OUTLOOK 2025
Why this could be the year of the turnaround
INSIDE : TOP 4 DECOR TRENDS FOR 2025
WHAT DO NEW MORTGAGE RULES MEAN FOR YOU?
2025 MUST BE THE YEAR
WAYNE KARL EDITOR-IN-CHIEF
Condo Life Magazine
EMAIL: wayne.karl@nexthome.ca
TWITTER: @WayneKarl
To say that 2025 is an important year would be a severe understatement. Important to housing markets across Ontario and particularly in the Greater Toronto and Hamilton Area, to homebuyers, builders and pretty much everyone else involved in the housing industry.
But if there’s one group that ought to understand this message the most, it’s government. Of every stripe. Federal, provincial and municipal. Notwithstanding a leadership change in Ottawa and talk of an early election in Ontario, politicians better be paying attention.
“The current system is broken.” This is among the strong comments in our Outlook 2025 Special Report on page 12. It comes from Richard Lyall, president of the Residential Construction Council of Ontario. He’s underlining the importance that “the grossly inflated, regressive and frankly serious taxes fees and levies on new housing at all levels of government are cut. Plus, a major streaming of the development approvals process is finally imposed. Housing targets absent these measures have no chance of being hit. I think this reality is finally hitting home and will force policy makers to act decisively.”
There are other zingers in our Outlook and elsewhere in this, our first issue of 2025.
“Government taxes, fees and charges, such as DCs, have contributed to a ‘cost to build’ crisis that has undermined the financial viability of new home construction, is stalling residential development and threatening future housing supply across the metropolitan area,” says Dave Wilkes, CEO of the Building Industry and Land Development Association. “As Toronto, higher orders of government and the industry struggle to address this pressing challenge, it is clear that a fact-based discussion is needed to understand how the fees increased stratospherically and how they impact the cost of new housing. Now is the time to address these spiraling costs.”
Thankfully, some governments are paying attention, notably the City of Vaughan, which recently moved to drastically lower development charges. And others parties that are trying to influence action, such as Ontario Liberal leader Bonnie Crombie, who proposes to scrap DCs altogether.
Homebuyers needn’t have degrees in political science or urban planning, or even a keen interest in housing policy, to be able to plan and execute their new home purchase.
But the fact is these topics matter, increasingly so. Educating yourself on these influential issues is part of the important information gathering that helps you make informed homebuying decisions.
We hope 2025 truly is your year. It’s also the year that policy makers must get their act – or Acts – together.
PERSONAL FINANCE | JESSE ABRAMS
Jesse Abrams is Co-Founder at Homewise, a mortgage advisory and brokerage firm based in Toronto. thinkhomewise.com
WESTERN VIEW | MIKE COLLINS-WILLIAMS
Mike Collins-Williams, RPP, MCIP, is CEO West End Home Builders’ Association. westendhba.ca.
HOME REALTY | DEBBIE COSIC
Debbie Cosic is CEO and founder of In2ition Realty. She has overseen the sale of more than $15 billion worth of real estate. With Debbie at its helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. in2ition.ca
REAL ESTATE PRO | BARBARA LAWLOR
Barbara Lawlor is President and CEO of Baker Real Estate Inc., and an indemand columnist and speaker. A member of the Baker team since 1993, Barbara oversees the marketing and sale of condo developments in Canada and overseas. baker-re.com
DECOR | LINDA MAZUR
Linda Mazur is an award-winning designer and Principal of Linda Mazur Design Group. With almost two decades of experience this in demand multi-disciplinary design firm is known for creating relaxed, stylish spaces and full-scale design builds throughout the GTA and Canada. lindamazurdesign.com @LindaMazurGroup
MARKET EXPERTISE | LIANNE MCOUAT
Lianne McOuat is Vice-President, Strategy, at McOuat Partnership, with builder/developer clients including in lowrise, midrise, highrise, masterplanned, adult lifestyle, resort/recreational, retirement, commercial, industrial and multi-family leasing. mcouatpartnership.com.
TRREB REPORT | JENNIFER PEARCE
Jennifer Pearce, TRREB President, is a Broker and Owner with ReMax Rouge River Realty Ltd., a family owned and operated brokerage. She is a secondgeneration realtor and has been licensed since 2000. trreb.ca
LEGALLY SPEAKING | JAYSON SCHWARZ
Jayson Schwarz LL.M. is a Toronto real estate lawyer and partner in the law firm Schwarz Law LLP. He can be reached by visiting schwarzlaw.ca or by email at info@schwarzlaw.ca or phone at 416.486.2040.
BILD REPORT | DAVE WILKES
Dave Wilkes is president and CEO of the Building Industry and Land Development Association (BILD), the voice of the home building, land development and professional renovation industry in the GTA. For the latest industry news and new home data, follow BILD on Twitter at @bildgta or visit bildgta.ca
SENIOR VICE-PRESIDENT, SALES, NEXTHOME Hope McLarnon 416.708.7987 hope.mclarnon@nexthome.ca
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EDITORIAL DIRECTOR Amanda Pereira
EDITOR-IN-CHIEF – GREATER TORONTO AREA
Wayne Karl wayne.karl@nexthome.ca
CONTRIBUTORS
Jesse Abrams, Mike Collins-Williams, Debbie Cosic, Barbara Lawlor, Linda Mazur, Lianne McOuat, Ben Myers, Jennifer Pearce, Jayson Schwarz, Dave Wilkes
EXECUTIVE MEDIA CONSULTANTS Jacky Hill, Michael Rosset
VICE-PRESIDENT, MARKETING – GTA Leanne Speers
MANAGER CUSTOMER SALES/SERVICE
Marilyn Watling
SALES & MARKETING CO-ORDINATOR
Gary Chilvers
BUSINESS DEVELOPMENT MANAGER Josh Rosset
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HOUSING MARKET GETS MORE AFFORDABLE IN 2024 WITH LOWER RATES AND PRICES
The Greater Toronto Area (GTA) housing market experienced a transitionary year in 2024, with annual sales up slightly compared to 2023, and new listings up significantly year-over-year, according to the Toronto Regional Real Estate Board (TRREB).
Buyers benefited from substantial negotiating power on price, especially in the condominium market. Average selling prices in 2024 dipped in comparison to 2023 as a result.
“Borrowing costs were top of mind for homebuyers in 2024,” says incoming TRREB President Elechia Barry-Sproule. “High interest rates presented significant affordability hurdles and kept home sales well below the norm. The housing market did benefit from substantial Bank of Canada rate cuts in the second half of the year, including two large back-to-back reductions. All else being equal, further rate cuts in 2025 and home prices remaining below their historic peaks should result in improved market conditions over the next 12 months.”
Annual 2024 home sales amounted to 67,610 – up by 2.6 per cent from 65,877 sales in 2023. New listings, at 166,121, were up by a greater annual rate of 16.4 per cent. Listings increasing by a greater rate than sales provided buyers with considerable
choice in the marketplace, which effectively kept a ceiling on any widespread price growth.
The average selling price for all home types combined was $1.11 million in 2024, representing a decline of less than one per cent compared to the 2023 average of $1.12 million. Market conditions were tighter for ground-oriented housing and selling prices held up better in these segments as a result. Price declines were more notable for condo units.
“Market conditions varied by market segment in 2024,” says TRREB Chief Market Analyst Jason Mercer. “Sales of single-family homes, including detached houses, increased last year, whereas condo apartment sales were down. Many would-be first-time buyers remained on the sidelines, anticipating more interest rate relief in 2025. The lack of first-time buyers impacted the less-expensive
condo segment more so than the single-family segments.”
“Consumer sentiment, monetary policy, development policy and issues such as congestion continued to impact the resale, new and rental housing markets in 2024,” adds TRREB CEO John DiMichele.
“Government policies on these fronts need to be reviewed in 2025. TRREB is providing in-depth coverage on all of these topics in our highly anticipated Market Outlook and Year in Review report to be released at the beginning of February.”
GTA home sales in December 2024 amounted to 3,359 – down slightly from December 2023. New listings were up over the same period, continuing the trend of a wellsupplied market. The MLS Home Price Index Composite Benchmark was up by less than one per cent year-overyear in December. Over the same period, the average price, at $1.06 million, edged lower.
DOWNSVIEW REDEVELOPMENT TAKES ANOTHER BIG STEP WITH ARBO FROM CANADA LANDS
Redevelopment of the Downsview area of Toronto got another shot in the arm recently, when Canada Lands Co. received approval for the Draft Plan of Subdivision for Phase 1 of Arbo.
Approval of the Draft Plan for Phase 1 of Arbo at Downsview (formerly known as William Baker) is a crucial step in making the future neighbourhood a reality. The approval is needed to divide what has historically been a single large piece of property into parcels for development and public amenities. With approval in place, Canada Lands moves one step closer to receiving all necessary municipal approvals to be able to sell or lease the development lands to builders that can bring this project to life.
Arbo at Downsview is intended to be a vibrant transit-oriented community with a mix of housing and set a precedent for thoughtful urban development. The future neighbourhood will feature an existing, significant natural heritage woodlot and a new ecological park at its core.
Arbo’s Phase 1 is a multi-block, 1,400-unit mixed-use community at Sheppard Avenue West and Keele Street with a minimum of 20 per cent of affordable housing units included. Almost 20 acres of land is being provided by Canada Lands to the City of Toronto for the woodlot and new parks. There will be a mix of residential and non-residential uses (such as commercial, retail and senior amenities). A new east-west street will serve the Phase 1 blocks, which will run between Keele and Sheppard.
Arbo is being developed in multiple phases. Phase 1 includes three development blocks (Block 1, Block 3A and Block 3B). The approved District Plan provides for approximately 1,400 residential units in Phase 1.
Upon approval of the Draft Plan of Subdivision for Phase 1, Canada Lands will begin working through the conditions of the Draft Plan
of subdivision approval, including detailed engineering design of the public elements starting in 2025. This will conclude with subdivision registration, which will finalize the blocks created by the Draft Plan approval and allow for transfer of ownership to the City and future builder partners.
In fall 2024, Canada Lands announced plans for another major project at Downsview –Downsview West, one of the largest transit-oriented communities in Toronto’s history.
Canada Lands has submitted its Downsview West District Plan application, proposing a transformational development with about 8,800 homes for approximately 17,000 residents, including 20 per cent affordable housing, new parks and commercial spaces.
“A complete community built for families, climate resilience, transportation, jobs and amenities, the Downsview West District Plan is the result of robust engagement and our deep ambition to deliver more housing with affordability and diversity in mind,” says Stephan Dery, president and CEO of Canada Lands. “We look forward to continued collaboration with residents, builders, Indigenous communities and the
City of Toronto to deliver on a neighbourhood that will transform the area for generations to come.” Approximately 40 per cent of homes are designed to be two and three-bedrooms units, catering to diverse households, including families. Most residents will live within a five-minute walk from higher-order public transit, supporting the goal of having 75 per cent of trips taken by walking, cycling and transit. The community also features more than one kilometre of off-street pedestrian and cycling paths, encompasses approximately 3.8 hectares (9.3 acres) of parks and open spaces, exceeding the municipal Planning Act requirements and providing spaces for gathering, recreation, tree canopy and rainwater retention. The One Stop
Shop for Builder Storytelling
GUPTA GROUP CELEBRATES GROUNDBREAKING OF YONGE CITY SQUARE
The Gupta Group recently broke ground on Yonge City Square, one of the largest new residential projects to begin construction in 2024 in the GTA and the first new development in the Hoggs Hollow neighbourhood in more than 20 years. The event, held at the project’s site of 4050 Yonge St., marked a significant step in addressing Ontario’s housing needs, with Premier Doug Ford and The Gupta Group leadership celebrating the development.
The Gupta Group says its decision to move forward with construction
ahead of schedule demonstrates its commitment to delivering 700 new homes to the city. Dr. Steve Gupta, founder and chairman of The Gupta Group, reflected on the broader impact of the project, saying, “Today’s groundbreaking represents not only the beginning of Yonge City Square, but also a testament to Toronto’s growth and resilience. This development will transform the Hoggs Hollow neighbourhood and inject vitality into the local economy.”
Yonge City Square will feature two highrises at 32 and 14 storeys, boasting more than 700 suites, ground-level retail, commercial space and 36,000 sq. ft. of resort-inspired amenities. Backing onto the Don Valley Golf Course, the development is directly connected to the York Mills subway station, offering residents unparalleled convenience and connectivity. Amenities include an expansive ninth-floor terrace, a fitness centre with state-of-the-art facilities, entertainment lounges with golf simulators, an outdoor mini-put golf course and a luxurious outdoor pool.
For every unit sold, The Gupta Group will donate $1,000 to the Princess Margaret Cancer Foundation, with a commitment to top off the donation at $1 million upon the final closing of all units. “This is more than just a project for us,” says Reetu Gupta, CEO of The Gupta Family Foundation and Ambassadress of The Gupta Group. “It’s a way to give back to the community while building for the future.”
“Yonge City Square is a reflection of our belief in Toronto’s potential as a world-class city,” adds Dr. Steve Gupta. “It’s about creating homes, opportunities and communities that elevate the way people live and connect. We are proud to play a role in shaping the future of our city and the province of Ontario.”
Occupancy for Yonge City Square is expected in spring 2028, marking the beginning of a new chapter for Hoggs Hollow.
Left to right, Reema Balaram, Rashmi Gupta, Dr. Steve Gupta, Ontario Premier Doug Ford, Reetu Gupta, and Suraj Gupta.
PHOTO: GEORGE PIMENTEL
TRANSIT-ORIENTED DEVELOPMENT
Downsview West – transit-oriented development set to transform community Transit-centric development, master-planned communities, mixed-use developments… these are the types of housing you’re going to be hearing a lot more about in futures. Case in point, the massive, transformational project Downsview West, by Canada Lands – one of the largest transit-oriented communities in Toronto’s history..
HOUSING MARKET
A clear and welcomed signal
The Bank of Canada’s fourth consecutive interest rate reduction on Oct. 23 was just the news that many prospective new-home buyers – not to mention some builders and marketers – had been waiting for. Not only was it welcomed news, it’s also a clear signal of what’s to come.
SKILLED TRADES
Women in industry – equality and diversity in construction
The West End Home Builders’ Association has an ongoing commitment to promote gender equality and inclusion in the construction industry through various initiatives, reflecting the growing recognition of women’s contributions across all sectors.
INTEREST RATES
Interest rate reductions expected to boost market
With every cut to the overnight lending rate, more homebuyers are expected to come off the sidelines. In turn, rising demand will cause home prices to increase more rapidly, eliminating the advantages of lower borrowing costs. As a result, an early spring market could be in the cards.
NEW COMMUNITY
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WHY THIS COULD BE
THE YEAR OF THE TURNAROUND
At time of writing – quite literally –our prime minister was resigning, a respected federal housing minister had recently announced he wouldn’t seek re-election, and all kinds of other agenda items remained on the provincial and municipal housing files.
All this activity, then, seems quite fitting for a report that examines the outlook for the upcoming year. There already were enough matters for would-be homebuyers to think about: New home supply, interest rates, inflation and the economy. We didn’t need federal politics, as it pertains to housing policy, added to the list, but here we are.
Let’s come back to this, though, for even on this topic, there are some good reasons homebuyers can feel positive about 2025, and for the market in general to embrace it as the year of the turnaround.
Several factors are swinging back in the market’s favour.
by WAYNE KARL
THE INCREASING IMPACT OF DECLINING INTEREST RATES
The Bank of Canada reduced its policy rate five times last year, the most recent being by 50 basis points on Dec. 11, following a similar 50-basis-point reduction on Oct. 23. The rate now sits at 3.25 per cent, and most experts predict more cuts in 2025.
“The December rate drop may not immediately ignite the market, but it is likely to shift sentiment, creating a more favourable environment for the spring market, which typically begins around March,” Jesse Abrams, co-founder at Homewise, a mortgage advisory and brokerage firm, told Condo Life. “Further rate decreases anticipated in early 2025 could also help as the Canadian economy works to regain momentum.”
BoC’s reductions have been helpful and are likely to stimulate the Greater Toronto and Hamilton housing market in the short term by increasing
buyer affordability, adds Mike CollinsWilliams, CEO of the West End Home Builders’ Association (WEHBA). “As we move through 2025, sustained lower rates will assist to stabilize market, prompting recovery and growth in both sales and new construction activity across the region.”
2025 RATE ANNOUNCEMENTS
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Debbie Cosic, CEO and founder of In2ition Realty, agrees, but says lower rates are just a start.
“It is a clear signal that we are moving in the right direction, offering much-needed relief for borrowers, and a glimmer of hope for a recovering
real estate market in 2025,” she says. “Lower interest rates will provide breathing room for homeowners and prospective buyers, fostering renewed activity in the housing market.
“Every little bit helps in the fight to restore the marketplace to a balanced state, but it’s still far from enough,” she told Condo Life “We need governments to step in and banks to step up. Extended amortization rates are essential to tackle the affordability crisis we’re facing. Why is it that commercial loans in Canada can secure 50-year amortizations through CMHC-insured funds, yet this option isn’t extended to the residential market, where it’s so desperately needed?”
She also says the government needs to implement a true five-percent down payment program for first-time buyers – one that allows them to purchase in any marketplace, including pre-construction homes. “The government could bond the additional 15 per cent required for preconstruction purchases and guarantee it to developers, so it counts toward their preconstruction sales tallies.”
Simply put, Collins-Wiliams adds, achieving middle-class housing affordability is impossible with the current tax burden on new housing. “All levels of government need to come to the table and work with industry to drastically reduce taxes, fees and charges on new housing.”
And this brings us to…
THE HEIGHTENED IMPORTANCE OF HOUSING POLICY
Putting aside any uncertainty from Trudeau’s Jan. 6 resignation, housing policy is a hot topic in Canada, and certainly in the GTHA and elsewhere in Ontario. Homebuyers, builders, lenders and industry associations all have a stake in this important matter. And it’s up to government – federal, provincial and municipal – to truly understand the issues and address them with meaningful and effective measures.
From the “promises, promises” department, two important initiatives were suggested recently – though by opposition parties.
In the fall, the federal Conservatives tabled a proposal to remove the GST on new homes with a purchase price of less than $1 million. WEHBA and Canadian Home Builders’ Association (CHBA) say they have been advocating for years with all major parties for a change to GST thresholds, and are encouraged that such initiatives would address what has been a major contributor to housing affordability challenges.
“The GST thresholds haven’t changed since the introduction of the GST in 1991,” says CHBA CEO Kevin Lee. “Since then, house prices have more than doubled. Removing the GST on new homes will help improve affordability and enable more supply.”
Removing the GST for new homes purchased for less than $1 million may be “the most significant housing policy commitment made in the past two decades,” says CollinsWilliams. “(It) shows leadership to cut crippling levels of taxation on new housing, puts money directly back into the pockets of Canadians while combatting the housing crisis.”
The other important recent initiative came at the provincial level, from Bonnie Crombie, leader of the Ontario Liberals. On Dec. 11, Crombie announced More Homes You Can Afford, a plan to make buying or renting a home more affordable. The measures would help young people buy their first home, seniors downsize and drive economic prosperity.
Among other benefits, Crombie says, the plan would:
Eliminate the provincial land transfer tax: For first-time homebuyers and seniors downsizing – saving families and seniors on average $13,500 off the cost of a new home.
Scrap development charges: On new middle-class housing, which can add up to $170,000 on the price of a new home, and replace them with the Better Communities Fund to ensure that the province invests in and benefits from sustainable municipal growth.
“The More Homes You Can Afford plan will save real people up to $170,000 on the cost of a new home,
make rent more affordable, and get more homes and communities built by cutting the taxes that are making homes more expensive,” she says.
Like the federal Conservative proposal, Crombie’s plan is just an idea at the moment, not a policy by a government that can actually implement it. But it’s getting huge support.
“The plan focuses on key population groups, including firsttime homebuyers, seniors looking to downsize, and people looking to rent a home they can afford,” the Ontario Home Builders’ Association (OHBA) says.
Richard Lyall, president of the Residential Construction Council of Ontario (RESCON), is even more direct.
“It’s a bold move and the right call,” he told Condo Life. “(Development charges) have exploded in the last decade. A 1,000-per-cent increase. Incomes have been left in the dust and housing affordability has been crushed. No other jurisdiction does this. The growth has been a runaway train.”
Adds Collins-Williams: “The Ontario Liberal Party proposal recognizes that development charges have reached unsustainable levels and have become a huge cost driver of higher housing prices. The plan put forward by Bonnie Crombie appears to represent a good step forward in making housing more affordable.”
For their part, municipalities are beginning to take action on their own.
VAUGHAN SHOWS LEADERSHIP ON DEVELOPMENT CHARGES
More locally, the issue of development charges and other fees is an issue that, as Building Industry and Land Development Association (BILD) President and CEO Dave Wilkes explains in his column on page 34, must be addressed.
New homes are subject to a multitude of fees and charges collected by the municipality, such as DCs and other fees that amount to burdensome costs for new-home buyers.
Some good news on this front came in November 2024 when the City of Vaughan adopted a plan to bring these costs down. Mayor Steven Del Duca and council approved reductions to the City’s development charges, which have been among the highest in the GTA.
“Development charges have become an unfair tax burden on homebuyers,” Del Duca says. “Too many of our residents, in particular young families in our community, have seen their dream of buying a home close to where they grew up, disappear completely as housing prices have spiraled out of control. We have a housing affordability crisis, and it’s time for us to get real about the solutions needed to solve it. (This) decision by Vaughan Council to dramatically reduce our development charges for the foreseeable future is a strong step in the right direction. I urge other municipalities to follow our lead and do the right thing.”
Wilkes and others applaud the move. “BILD recognizes and commends Mayor Del Duca and the City of Vaughan for taking bold action to address housing supply and the cost to build by lowering development charges,” he says. “This will enhance the financial viability of future projects, unlocking potential investment and stimulating supply.”
Adds Cosic, “Other municipalities need to follow Vaughan’s lead by reducing development fees and charges, ensuring these savings are passed directly to purchasers.”
Such actions to reduce costs to build and buy are among what Lyall
is most hopeful for in 2025. “That the grossly inflated, regressive and frankly serious taxes fees and levies on new housing at all levels of government are cut. Plus, a major streaming of the development approvals process is finally imposed. The current system is broken. Housing targets absent these measures have no chance of being hit. I think this reality is finally hitting home and will force policy makers to act decisively.”
WELL PREPARED BUILDERS ARE READY
Facing a market with fundamental challenges, well prepared builders are more than ready for the 2025 turnaround. And for patient and informed homebuyers, there are plenty of opportunities in both highand lowrise homes.
“I think 2025 is heading in the right direction,” says Kelly Anderson, sales and marketing manager at Silvergate Homes. “With interest rates on a steady decline, this should add confidence back into the minds of buyers.
“There is a lot of demand out there for housing – new buyers, downsizers, right-sizers – they all want to purchase and are just waiting for the right time. The right time for a lot of these people might be spring – so builders should gear up and get ready for a busy market. There are a lot of builders out there with fabulous projects, so buyers should see some excellent options. That, mixed with lower rates, should spice things up for 2025.”
“I believe 2025 will bring healthier sales volume compared to recent years, but the recovery will be
gradual, allowing time for buyer confidence to rebuild,” adds Richard Mariani, sales and marketing manager of CountryWide Homes.
“Interest rates are continuing to trend in the right direction, but it. might still take some time before we gain large-scale momentum. I always advise potential buyers to act now because when the tides do turn, changes can happen rapidly. Before you know it, the pendulum swings back to a sellers’ market, with limited new construction available in top GTA communities.”
MORTGAGE REFORM AND THE POWER OF FIRST-TIME BUYERS
In September 2024, the federal government announced bold mortgage reforms to address housing affordability and make homeownership more affordable for more Canadians.
The changes included:
• IIncreasing the $1-million price cap for insured mortgages to $1.5 million, to reflect current housing market realities and help more Canadians qualify for a mortgage with a down payment of less than 20 per cent.
• Expanding eligibility for 30-year mortgage amortizations to all first-time homebuyers and to all buyers of new builds. By helping Canadians buy new builds, including condos, the government is announcing another measure to incentivize more new home construction and tackle the housing shortage. This builds on the Budget 2024 commitment permitting 30-year mortgage amortizations for first-time homebuyers purchasing new builds, including condos.
“These new measures aim to make the Canadian housing market more accessible for first-time buyers,” Abrams writes in his column on page 24 breaking down the new rules.
“While there are considerations to weigh, they offer an opportunity to take a significant step toward owning your dream home.”
URBANIST RICHARD FLORIDA A CONVERSATION WITH
I recently had the opportunity to interview urbanist Richard Florida on my Toronto Under Construction podcast. While this discussion delved into urbanism and gentrification, it also offered new-home buyers a unique lens to understand the city’s potential and the key issues shaping its development. Florida is the author of TheRiseoftheCreativeClass , which focuses on how the “clustering force” of young creatives and tech workers in metropolitan areas led to greater economic prosperity. He’s also on the faculty of the University of Toronto and a former senior editor at TheAtlantic
As a native of New Jersey, Florida has had a different perspective on Toronto, arriving here as an expat in 2007 with his wife from Washington, DC. In his opinion, Toronto’s growth has been nothing short of extraordinary. As he puts it, the city has become a global hub for innovation and creativity, from its vibrant neighbourhoods to its diverse cultural scene. However, in noting this, he does observe issues as well. “Toronto is one of the world’s most remarkable cities – its diversity, talent and creativity are unmatched.”
Seeing the city with the fresh eye of a newcomer, he could see its potential, and it drew to the namesake of his most famous work, the creative class. He calls the creative class “the
engine of urban economic growth,” which is evident in its thriving arts, tech and entrepreneurial sectors. To Florida, they can choose amongst so many locales: The charm of Kensington Market or the familyfriendly vibes of Leslieville. Toronto’s neighbourhoods offer something for everyone. The creative class brings a dynamic quality that draws more of itself. However, this surge in popularity, especially among those with youth and talent, causes housing prices to rise. He noted that to remain competitive, Toronto must address affordability and infrastructure challenges head-on. “The very things that make Toronto attractive – its culture, diversity and talent – are at risk if younger generations can’t see a future here.”
Despite these legitimate concerns, Florida remains a steadfast advocate for this city, believing a city full of promise for new-home buyers. Its vibrant culture, world-class amenities and strong job market make it a magnet for talent from around the globe. “Toronto’s brand is its openness and diversity. That’s its superpower.” He further notes that for those exploring new home options, the city’s ongoing investments in transit, including the Crosstown LRT and expanded bike lane networks, signal a shift toward more sustainable urban living. There is a push towards acceptance and embracing higher density and spaces where cars aren’t as prevalent.
Toronto’s skyline continues to evolve with ambitious projects reshaping its urban landscape. For example, the revitalization of Ontario
Place promises to blend public and private investment to transform the waterfront into a vibrant destination. Despite some controversy, Florida believes such projects are vital: “These developments inject life into the city and create spaces where people want to live, work and play.” He notes, however, that while innovative projects are critical, we must remember the unique tapestry of this city that brought us here. Places such as Kensington Market, which are challenged economically and by the forces of economic change. “It’s about balance,” says Florida. “We need to meet the housing needs of a growing population while respecting the cultural fabric of these communities.”
Ultimately, it’s nice to see, even through the eyes of a newcomer, the force this city has. Although there have been recent challenges, there is faith that the creative class has chosen a city such as Toronto, and perhaps that is why prices have risen in part. They will do anything they can to stay. Toronto needs them, and they need Toronto.
Ben Myers is the President of Bullpen Consulting, a boutique residential real estate advisory firm specializing in condominium and rental apartment market studies, forecasts and valuations for developers, lenders and land owners. Contact him at bullpenconsulting.ca and @benmyers29 on Twitter.
BEN MYERS
HOMEOWNERS ON A RELIABLE PATH
TO WEALTH-BUILDING
BARBARA LAWLOR
One of the many reasons homeownership is the dream of most Canadians is its contribution to wealth-building. At the end of October, Statistics Canada released new results of the 2023 cycle of the Survey of Financial Security (SFS) Here are a few of the findings.
• Canadians aged 55 to 64 who own a principal residence and have an employer-sponsored pension plan had a median net worth of approximately $1.4 million more than those who have neither. Renters in that age group with no employer pension had a median net worth of just $11,900.
• Families who had an employer pension plan, but who did not own their principal residence, had a median net worth of $359,000. Those who owned their principal residence but did not have an employer-sponsored pension plan had a median net worth of $914,000. Quite a difference.
• Usually, families build up their assets and reduce debts during their working years, then use their assets during their retirement years. Those who have low net worth might need to work into their retirement years, require more government support, or even have a greater risk of poverty.
• Even the youngest homeowners had a net worth measuring more than 10 times that of renters. The lowest net worth members of this group were those who did not have an employer pension or own a principal residence.
• For those who owned homes in 2023 where the highest income earner was 35 to 44 years of age, the median net worth was more than 10 times that of renters ($673,000 versus $61,200). Those between the ages of 45 and 54 had a median net worth of $972,200 versus $50,800 for renters.
• As so many young people are priced out of the homeownership market nowadays, they are looking around for other avenues to amassing wealth, such as RRSPs and Tax-Free Savings Accounts.
In addition to all of this, Canadians who purchase homes enable other opportunities that help them build wealth. For example, we have a GST/ HST rebate for those who buy a new home. First-time buyers in Ontario may qualify for a Land Transfer Tax Rebate. The Home Buyers’ Plan enables people to withdraw from their RRSPs to build or buy a qualifying home. Budget 2024 raised the limit from $35,000 to $60,000 (some conditions apply).
For many Canadians, owning a home is more than a potential wealth builder; it brings with it a sense of
putting down roots, of belonging. It is also a tangible asset, as opposed to stocks and bonds, which are difficult to understand. People can touch, see and live in their homes. They understand the real estate practices of buying and selling. And when you consider appreciation over time, real estate ownership is historically lucrative.
Over the years, and for many generations, homeownership has been a big part of amassing assets that increase families’ and individuals’ net worth. When considering how to build wealth yourself, remember that owning a home(s) is investing in your future in more ways than one. So, stop dreaming and make it happen.
Barbara Lawlor is CEO of Baker Real Estate Inc. A member of the Baker team since 1993, she oversees the marketing and sales of new home and condominium developments in the GTA, Vancouver, Calgary and Montreal, and internationally in Shanghai. baker-re.com
M City, by Rogers Real Estate Development Ltd. and Urban Capital
THINGS TO CONSIDER
AS WE HEAD INTO 2025
JAYSON SCHWARZ, LLM
The beginning of a new year is a natural checkpoint to take stock of some of life’s important issues, so there is no better time to remind you to stop putting off our estate planning. Making a Will is actually much easier and less complicated than it may seem when you work with an experienced lawyer.
With families now coming in so many different shapes and sizes, your lawyer can help your blended family answer important questions, such as reviewing your obligations to legal spouses, ex-spouses, separated spouses and common law spouses. They can also advise you with respect to obligations for your children and stepchildren, which may help avoid future conflicts.
If you have loved ones with disabilities, it’s especially important to plan for their unique needs. As we plan for the future after we are gone, a critical issue is the appointment of those who will administer our estates. Who will be in charge? The responsibility for distributing your assets in accordance with your wishes or administering the distribution of income and capital from a trust are serious considerations. Speak to your accountant and lawyer, and have open discussions with your family to achieve the best result.
Today, many people also have family and assets spread out in different jurisdictions around the world. Now is the time to plan what happens to your bank accounts or real estate holdings
in other countries. Importantly for your beneficiaries, it’s also crucial to plan for tax burdens, as these vary significantly depending on the locations of the assets or beneficiaries. Tax planning to recognize whether there is a Tax Treaty or not; whether there will be double taxation and other considerations, mean you need to consult with your professional advisors to figure this out in advance and not leave problems after you are gone.
Let us not forget that when you are having your Will made, you also need Powers of Attorney (POA). What is this? A lot of people wrongly refer to them as Living Wills. What a POA does is puts someone in charge, in case you are no longer capable of running your affairs or looking after yourself. We never know when something might happen. and then it’s too late to provide. This is very important to protect yourself and those you love from the insecurity of not knowing who has to make the hard choices.
Importantly, there are two POAs –one is for property of all kinds and the other for personal health. You need you bills paid and someone to make life decisions. Don’t wait.
As we enter 2025, we also need to keep an eye on interest rates. So many Canadians are out of work and U.S. President Elect Trump is threatening crippling tariffs. This means interest rates should drop further to stimulate the economy. If you have the financial ability, start looking for the right opportunity to purchase a home, or even better, to get into the market at this time with a condo – that you always wanted. Pre-qualify for a mortgage, and as rates drop, keep getting reviewed; find the right agent and lawyer – and be prepared.
Cheers to a healthy 2025.
Jayson Schwarz LL.M. is a Toronto real estate lawyer and partner in the law firm Schwarz Law Partners LLP. Visit online at schwarzlaw.ca or email info@schwarzlaw.ca with your questions, concerns, critiques and quandaries.
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KEY INNOVATIONS TRANSFORMING
NEW DEVELOPMENT SALES
The property technology (PropTech) landscape is transforming how buyers and realtors engage with new developments as developers are investing in tools to make the sales process faster, more transparent and highly immersive. These powerful tools allow them to connect with buyers and streamline sales for the realtors. Here’s a look at the top tools driving the new development market forward.
DIGITAL SALES PLATFORMS FOR BUYER ENGAGEMENT
As more buyers prefer mobilefirst interactions, developers are adopting mobile platforms to enhance communication and facilitate a smooth sales journey. These platforms allow sales teams to connect directly with buyers via their smartphones, providing real-time updates, project information and sales collateral. With integrated messaging and scheduling features, buyers can book appointments, ask questions and receive updates on project milestones all in one place. From the launch of a project to the sale of a unit, a sales platform such as Blackline provides a seamless experience to keep potential buyers engaged and informed, increasing satisfaction and reducing the time to complete a sale.
IMMERSIVE TECHNOLOGIES IN SALES GALLERIES
Immersive technologies such as Blackline Realm and Blackline Cast have become a game-changer for
new development sales, allowing potential buyers to explore properties in incredible detail from anywhere in the world. The latest immersive technologies offer fully interactive environments, enabling buyers to walk through a digital representation of a property as if they were physically there. Developers benefit from these platforms by bringing their vision to life while avoiding the cost of building out full model suites and also having the ability to reach a larger group of buyers.
AUGMENTED REALITY FOR STAGING AND CUSTOMIZATION
Augmented reality (AR) is transforming how buyers visualize properties. These AR apps let users overlay furniture, finishes and layouts on spaces in real time. This gives buyers the ability to personalize units, enhancing their connection to the property. Developers and sales teams can showcase options for customization, helping buyers make decisions faster without the cost of physical staging.
AI-DRIVEN INSIGHTS
AI-powered predictive analytics is revolutionizing the way developers and sales teams approach new development projects. Advanced data models now offer insights into buyer behaviour, market demand and pricing trends with great accuracy. For consumers, this means AI tools can assist in presenting properties that align with their specific lifestyle needs and investment goals. Developers and sales teams, on the other hand, are able to use these analytics to make data-driven decisions about project planning, optimal pricing and
marketing, helping to match buyers to properties seamlessly.
As we look ahead to 2025, PropTech will continue to reshape the new development sales landscape with tools that simplify processes and deepen buyer engagement. From immersive sales galleries to AI-driven insights, these innovations empower developers and sales teams to meet the demands of today’s tech-savvy buyers and deliver a more personalized sales experience.
Tim Ng is the Founder and CEO of ADHOC STUDIO and BLACKLINE, pioneering industry-leading digital solutions merging real estate, art and technology to transform the sales experience. To explore ADHOC’s awardwinning renderings and BLACKLINE’s innovative sales platform, visit adhocstudio.ca and blacklineapp.com.
Blackline Realm at Freed Hotel & Residences
A HOME FOR ALL
HOW TO BUILD GOOD WILL WITH YOUR NEW HOME PURCHASE
During occasions such as the recent holiday season, many of us reflect on the warmth and security that comes with having a home – and it’s a feeling that should be universal. But currently we live in a world where more than one billion people – 14 per cent of the global population – live without adequate shelter. At McOuat Partnership, one of the things we are most proud of this past year is our newest partnership with World Housing, an organization that aligns perfectly with our core values and mission by partnering with builders, developers and real estate professionals to transform the most vulnerable communities around the globe with safe, secure housing. And homebuyers are watching.
Because as a homebuyer wouldn’t you prefer to know that your home purchase is also supporting others
and making a genuine impact? Homebuyers have the opportunity to choose builders or realtors who are actively working to make a difference. By purchasing from a builder or realtor who supports World Housing, you can be assured that you are contributing to a cause that puts a roof over families’ heads, with 100 per cent of all public donation dollars going directly to homebuilding, all while fulfilling your own dream of homeownership. That’s why builders and real estate professionals from across Canada are stepping up as ambassadors and benefactors for World Housing. Recognizable names such as Bosa Developments, Sotheby’s International Realty, James Hardie Siding, Koru Pacific, Cook Homes, Zehr Group, MLA Canada, and McEvay Blair Multifamily Group, along with private donors such as Audie and Peter Lenkov, have collectively helped to establish more than 1,000 homes in nine countries, and providing shelter for more than 5,000 individuals.
As you consider how you can make an impact, here are several ways you can give back:
IF YOU ARE A HOMEBUYER:
• Buy from a builder or hire an agent who supports World Housing.
• Make a donation through World Housing’s Give a Home for the Holidays campaign.
IF YOU ARE A DEVELOPER/ REAL ESTATE PROFESSIONAL:
• Become a benefactor, corporate sponsor or agent of change.
• Agents – donate a portion of each sale to build a home in a developing country.
• Sponsor a fundraising event to raise awareness and resources for communities in need.
• Participate in World Housing’s annual “House Party.”
To learn more about how you can get involved and support World Housing’s initiatives, visit worldhousing.org or contact me directly at lianne@partnership.ca. If you are a local builder or real estate professional who wants to make a global impact, contact me and we can start the discussion.
Lianne McOuat is Vice-President, Strategy, at McOuat Partnership, with builder/ developer clients including in lowrise, midrise, highrise, master-planned, adult lifestyle, resort/recreational, retirement, commercial, industrial and multi-family leasing. mcouatpartnership.com.
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LIANNE MCOUAT
November 2024 Ribbon Cutting ceremony with Audie and Peter Lenkov as children and families moved into their new homes in Lenkov Village in Phnom Penh Cambodia.
WHAT TO EXPECT IN THE 2025 REAL ESTATE MARKET
DEBBIE COSIC
Looking ahead to 2025, I see the potential for significant positive shifts in the real estate market. With economic adjustments and targeted government interventions, we may finally begin addressing the affordability crisis while stabilizing the market for buyers and sellers alike.
One of the most promising developments I expect in 2025 is the steady decline of interest rates. This change could provide much-needed relief, reducing borrowing costs and restoring confidence in the housing market. Lower rates have the power to stimulate activity, enabling more people to consider buying a home and boosting the overall health of the market.
I’m hopeful that governments will introduce more concessions to combat housing affordability. A great example is Vaughan’s initiative to reduce development charges, a move that has made new housing more affordable to build. If other municipalities adopt similar measures, we could see widespread benefits. These initiatives could lower construction costs, making
new housing more accessible to buyers while supporting the development industry.
When it comes to inventory, I expect to see product launched within the last 12 to 24 months being offered at discounted prices or heavily incentivized. On the other hand, brand-new inventory hitting the market is unlikely to see the same level of discounts. This dynamic could create opportunities for buyers to find value in slightly older offerings while maintaining demand and pricing stability for fresh developments.
While these changes are promising, I believe we need bold, systemic solutions to truly address the affordability crisis. One key solution I’d like to see implemented is the extension of amortization periods to 40 or even 50 years. This adjustment could significantly reduce carrying costs – by as much as half in some cases – making homeownership much more accessible.
An essential next step is the creation of a genuine first-time buyer program that offers a true five-per-cent down payment option, making homeownership more accessible to buyers. Currently, these five-per-cent down payment deals don’t count toward the builder’s construction financing threshold, but they should. If there
were a government bond to cover the remaining 15 per cent, builders could use it to meet construction thresholds more quickly, accelerating the development of much-needed homes. Existing programs often fall short of meeting the needs of firsttime buyers, and it’s time for more effective solutions to help Canadians achieve homeownership.
As these changes take shape, I’m optimistic about what 2025 could bring. With declining interest rates, government concessions and innovative affordability solutions, we could see a market that is not only more stable but also more inclusive. These steps would go a long way toward making homeownership attainable for more people, helping to create a stronger, healthier real estate market for everyone
Debbie Cosic is CEO and founder of In2ition Realty. She has overseen the sale of more than $15 billion worth of real estate. With Debbie at its helm, In2ition has become one of the fastest-growing and most innovative new home and condo sales companies. in2ition.ca
REMOVING GST FOR NEW HOMES
MAY BE THE MOST SIGNIFICANT HOUSING POLICY COMMITMENT IN TWO DECADES
MIKE COLLINS-WILLIAMS
In a move aimed at tackling Canada’s housing affordability crisis, the Conservative Party of Canada has announced plans to eliminate the GST on new homes priced at less than $1 million. If enacted, this policy could provide significant relief to prospective homebuyers, particularly first-time buyers seeking to enter the housing market.
The Canadian Home Builders’ Association (CHBA), a longtime advocate for reforming GST thresholds, welcomes the announcement. CHBA CEO Kevin Lee highlighted the policy’s potential impact, stating, “The GST thresholds haven’t changed since the introduction of the GST in 1991. Since then, house prices have more than doubled. Removing the GST on new homes will help improve affordability and enable more supply.”
The proposal addresses a longstanding issue: Outdated GST thresholds that have failed to keep pace with the dramatic rise in housing prices over the past three decades. By eliminating this financial barrier, the Conservative Party aims to reduce costs for buyers and stimulate the construction of new homes, ultimately increasing the housing supply.
Removing the GST for new homes purchased for less than $1 million may be the most significant housing
policy commitment in the past two decades. Removing the GST shows leadership to cut crippling levels of taxation on new housing and puts money directly back into the pockets of Canadians while combating the housing crisis.
To fund this initiative, the party has proposed reallocating certain federal infrastructure spending currently tied to municipal commitments for improving housing policies. While this approach may allow for immediate action on GST reform, it has sparked debate over its broader implications. Housing-supportive infrastructure funding is essential for removing barriers to development and enhancing municipal processes that facilitate new housing projects.
Lee emphasizes the importance of a balanced approach, urging the Conservatives to complement this GST reform with additional measures addressing systemic challenges at the municipal level. “Addressing the GST is an important part of what needs to be a comprehensive plan supporting better housing affordability and more supply,” Lee says. “It is also crucial that all federal parties have robust policies surrounding the funding of housing
infrastructure and creating change at the municipal level to address current affordability challenges.”
CHBA’s stance underscores the need for holistic housing strategies that go beyond immediate cost reductions. While the GST removal is a promising start, ensuring adequate funding for critical infrastructure and promoting municipal reform remain vital components of a long-term solution.
As the Conservative Party rolls out its platform, the housing sector and advocacy groups such as CHBA will continue to monitor development and provide recommendations. With housing affordability remaining a top concern for Canadians, comprehensive policies addressing supply, affordability and infrastructure will be key to making homeownership more attainable for all.
Mike Collins-Williams, RPP, MCIP, is CEO West End Home Builders’ Association. westendhba.ca.
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ONTARIO NEEDS
A FAST AND FAIR LANDLORD AND TENANT BOARD
JENNIFER PEARCE
The Ontario Landlord and Tenant Board (LTB) has many challenges. In the middle of a historic rental housing supply shortage, the LTB’s ineffectiveness is hurting tenants and landlords.
We commend the provincial government and Attorney General Doug Downey for recognizing the challenges at the LTB, and applaud their commitment to take action by hiring more adjudicators, improving operational systems and, more recently, by proposing to speed up operations at the LTB as part of the Fall 2024 Red Tape Reduction Package. All these recommendations are supported by TRREB, but further reform is needed to ensure meaningful change. It’s time for reform to the LTB that breaks the backlog of cases and focuses on making the process faster and fairer for consumers.
The LTB is one of the busiest tribunals in the province, receiving more than 80,000 applications annually. Applications to the LTB have a big impact on the financial and general well-being of thousands of tenants and landlords every year. The Tribunal is a critical part of Ontario’s rental housing system protecting both tenants and landlords while keeping cases out of the costly court system.
In May 2023, the Ontario Ombudsman released a longawaited investigation into the Tribunal that detailed structural, operational, and service-related problems. According to the most
recent Tribunals Ontario 2022–23 Annual Report, the backlog of cases at the LTB had grown to 53,000. Furthermore, the Ombudsman investigation found that it is taking an average of seven or eight months –and sometimes up to two years – for a hearing to be scheduled.
What’s driving the backlog? Systemic operational ineffectiveness is one of the major reasons. According to its 2021–22 Annual Report, the Tribunal set a goal of having 80 per cent of eviction applications considered within 25 days. Unfortunately, the Tribunal only meets this target for a fast hearing for landlords to evict problem tenants 0.2 per cent of the time with the average hearing taking almost 75 days just to schedule.
The Ombudsman’s report provided painful details about tenants and landlords who, because of the significant delays, were forced to deal with harassment, criminal behaviour and financial ruin. In many instances, landlords waited months – sometimes years – for a hearing only to have to restart the application process all over again because of errors in their paperwork.
The recent provincial announcements are a great start, and TRREB is encouraging the government to go further by prioritizing three other reforms from our newly released policy report on fixing problems at the LTB called Breaking the Backlog, including:
• Reinstating in-person hearings: Providing multiple options for hearings to accommodate all stakeholders
• Strengthening technological infrastructure: Ensuring that digital platforms used by the LTB are reliable and accessible
• Enforcing stricter timelines: Mandating that hearings and decisions at the LTB are made before the termination date of a tenancy.
“With a major backlog of cases at the LTB, we see an urgent need for meaningful reform that ensures fair and swift resolutions for landlords and tenants alike,” says John DiMichele, TRREB CEO. “Our recommendations are designed to improve access to justice and restore public confidence in the LTB’s operations.
“TRREB has long been a champion of reform at the LTB to make the tribunal more efficient for both rental property owners and tenants,” adds DiMichele. “Thankfully, the provincial government has recognized the challenges at the LTB and has committed to action. We’re proud to be working with Minister Downey and his team on the latest round of reforms to the LTB.”
Ontario is in the middle of a housing affordability crisis, and we need all hands on deck to help families and individuals find safe and affordable homes. Reforming the LTB to make it faster and fairer will go a long way to getting more families and individuals into homes they can afford.
Read the report and TRREB’s recommendations on trreb.ca now.
Jennifer Pearce, TRREB President, is a Broker and Owner with ReMax Rouge River Realty Ltd., a family owned and operated brokerage. She is a secondgeneration realtor and has been licensed since 2000. trreb.ca
UNDERSTANDING THE IMPACT
OF NEW MORTGAGE RULES IN CANADA
JESSE ABRAMS
If you’re a first-time homebuyer in Canada, there’s some big news that could affect your journey into the housing market. Starting next month,
new government policies will extend the amortization period for insured mortgages from 25 years to 30 years. Additionally, the cap on insured mortgages will increase from $1 million to $1.5 million. These changes aim to make homeownership more accessible, particularly for new builds and first-time buyers.
What does this mean for you?
The extended 30-year amortization period offers more time to pay off your mortgage, resulting in reduced monthly payments. This can provide some much-needed breathing room in your monthly budget, allowing you to manage other rising expenses such as groceries and utility bills.
However, there are trade-offs to consider. Lower payments may lead to higher demand for homes, which could potentially drive-up prices. Additionally, stretching payments over a longer period increases the total interest paid on your mortgage, potentially adding up to 20 per cent more over 30 years compared to a 25-year term.
By raising the insured mortgage cap to $1.5 million, more homes in high-demand cities such as Toronto, Vancouver and Calgary may now be within reach. This adjustment significantly lowers the down payment needed to qualify for a home at the new cap. For instance, instead of requiring $300,000 for a
$1.5 million home, the down payment could now be as low as $125,000 –an appealing change for many firsttime buyers.
WHY THESE CHANGES MATTER
Improved
affordability
The combination of lower monthly payments and access to a broader range of properties enhances the sense of affordability for first-time buyers. Keep in mind, though, that rising demand could lead to price increases, which might counteract some of the affordability benefits.
Expanded housing options
With greater financial flexibility, you’ll be able to explore a wider variety
of homes without making as many compromises. This could make it easier to find a property that fits your lifestyle and long-term needs. Better budget management Lower monthly payments can help new homeowners balance their budgets during a critical transition. However, be prepared for potential market fluctuations that could affect home prices and your overall financial plan.
Incentives for new builds
The 30-year amortization specifically for new builds is a noteworthy addition, encouraging investment in newly constructed homes. While this change provides a helpful boost, increasing housing supply remains essential for long-term affordability. Policymakers will need to focus on removing barriers to new construction to make meaningful progress.
What’s next for you?
If you’re planning to buy your first home, now is the perfect time to evaluate your budget. Use these new policies to your advantage by getting pre-approved through a mortgage broker such as ours at Homewise to understand how much you can borrow. Working with an experienced real estate professional can also help you navigate the market and identify properties that fit your criteria. These new measures aim to make the Canadian housing market more accessible for first-time buyers. While there are considerations to weigh, they offer an opportunity to take a significant step toward owning your dream home. If you’d like personalized guidance or have any questions, reach out to us today.
Jesse Abrams is Co-Founder at Homewise, a mortgage advisory and brokerage firm. thinkhomewise.com
TOP 4 HOME DECOR TRENDS FOR 2025
With the start of the new year, many of us are looking to see what’s new and exciting in design, and the 2025 trends will not disappoint. The year ahead is all about embracing colours, combining style with functionality, sustainability and wellness. It’s about redefining what luxury is in your home and about incorporating earthy elements in your designs.
Colour your world
Bold saturated colours are making a comeback this year. We will see warm browns, rich earthy reds, deep daring blues, as well as deeply saturated jewel-tones such as dark purples. Just some of the trending hues for the coming year, these colours are warm, inviting and deeply personal. They can make a bold statement in your home or create a serene restful environment for you.
As for sustainability, the environment and wellness all play a key role in the future of design, we see the colours of 2025 supporting
these key elements. These colours are nostalgic, earthy, intense, timeless and restorative. Whether you use them boldly or sparingly, they will set the tone of your space.
Textured walls and fabrics
Texture is a big trend this year. In 2025 you’ll be seeing everything from decorative plaster finishes, wallpaper, especially on ceilings, and all sorts of wall paneling. Plain walls are a thing of the past, this year is about adding a layer of depth and interest to your rooms, creating wonderful focal points and features within the space. But texture is not just for our walls, we are seeing it everywhere, from soft lush fabrics and rugs that appeal to our senses, to reclaimed rough-hewn woods or natural stone that introduces an earthier element to our interiors. These textures intensify both our tactile and visual experiences in a space and create a warm inviting aesthetic for all to enjoy.
by LINDA MAZUR
Care for the environment
Sustainability continues to be prominent in this year’s trends as we focus on creating beautiful spaces that are also kind to the environment. Second-life furniture continues in popularity as well as eco-friendly product options. Refurbishing cabinetry or upholstering an old sofa can go a long way for the environment while sparking some design creativity. When buying new, invest in quality sustainable pieces of furniture that will last longer. With retro styles making a comeback, vintage furniture and nostalgic thrift-finds will not only fill your home with personality and a touch of history but promote sustainability as well. Blending the old retro styles with a new modern twist will create a balanced, eclectic space that is unique to you.
Redefined luxury
The new year is about redefined luxury, as trends continue to move towards creating casual, comfortable and relaxed spaces without foregoing style. We have seen this over the past few years and will continue to see it moving forward. Our homes are our sanctuary. We want style, but not at the expense of comfort. We want a casual relaxed environment at the end of a long day, but a luxuriously stylized space for entertaining –and both can be achieved. With our spaces now becoming more and more personalized, and with a growing emphasis on health and
well-being, we are also seeing a greater trend towards wellness spaces within our homes. Whether we are creating a grand spa-like bathroom with a sauna, or simply carving out a small space for yoga and meditation, our homes are working double duty for our wellness as well.
In 2025, our homes are focused on being warm, inviting and luxuriously comfortable. Whether you infuse your space with deep rich colours, or are looking to create a calm and relaxing aesthetic, this year’s design trends are certain to deliver large on inspiration and creativity.
Linda Mazur is an award-winning, nationally publicized designer and Principal of Linda Mazur Design Group. With almost two decades of experience this in demand multi-disciplinary design firm is known for creating relaxed, stylish spaces and full-scale design builds within Toronto, the GTA and throughout Canada. lindamazurdesign.com
@LindaMazurGroup
FIND YOUR NEXT HOME
BRAMPTON
1. Bristol place 199 Main St, North, Brampton
2. Duo condos Malta ave & Steeles Ave
CALEDON
3. Mayfield Collection 2256 Mayfield Road. Mayfieldcollection.ca
ETOBICOKE
4. Curio Condos 801 The Queensway marlinspring.com
5. Humberwood Heights 50 Humberwood Blvd. tributecommunities.com
6. Arcadia District Bloor & Kipling arcadiadistrict.com
7. Kül Condos 875 The Queensway kulcondos.com
MARKHAM/ UNIONVILLE
8. Panda Markham 8200 Warden Ave. lifetimedevelopments.com
9. Gallery Towers at Downtown Markahm 162 Enterprise Blvd. downtownmarkham.ca
10. Highmount 4077 Hwy. 7 highmountbykingdom.com
MISSISSAUGA
11. Birch at Lakeview Village Lakeshore & Dixie Rd. branthaven.com
12. Artform Condos 86 Dundas St. E. emblemdevcorp.com
13. Exhale Condominiums Lakeshore Rd. East & Dixie Rd. exhalelakeshore.ca
14. Residences at Harbourwalk 1260 Lakeshore Rd. East tridel.com
NORTH YORK
15. Central Park Sheppard Ave. East & Leslie St. amexon.com
16. Yonge City Square 4050 Yonge St. yongecitysquare.com
PICKERING
17. Vupoint Kingston Rd. & Liverpool Rd. tributecommunities.com
OSHAWA
18. U.C. Tower 2425 Simcoe St N,Oshawa tributecommunities.com
TORONTO
19. Lawrence Hill Urban Towns Don Mills & Lawrence lawrencehillurbantowns. com
20. 489 Wellington St. W. 489 Wellington St. W. lifetimedevelopments.com
21. 500 Dupont St. 500 Dupont St. lifetimedevelopments.com
22. Artistry Condos 292 Dundas St. W. tributeartistrycondos.ca
23. Panda Condos Yonge & Dundas. lifetimedevelopments.com
24. 36 Eglinton Ave. W. 36 Eglinton Ave. W. lifetimedevelopments.com
25. Linx Condominiums Danforth & Main tributecommunicties.com
26. Y&S Condos 2161 Yonge St. tributecommunities.com
27. 50 at Wellesley Station
50 Wellesley St. East pureplaza.com
28. No. 1 Yorkville 1 Yorkville Ave. pureplaza.com
29. Theatre District Residences Adelaide & Widmer pureplaza.com
30. Bijou on Bloor 2450 Bloor St. West pureplaza.com
31. The Briar on Avenue 368 Briar Hill Ave. pureplaza.com
32. One Seventy Spadina & Queen St. West pureplaza.com
33. King West & Charlotte King St. West & Charlotte pureplaza.com
34. Forest Hill Private Residences
2 Forest Hill Rd. foresthillresidences.com
35. Oscar Residences 500 Dupont St. W. at Bathurst oscarresidences.com
36. Kingside Residences Kingston Rd. & Danforth altreedevelopments.com
37. Allure Condominiums 250 King St. East emblemdevcorp.com
38. XO Condos King & Dufferin lifetimedevelopments.com
39. 225 Jarvis Street Condos Dundas St. East & Jarvis amexon.com
40. 101 Spadina Spadina & Adelaide 101spadina.com
41. The Residences of Central Park Sheppard Ave. East & Leslie centralparktoronto.com
42. The Dawes at Main Street Danforth & Main St. thedawes.com
43. Birchaus Birchcliffe Village on Kingston Road birchausresidences.com
44. Knotting Hill 4000 Eglington Ave. W knottinghillcondominiums. com
45. Park Avenue Place 1 & 2
Jane St. & Rutherford Rd. solmar.ca
VAUGHAN
FIND YOUR NEXT HOME
The latest properties in the Southwestern Ontario Area to keep your
BURLINGTON
1. Affinity Condos Plains Rd. E. & Filmandale Rd. rosehavenhomes.com
2. Millcroft Towns Appleby Line & Taywood Dr. branthavenmillcroft.com
3. North Shore North Shore Blvd. & Plains Rd. nationalhomes.com
FORT ERIE
4. Discoverie Condos Signature Communities discoveriecondos.ca
HAMILTON
5. 1 Jarvis 1 Jarvis 1jarvis.com
6. The Design District 41 Wilson Street emblemdevcorp.com
7. Corktown 225 John Street South corktown.condos
NIAGARA
REGION
8. Lusso Urban Towns Martindale Rd. & Grapeview Dr. lucchettahomes.com
OAKVILLE
9. The Greenwich Condos at Oakvillage Trafalgar Rd. & Dundas branthaven.com
10. Synergy McCraney St. E. & Sixth Line branthaven.com
11. Upper West Side at Oakvillage 351 Dundas St. E. upperwestsidecondos2.ca
12. Greenwich Condos at Oakvilage Trafalgar Rd. & Dundas St. branthaven.com
13. Villages of Oakpark Dundas & Trafalgar ballantryhomes.com
STONEY CREEK
14. Casa Di Torre 980 Queenston Rd. branthaven.com
15. On The Ridge Lormont Blvd. & Chaumont Drive liveontheridge.ca
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THE FEES MUNICIPALITIES ADD TO NEW HOMES
MUST BE ADDRESSED
In recent weeks, there have been significant discussions about development charges (DCs) in municipalities across the GTA – but specifically in the City of Toronto. Government taxes, fees and charges, such as DCs, have contributed to a “cost to build” crisis that has undermined the financial viability of new home construction, is stalling residential development and threatening future housing supply across the metropolitan area. As Toronto, higher orders of government and the industry struggle to address this pressing challenge, it is clear that a fact-based discussion is needed to understand how the fees increased stratospherically and how they impact the cost of new housing. Now is the time to address these spiraling costs.
New homes in Toronto are subject to a multitude of fees and charges collected by the municipality, such as DCs, community benefits charges, educational development charges, planning fees and parkland cashin-lieu payments (among others). Of these, DCs are the largest of the municipal fees levied and, like all input, material and labour costs, they impact the price paid by the newhome buyer. Development charges were intended to offset the cost of infrastructure, transit and services incurred by growth, but given that enhanced infrastructure and services provide value for all and the eyewatering rate of increase, it is clear
that both new and existing residents benefit from these investments.
The City of Toronto publishes its development charges rates on its website, meaning anyone can check the information at any time. The City even publishes historical rates, which allows going back to 2013 to verify rates of increase over the last decade. In 2013, development charges on a new single-family home were $19,412 (Nov. 1, 2013). This year (June 6, 2024), the rate reached $137,846 – an increase of 606 per cent. Over the same period, DCs on a one-bedroom apartment increased from $8,356 to $57,153 or 584 per cent.
To put that into perspective, over the past decade, the residential property tax rate has increased in the low double-digit percent range across the GTA. For the same period, the sale price of the average home (all types) in Toronto has increased by approximately 95 per cent and according to the Bank of Canada, the actual rate of inflation was 31.54 per cent over that same period.
So, development charges in the City of Toronto have increased six times faster than home prices and 20 times faster than inflation (hardly in line with inflation, as some highprofile commentators have alleged). This then begs the question: Does it cost six times more today to pave a road or install a water main versus a decade ago? The answer is clearly no.
It is hardly surprising then that the City of Toronto’s DC reserve fund is swelling massively. Since 2013, the fund increased from $383 million to $2.821 billion as of Dec. 31, 2023 – a 640-per-cent increase. It must be pointed out that the city is charging
roughly six times more per door and yet also seems to have six times more money in the reserve.
Let me be clear, municipal fees and charges are not the only factor driving home price appreciation, but they are a significant variable given the impact on new home prices, the cost to build challenge, the rate of increases and the accumulation of massive surpluses. Recently, the City has, laudably, recognized that DCs are a significant barrier to building new homes. This announcement, which is very narrowly focused, must be broadened to build much needed new housing and more importantly, it is time for a serious discussion about developing a new approach to fund infrastructure.
Dave Wilkes is President and CEO of the Building Industry and Land Development Association (BILD), the voice of the homebuilding, land development and professional renovation industry in the GTA. For the latest industry news and new home data, follow BILD on Twitter, @bildgta or visit bildgta.ca.
DAVE WILKES
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