Toronto Moves Forward with Policies for 120 Transit Station Areas to Boost Housing Supply

TORONTO — The City of Toronto has outlined new policies and next steps for implementing 120 transit station housing areas that will help shape future development, increase housing supply, and advance the provincial target of building 285,000 new homes by 2031.

Mayor Olivia Chow joined City staff today to provide an overview of the recently approved policies covering 25 Major Transit Station Areas (MTSAs) and 95 Protected Major Transit Station Areas (PMTSAs). The provincial approval, granted on August 15 by the Minister of Municipal Affairs and Housing, marks a major step toward integrating housing and transit planning.

Increasing Density Near Transit

MTSAs generally represent a 10-minute walking radius around existing or planned higher-order transit stations. These zones are required to meet provincially mandated minimum density targets for residents and jobs per hectare.

PMTSAs, meanwhile, require municipalities to establish minimum development densities and allow the implementation of Inclusionary Zoning policies, which ensure affordable housing is included in new residential developments near transit.

Mayor Chow highlighted the long-term opportunity for Toronto residents:

“The approval of transit station areas across Toronto unlocks a huge housing opportunity for residents, for years to come. With more housing near transit stations, we are looking at a future where Torontonians can more easily live, work and travel across the city we love. I thank the Province for their partnership and look forward to working with City Council and staff, as well as with the development industry, to get more housing built.”

Workplan for Implementation

City staff have prepared a workplan for rolling out MTSA and PMTSA policies. This includes updating zoning bylaws to match the new requirements. The workplan will be presented to the Planning and Housing Committee on Thursday, September 25, and aims to deliver implementing zoning for City Council’s consideration by late spring or early summer 2026.

The plan forms part of Toronto’s commitment under the federal Housing Accelerator Fund (HAF), through which the Canada Mortgage and Housing Corporation (CMHC) has committed $471.1 million to support housing targets.

Councillor Gord Perks (Parkdale–High Park), Chair of the Planning and Housing Committee, emphasized the importance of moving quickly:

“The long-awaited approval of the 25 MTSAs and 95 PMTSAs is finally completed and now begins the work to ensure that the City of Toronto implements zoning that will achieve the main goals of this policy change – more homes and more affordability. I am pleased to see City staff’s ambitious workplan to move quickly and look forward to working with my Council colleagues on making sure we adopt this plan that will help to achieve our housing targets.”

Why It Matters

The MTSA and PMTSA framework represents one of the most significant policy changes to Toronto’s planning process in recent years. By combining housing density with transit expansion, the City hopes to:

• Encourage mixed-use, walkable communities.

• Increase the supply of both market and affordable housing.

• Reduce reliance on cars by placing residents close to transit.

• Support sustainability and climate action goals.

These policies are expected to be central in shaping Toronto’s growth over the next decade.

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