Clearing the Path for New Housing Supply
In a significant move aimed at accelerating housing creation, Toronto City Council adopted fourteen major development applications during its October 2025 session, granting zoning approvals for more than 5,200 new housing units. These projects range from mid-rise rental buildings in Scarborough to towering 65-storey mixed-use developments in Midtown.
This centralized action by Toronto City Council is crucial, as bureaucratic delays at the zoning stage are often cited as a major bottleneck to addressing the housing shortage. While the approvals mark a positive step in streamlining the development pipeline, they also highlight the ongoing political balancing act between accommodating rapid growth and securing vital community benefits.
This report breaks down the key approved projects, analyzes the geographic impact of these decisions, and discusses the critical question of whether these “paper approvals” will translate into actual new housing supply Toronto needs.
The Numbers and the Distribution
The October 2025 approvals represent a substantial addition to Toronto’s development pipeline, demonstrating a focus on high-density, transit-oriented corridors.
Key Project Highlights
The approvals spanned the city, but were concentrated along major arterial roads and transit routes:
| Project Location | Unit Count (Approximate) | Type | Noteworthy Feature |
| 2323 Yonge Street (Midtown) | 784 Units | 65-storey Mixed-Use Tower (Condo) | Secured $\$4.2$ million for community facilities and affordable housing provisions. |
| 2345 Yonge Street (Midtown) | 1,370 Units | Two Mixed-Use Towers (Condo) | Significant Midtown density increase on a major transit corridor. |
| 135 St Clair West (Deer Park) | 576 Units | 49-storey Mixed-Use Tower (Rental) | Inclusion of childcare facilities and commercial space. |
| 3600 Finch East (Scarborough) | 371 Units | 12-storey Mixed-Use (Condo) | Located near a revitalization area, combining residential, retail, and office space. |
| 126 Bellamy North (Scarborough) | 184 Units | 8-storey Rental | Infill project that maintains existing rental units with long-term protections. |
The approval of 14 applications in one session reflects the City’s commitment under its HousingTO Action Plan to meet aggressive housing targets.
Strategic Zoning: Density and Rental Focus
The nature of the projects approved indicates the City’s strategic planning priorities, particularly in increasing Midtown density and prioritizing the struggling rental market.
A. Transit-Oriented Density
The largest approvals (2323 Yonge and 2345 Yonge) are located on the Yonge Street spine in Midtown—a prime example of Transit-Oriented Density. By approving massive residential projects near existing subway stations, the City ensures that new population growth is housed in areas already served by high-order transit. This strategy is essential for reducing long-term strain on road infrastructure.
B. Bolstering the Rental Supply
A critical aspect of the approvals is the inclusion of several purpose-built rental projects (135 St Clair West, 126 Bellamy North, 2335 St Clair West). Given the current crisis in rental affordability and historically low vacancy rates, these projects are highly valued. The 126 Bellamy North project explicitly includes long-term protections to maintain existing affordable rental units—a key measure in preserving housing security.
You can also check our blogs about Midtown Toronto’s New Chapter: Graywood Revives 27-Storey Rental Proposal Near Yonge & Eglinton and Menkes Proposes Dual Towers at 61 Brownlow Avenue in Davisville Village.
The Condition of Approval: Community Benefits and Inclusionary Zoning
Modern Toronto zoning approvals are rarely simple permits; they are complex negotiations tied to community infrastructure.
- Community Benefits: Many approvals secured millions of dollars in Section 37 or Community Benefits Charges (CBCs) earmarked for local infrastructure, such as upgrades to community centers, parks, and schools. For example, the 2323 Yonge tower includes a $\$4.2$ million contribution.
- Affordable Housing Provisions: Following the adoption of the Inclusionary Zoning (IZ) framework (which mandates affordable units near major transit areas), several projects included provisions for affordable rental units, ensuring a mixed-income approach to growth.
This requirement to secure community infrastructure ensures that density comes with corresponding improvements to local services, helping to mitigate local opposition to tall buildings.
The Critical Gap: From Zoning to Construction
While Toronto zoning approvals are a major victory for the new housing supply Toronto needs, industry analysts remain cautious. An approval on paper does not guarantee a shovel in the ground.
- Financing Headwinds: The primary challenge is the current economic climate. Many of these approved projects (which were submitted years ago) now face skyrocketing construction costs and high interest rates, making it difficult for developers to secure the necessary construction financing.
- The “Paper Housing” Risk: As noted by some experts, many approvals may turn into “land banks,” where developers hold the rights but delay construction until costs drop and pre-sale demand recovers. This risks a future supply shortage, despite the City’s current efficiency in approvals.
Conclusion
Toronto City Council’s October 2025 session delivered a substantial and geographically diverse boost to the development pipeline, greenlighting over 5,200 new units. The concentration of these Toronto zoning approvals along major avenues and near transit hubs is a strategic necessity for the city’s dense growth model.
The next challenge now shifts from the legislative chambers to the financial markets. The effectiveness of these approvals in truly easing the housing crisis will depend entirely on the economic environment that permits developers to transform these paper permits into tangible new housing supply Toronto desperately needs.
