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After several quarters of lukewarm activity, new development proposal activity in Toronto appears to have turned a corner, with application volumes and proposed floor areas rebounding strongly in the first quarter of 2025. Three new data sets from UrbanToronto\u2019s UTPro service<\/a> highlight record-setting residential proposals, a rising tally of new projects and gross floor area (GFA), and a growing diversity in project types. Yet despite these indicators of renewed confidence, broader economic headwinds \u2014 including uncertainty in trade relations with the United States \u2014 cast doubt on the durability of this momentum.\u00a0<\/p>\n In the first quarter of 2025, developers proposed 44 new projects in the City of Toronto, encompassing 66 buildings. These applications collectively propose 25,598 residential units \u2014 distributed among 12 condominium projects, 16 rental projects, and two office-inclusive builds \u2014 highlighting a diverse range of housing options. Of the total dwellings, 62% are one-bedroom units, 24% are two-bedrooms, and 11% are family-sized suites of three bedrooms or more, reflecting the evolving needs of Toronto\u2019s population. Proposed heights remain lofty, with the tallest building reaching 221 metres (approximately 67 storeys) and an average height of 86.7 metres (about 26 storeys), underscoring an ongoing emphasis on high-rise living. In total, developers aim to deliver 1,890,214 square metres (about 20.35 million square feet) of new gross floor area across residential, institutional, and commercial sectors, indicating a multifaceted approach to growth in the city.<\/p>\n The first quarter of 2025 saw the highest number of residential units proposed in a single quarter over the last five years, with a nearly 60% jump from the 16,284 proposed in Q1 2021, when Toronto\u2019s pipeline was just beginning to regain momentum.<\/p>\n Interestingly, the average number of car parking spaces per unit sits relatively low \u2014 0.36 in Q1 2025 \u2014 reflecting an ongoing shift away from heavy parking provision since minimum parking requirements were removed in 2021. Unrestricted by required minimums, the number of proposed parking units better reflect anticipated future market trends for car ownership. Meanwhile, bike parking provision has held steady around 0.70 per unit, after peaking at 0.90 in Q1 2023.\u00a0<\/p>\n This gradual recalibration has two implications: first, the declining car parking per unit reflects that developers are continuing to respond to shifting travel habits and City policy aimed at reducing private vehicle reliance, especially in light of the major changes to public transit<\/a> that are currently underway; and second, the decline in bike parking per unit that a larger portion of new units are being built farther away from the downtown core. \u00a0<\/p>\n Looking at recent trends, total new gross floor area (GFA) proposed in Q1 2025 has soared to a five-year high of 20.35 million ft\u00b2, surpassing previous year-over-year marks. Applications, meanwhile, climbed to 44, an uptick from both 2023 and 2024 levels.<\/p>\n That rise in GFA indicates not just more buildings, but larger buildings. Combined with high-volume developments along major corridors, it appears that developers are betting on Toronto\u2019s long-term fundamentals \u2014 such as population growth, job creation, and rising demand for central, transit-accessible housing.\u00a0<\/p>\n Despite the encouraging numbers, developers and investors face real concerns about the path ahead. With Canada\u2019s largest trading partner, the United States, showing signs of economic uncertainty and ongoing tensions over trade policy, the flow of materials and capital could tighten. Potential duties on construction materials, supply-chain disruptions, and currency fluctuations might pressure both costs and timelines \u2014 factors that can quickly dampen the optimism that has taken hold in early 2025.<\/p>\n While the strong Q1 activity highlights Toronto\u2019s enduring appeal and resilient housing demand, it also serves as a reminder: global conditions still matter. Even as developers push ahead on towers, infrastructure, and community amenities, the city\u2019s growth spurt could be tested if broader economic forces begin to bite.<\/p>\n * * *<\/p>\n UrbanToronto research and data service,\u00a0<\/em>UrbanToronto Pro<\/em><\/a>, provides comprehensive data on construction projects in the Greater Toronto-Hamilton Area\u2014from proposal through to completion. We also offer\u00a0<\/em>Instant\u00a0Reports<\/em><\/a>, downloadable snapshots based on location, and a daily subscription newsletter,\u00a0<\/em>New Development Insider<\/em><\/a>, that tracks projects from initial application.\u200b<\/em><\/p>\n <\/imgx><\/imgx><\/imgx><\/imgx><\/imgx><\/div>\n