Do Toronto Rental Properties Still Need Parking?

Estimated reading time: 6 minutes

For years, landlords and investors in Toronto assumed that a rental property without parking would struggle to attract tenants. As urban density increases, public transit expands, and alternative mobility options grow, that assumption is beginning to change.

In Toronto’s evolving rental market, proximity to transit, affordability, and convenience are increasingly important considerations for renters.

For investors developing multiplex housing , where every portion of a lot needs to be used efficiently, the question is no longer simply whether every unit needs a dedicated parking space.

Is Parking Necessary for Rental Properties in Toronto?

Parking remains valuable to many renters, particularly households with children, commuters travelling outside the city, people with mobility needs, or residents living in areas with limited transit.

But in dense, transit-connected neighbourhoods, access to transportation alternatives can reduce the importance of an on-site parking space.

The Declining Need for Car Ownership in Toronto

Toronto’s transportation network and the growth of alternative mobility services have changed the way many urban residents move around the city.

For some younger renters in particular, the cost and inconvenience of owning a private vehicle can outweigh the benefits.

Key Factors Driving the Shift Away From Car Ownership

1. High Costs of Car Ownership

Insurance, gas, maintenance, financing, and parking can make car ownership expensive for Toronto residents.

Renters living close to work, transit, and everyday services may decide that those costs are not worthwhile.

2. Ride-Sharing and Car-Sharing Services

Services such as Uber and Lyft allow residents to make occasional trips without maintaining a private vehicle.

Car-sharing programs such as Communauto and Zipcar provide another alternative for residents who need access to a vehicle only occasionally.

3. Expanded Cycling Infrastructure

Toronto has continued investing in cycling infrastructure, making bicycles another transportation option for some daily trips and commutes.

A 2021 transportation study explored changing travel behaviour and vehicle use in the city.

Brandon Sage, a real estate advisor at LandLord Property & Rental Management, has observed the shift professionally and in his own transportation choices.

“I used to bike everywhere, and that worked for years. But with so many options now — Uber, Lyft, and car-share services — I don’t feel like I need to own a car at all.”

That perspective reflects an increasingly common lifestyle among some downtown renters, for whom flexibility, affordability, and transit accessibility can matter more than a private parking spot.

Public Transit Expansion Is Changing the Parking Equation

Toronto has made significant investments in public transit expansion, which could reduce car dependence in areas served by new and improved routes.

Projects discussed during this period included:

• The Ontario Line — a planned rapid-transit connection between Exhibition Place and the northeast portion of the downtown network.
• The Scarborough Subway Extension — an extension of Line 2 farther into Scarborough.
• Line 6 Finch West — an approximately 11-kilometre light-rail project intended to improve transit access in northwest Toronto.

As the transit network expands, proximity to subway stations, LRT stops, and frequent bus routes becomes an increasingly relevant consideration when assessing the rental value of a property.

Multiplex Developments: Prioritizing Density Over Parking

Toronto's approach to parking requirements changed significantly in 2022 when the City removed minimum parking requirements for many new developments, including low-rise residential projects.

That shift gave property owners greater flexibility to determine how much parking makes sense for a particular site instead of automatically allocating land to a prescribed minimum number of vehicle spaces.

This can be particularly important for multiplex infill projects , where relatively small lots need to accommodate dwelling units, landscaping, access, servicing, waste storage, bicycles, and other site functions.

A December 2024 City report also highlighted the significant role of private transportation companies such as Uber and Lyft within downtown Toronto and their connection with the public-transit network.

From an investment perspective, reducing unnecessary parking can allow a project to prioritize:

• More efficient building and unit layouts.
• Bike storage and other mobility amenities.
• Landscaping or outdoor space.
• Site configurations that better support the intended number of homes.

Parking Demand Still Depends on the Property

The declining importance of parking in some Toronto neighbourhoods does not mean parking has no value.

A property near a subway station in a walkable downtown neighbourhood may attract a very different tenant profile from a property in an area where daily trips are easier by car.

Investors should therefore consider:

• Distance to rapid transit and frequent bus routes.
• Walkability to shops, schools, parks, and employment.
• Bike infrastructure and storage.
• The likely tenant profile.
• Street-parking availability.
• Whether removing parking materially improves the design or economics of the project.

A New Era for Toronto’s Rental Market

The idea that every Toronto rental unit requires a dedicated parking space is increasingly outdated in neighbourhoods where residents have realistic transportation alternatives.

For multiplex developers and rental investors, parking should be treated as a site-specific design and leasing consideration rather than an automatic requirement.

Key Takeaways for Landlords and Investors

• Parking may be less important in neighbourhoods with strong transit and walkability.
• Tenant demand depends on location and the likely renter profile.
• Removing unnecessary parking can create more flexibility in multiplex design.
• Bike storage, transit access, and other mobility options can partially offset limited parking.
• Parking should still be evaluated property by property rather than eliminated automatically.

For investors considering a multiplex, the goal is not simply to maximize the number of units or minimize parking. It is to design a property that uses the site efficiently while remaining functional for the tenants it is intended to attract.