Prime Toronto Areas for Multi-Family Near TTC Transit
As Toronto’s population continues to rise, housing demand is skyrocketing, and the city’s transit system plays a pivotal role in determining where real estate opportunities thrive. For real estate investors, particularly those focused on multi-family properties, understanding the influence of public transit on property values is essential.
Why Public Transit Proximity Drives Multifamily Growth
Properties near major transit hubs consistently outperform those further away. Public transit proximity not only boosts tenant demand but also drives buyer interest, making multi-family investments in these areas particularly attractive. Access to public transportation, especially the TTC subway and light rail, significantly enhances both the convenience and lifestyle appeal of properties, making them highly sought-after by professionals and families alike.
Historical data and recent analysis report that properties near public transport and transit lines appreciate at a faster rate. For example, the Toronto-York Spadina Subway Extension, which opened in 2017, caused a sharp increase in nearby property values. Similarly, the ongoing construction of the Eglinton Crosstown LRT has spurred speculative price hikes, with further increases expected once the project becomes operational while projects like the Ontario Line promise similar growth opportunities, turning transit-adjacent multi-family properties into high-return investments.
In addition to property appreciation, reduced car dependency due to proximity to public transit makes these properties highly attractive to environmentally conscious and cost-sensitive renters and buyers. Furthermore, the convenience of being near transit hubs enhances access to urban amenities, creating a desirable urban lifestyle that attracts high-income tenants and buyers willing to pay a premium for these advantages. This combination of increased demand, property value growth, and urban appeal makes properties near public transit prime targets for multi-family investments.
Neighbourhoods Benefiting from New Transit Lines
Several Toronto neighborhoods are already reaping the benefits of TTC expansions and improvements, making them prime spots for multi-family investment. Here are our top 6 picks:
1. Mount Dennis
Line Extension: Eglinton Crosstown LRT (Line 5)
Impact: As the western terminus of Line 5, Mount Dennis will experience improved transit connectivity, sparking revitalization in the area with new commercial developments and residential projects.
2. Scarborough City Centre
Line Extension: Scarborough Subway Extension (Line 2)
Impact: The extension of Line 2 into Scarborough will significantly enhance access to downtown Toronto, encouraging further commercial investment and residential growth around the city center.
3. York University Heights
Line Extension: Toronto-York Spadina Subway Extension (Line 1)
Impact: With the extension of Line 1 to Vaughan, neighborhoods around York University have seen improved transit accessibility, benefiting students and residents and driving housing demand and development.
4. East York
Line Extension: Ontario Line
Impact: The Ontario Line will pass through East York, enhancing east-west transit and attracting more real estate development, transforming this already growing neighborhood.
5. Danforth Village
Line Extension: Ontario Line
Impact: Danforth Village will benefit from the Ontario Line’s improved connectivity, which will boost its desirability as a residential area and increase local real estate values.
6. Rexdale
Line Extension: Finch West LRT (Line 6)
Impact: Rexdale will benefit from the new Finch West LRT, improving public transit options in this underserved area and likely spurring economic development and residential interest.
Additionally, neighborhoods with access to streetcars and buses, like Leslieville, Roncesvalles, and parts of Downtown Toronto, are also seeing increased tenant and buyer demand due to their strong connectivity. Areas like Scarborough and Etobicoke with robust bus networks further enhance their appeal for multi-family investors seeking well-connected neighborhoods with lower car dependency.
Planning Your Multifamily Investment Near TTC Expansion
Investors interested in capitalizing on transit-oriented development need to plan strategically and focus on areas with long-term growth potential. Proximity to transit hubs is a key factor, as properties near major subway or LRT stations tend to appreciate faster. Additionally, investors should target neighborhoods where new transit lines are planned or under construction, as speculative growth offers early opportunities. Demographic trends are also crucial; areas with a growing population of young professionals or families, particularly those with improved transit access, are likely to see increased rental demand.
Tips for Identifying High-Growth Areas Along TTC Routes
Monitor City Development Plans: Follow announcements about future TTC expansions to identify emerging growth areas. As more transit lines are developed, areas once considered less desirable due to their distance from the city center will experience rapid growth. For investors willing to act early, these areas offer significant long-term returns.
Study Historical Data: Research how property values have shifted in other areas following transit developments, such as the Spadina Subway extension or Eglinton Crosstown.
Partner with Experts: Working with Medvisory, experts in the Toronto real estate market, can give you in-depth insights into local trends and help identify high-growth neighborhoods.
The future of multi-family investments in Toronto is closely tied to the city's ongoing transit infrastructure developments. As a real estate investor, understanding these dynamics allows you to identify the most promising areas for growth. Multi-family properties remain appealing due to their potential for generating consistent rental income from multiple tenants. However, while transit-adjacent properties offer significant returns, they often come with higher upfront costs. Investors must carefully weigh the benefits against these costs to make informed decisions and maximize their investment returns in Toronto’s competitive market.