Is Parking Necessary for Rental Properties in Toronto? Not Anymore.
What is the ratio of parking spaces in a building? What’s the minimum parking requirements Toronto? These pressing questions will no longer be obstacles for multiplex developers and property investors in Toronto.
For years, landlords and investors in Toronto assumed that a rental property without parking would struggle to attract tenants. However, as urban density increases, public transit expands, and alternative mobility options grow, this assumption is rapidly becoming outdated.
In Toronto’s evolving rental market, proximity to transit, affordability, and convenience have overtaken parking availability as key renter priorities. For those investing in multiplex developments, where space is optimized for rental income, eliminating dedicated parking is no longer a dealbreaker for tenants—and may even be a smart financial decision.
The Declining Need for Car Ownership in Toronto
Toronto’s infrastructure has fundamentally changed how people move around the city. In the last decade, personal vehicle ownership has become impractical for many urban dwellers, particularly younger renters.
Key Factors Driving the Shift Away From Car Ownership
- High Costs of Car Ownership
- Rising insurance rates, gas prices, maintenance fees, and downtown parking costs make owning a car in Toronto a financial burden for many renters.
- Ride-Sharing & Car-Sharing Services
- Platforms like Uber and Lyft allow residents to travel conveniently without owning a car.
- Car-sharing programs such as Communauto and Zipcar provide access to vehicles on demand for longer trips.
- Expanded Cycling Infrastructure
- The city has invested in more dedicated bike lanes and improved cyclist safety, making biking a viable alternative to driving for daily commutes.
A 2021 study from the University of Toronto’s Transportation Research Institute found that personal vehicle ownership among downtown residents under 40 has dropped by nearly 30% since 2010.
Brandon Sage, a real estate advisor at LandLord Property & Rental Management, has observed this shift firsthand—not only professionally but in his personal 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.”
This perspective is increasingly common among downtown renters, for whom flexibility, affordability, and transit accessibility matter more than a parking spot.
Public Transit Expansions Are Making Cars Even Less Necessary
For renters, the city’s growing transit network is rapidly replacing the need for a personal vehicle. Toronto has made significant investments in transit expansion, which will only further reduce car reliance over the next decade. Some of the most impactful projects include:
- The Ontario Line – A 15.6 km subway line from Exhibition Place to the Ontario Science Centre, improving connectivity across downtown.
- The Scarborough Subway Extension – A major expansion of Line 2 (Bloor-Danforth), improving accessibility in Scarborough.
- Line 6 Finch West – An 11-km light rail project designed to enhance transit access in northwest Toronto.
As transit infrastructure improves, tenants increasingly prioritize proximity to subway stations, LRT stops, and high-frequency bus routes over on-site parking.
A 2023 survey by the Toronto Regional Real Estate Board found that nearly 70% of downtown renters ranked transit access as a more important factor than having a dedicated parking spot.
This fundamental shift in renter preferences directly impacts real estate investment decisions, particularly for multiplex developments.
Multiplex Developments: Prioritizing Density Over Parking
In Toronto, the necessity of providing parking spaces in multiplex developments has significantly diminished due to evolving urban transportation trends. As of February 3, 2022, the City of Toronto eliminated minimum parking requirements for duplexes, triplexes, and fourplexes, allowing developers to focus on optimizing land use without the obligation to include parking facilities.
This policy change aligns with the city’s broader transportation dynamics. A December 2024 report highlighted that Private Transportation Companies (PTCs) like Uber and Lyft accounted for 14.2% of total traffic in Toronto’s downtown core, indicating a substantial reliance on ride-sharing services. Additionally, 34% of PTC users reported using these services to connect to public transit, underscoring the complementary relationship between ride-sharing and public transportation.
From an investment standpoint, eliminating the need for parking allows for more efficient land use, better unit layouts, and increased long-term rental yield. Now, investors can focus on:
- Creating more rentable units to increase revenue.
- Adding tenant-friendly amenities like bike storage or shared common areas.
- Designing properties that align with modern urban living trends.
A New Era for Toronto’s Rental Market
The idea that parking is a must-have for rental properties is outdated—especially in high-density areas with strong transit connections. Toronto is following the lead of other major cities where car ownership is declining, and alternative transportation options are thriving.
Key Takeaways for Landlords & Investors
- Limited parking in new developments will not negatively impact rental demand in well-connected areas.
- Transit access, affordability, and modern amenities matter more to renters than on-site parking.
- Investing in density, not parking, maximizes rental income in Toronto’s evolving real estate market.
For property investors, this is a moment of opportunity. By prioritizing rental density, transit accessibility, and modern urban living trends, landlords can future-proof their investments.
Thinking About a Multiplex Development? Let’s Talk.
At LandLord, we specialize in high-density multiplex design-build projects that align with Toronto’s evolving rental market trends. If you’re considering a multiplex project but worried about parking limitations, we can help you develop a strategy that maximizes rental income while meeting tenant demand.
Contact us today to learn more about how multiplex development can work for your investment goals.
