What Now for Ontario’s Real Estate Market?

With the 2025 federal election concluded, the Liberal government has unveiled an ambitious housing strategy aimed at addressing Canada’s affordability crisis. For Ontario residents these developments could significantly impact the real estate landscape.

Whether you’re planning to buy, sell, lease or invest in 2025, here’s what the post-election environment could mean for you—and what you should be watching.

Federal Housing Plan: Big Targets, Big Changes

The Liberal government’s plan aims to deliver 3.9 million new homes by 2031, an ambitious effort to curb the housing crisis. Key measures include:

Unlocking Public Land: Federal and surplus lands will be leased to developers for residential use.
$6 Billion Canada Housing Infrastructure Fund: Funding infrastructure that supports new builds (sewers, transit, water) across cities.
GST Elimination: Removing the Goods and Services Tax (GST) on new home builds under C$1 million, saving first-time buyers thousands.
Support for Prefab Homes: Boosting faster construction through $25 billion in financing for modular and prefab builders.

Stat snapshot: 3.9 million homes = ~500,000 homes per year — almost double the national pace from 2018–2023.

Buying a home soon? You may find these blogs helpful!

How This Helps First-Time Home Buyers

Affordability has been a top concern, and the new housing plan could bring real advantages for first-time buyers, including:

Lower Prices on New Homes: With the GST cut, a C$800,000 new home could cost buyers up to $40,000 less.
Expanded Access to First Home Savings Accounts (FHSA): Allowing Canadians to save up to $40,000 tax-freetoward a first home.
More Entry-Level Supply: Prioritizing mid-density developments (townhomes, low-rise condos) aimed at young buyers and families.

Bottom line: If you’re entering the market, these changes could lower your upfront costs and open up more inventory options over the next 12–24 months.

How This Might Help Tenants

The federal government’s focus on rental housing includes:

Funding purpose-built rental apartments.
Fast-tracking affordable units through municipal agreements.
Pledging to protect tenants’ rights by encouraging provinces to curb illegal evictions.

At the same time, Toronto has launched its own initiatives:

Stronger anti-renoviction rules: Under new 2025 regulations, landlords in Toronto who evict tenants for renovations must offer the tenant the right to return at the same rent or face penalties.
Dedicated enforcement team: Toronto will increase funding to investigate suspected bad-faith evictions and renovictions.

Important for renters: If you’re facing a potential renoviction in Toronto, you’ll now have better protections and legal recourse.

Searching for guidance on selling a home in Ontario? Check out these other blogs from our site!

Toronto’s Move to Freeze Development Charges

To help push more supply onto the market, Toronto City Council froze development charges in 2025, stopping a scheduled 4% increase. This policy:

Keeps costs lower for developers.
Encourages new rental and ownership housing.
Supports the city’s commitment to building 4,831 rental units (with 1,075 affordable homes) under a $2.55 billion federal-municipal deal.

What It Means for Ontario Real Estate

For Buyers	For Sellers	For Investors	For Tenants
Lower taxes and fees	Stable demand in popular areas	Better project feasibility	Stronger eviction protections
More entry-level supply	Limited short-term inventory pressures	Government incentives for rentals	More purpose-built rental supply
Potential for better affordability by late 2025	Opportunity to market move-in-ready homes	Focus on mid-density and rental developments	Right-to-return rules after renovations

Key Stats to Watch

$6 Billion Canada Housing Infrastructure Fund now rolling out
Up to $50,000 potential GST savings for some first-time buyers
Over 4,800 rental units targeted in Toronto’s federal-municipal deal
Toronto development charges frozen to encourage immediate new builds

Final Thoughts: What You Should Do Now

The 2025 election brought major promises—and if fulfilled, these housing initiatives could reshape Ontario’s real estate landscape over the next several years. However, market impacts won’t happen overnight. Supply challenges, interest rates, and local policies will all play a role.

Whether you’re buying, selling, investing, or renting, understanding these dynamics is crucial. How to choose a real estate agent in this environment matters more than ever—partnering with the right experts can help you navigate incentives, avoid pitfalls, and move confidently toward your goals.

Contact us anytime by calling (416-884-8027) or email (t eam@amblerhomes.com) to discuss how the new Liberal government housing policy can help you with your real estate goals!