many seniors don’t see a compelling reason to move.
They’ve spent decades building relationships in their neighbourhoods. They know the local shops, the parks, the neighbourhoods across the street, and the routines that make their community feel like home.
When they add up the costs of selling, moving, land transfer taxes, and condominium fees, many conclude it’s better to stay put.
As Kori Marin explains:
“People want to stay where they are. They know their neighbours, they know their community, and many simply don’t see a financial advantage in moving.”
For many homeowners, aging in place has become both an emotional and financial decision.
This reality continues to influence housing supply across Toronto in ways many experts did not anticipate.
The Bigger Lesson: Real Estate Is About People
The main point is simple: real estate isn’t just an investment. It’s closely tied to everyday life.
People get married and divorced. Families grow. Parents age. Careers change. Children start school. People inherit wealth. Families relocate.
These things happen regardless of what interest rates are doing or what the latest headlines predict.
As Ralph Fox observed:
“What makes residential real estate so interesting and unique is, yes, it’s an investment, yes, it’s an investment vehicle, but it’s one that you live in with utility.”
This is what makes housing different from most other investments.
Market conditions might influence timing, but life often determines necessity.
Families welcoming a child, helping aging parents, relocating for work, or navigating a major life transition rarely make decisions based solely on economics. They’re making decisions about how and where they want to live.
The numbers matter. The market matters. But the people behind those decisions matter even more.
Markets rise and fall. Interest rates move up and down. Headlines come and go.
Yet through every cycle, people continue to build families, pursue opportunities, care for loved ones, start new chapters, and close old ones.
As long as life continues to move forward, Toronto’s real estate market will move forward with it.
Thinking About Your Next Move?
Whether you’re welcoming a new baby, helping an aging parent, relocating for work, navigating separation, or simply considering what’s next, real estate decisions are rarely just about the market.
They’re about life.
At Fox Marin, we believe the best real estate decisions come from combining market knowledge with a clear understanding of your goals, circumstances, and long-term plans. Every situation is unique, and every client deserves advice tailored to their needs.
If you’re considering buying, selling, investing, or simply exploring your options, we’d be happy to have a conversation.
To learn more about how we work, explore our Seller Experience, or meet the Team behind Fox Marin.
Frequently Asked Questions About Why People Move in Toronto
WHAT IS THE MOST COMMON REASON PEOPLE MOVE TO TORONTO?
Growing families remain one of the biggest drivers of housing moves. Many condo owners eventually need additional space as children arrive and household needs evolve.
DO PEOPLE STILL BUY HOMES WHEN INTEREST RATES ARE HIGH?
Yes. While higher rates impact affordability, major life events such as marriage, divorce, job relocation, inheritance, and family growth continue to drive housing decisions regardless of market conditions.
ARE TORONTO HOMEOWNERS DOWNSIZING?
Less than many expected. Many older homeowners are living longer and choosing to age in place rather than sell and move into condominiums or retirement residences.
HOW IMPORTANT ARE SCHOOL DISTRICTS WHEN BUYING A HOME?
School catchments can greatly affect both quality of life and future resale value. Many families specifically target neighbourhoods with highly regarded public schools.
IS THE BANK OF MOM & DAD BECOMING MORE COMMON?
Yes. Family assistance through gifted down payments, co-signing, inheritance, and equity transfers plays an increasingly important role in helping first-time buyers enter Toronto’s housing market.
WHY ARE MULTI-GENERATIONAL HOMES BECOMING MORE POPULAR?
Many families are choosing to live closer together to support aging parents, reduce caregiving costs, create housing flexibility, and help younger generations navigate affordability challenges.
WILL BABY BOOMERS CREATE A WAVE OF HOUSING INVENTORY?
Not necessarily. Many older homeowners are choosing to remain in their homes longer, while others are passing properties directly to family members rather than selling them on the open market.
Stay Ahead of the Market
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(*Source: Jan. 1, 2018 – Sept 1, 2025, RE Stats Inc. & Exclusive)
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This article was written by Ralph Fox, Broker of Record and Managing Partner here at Fox Marin Associates. Ralph is a Torontonian native who recognized from an early age that the most successful people in life apply long-term thinking to their investments, relationships, and life goals. It’s this philosophy, along with his lifelong entrepreneurial drive and exceptional business instincts, that help to establish Ralph as a top agent in the real estate market in downtown Toronto.
