There is broad recognition among buyers, planners and policymakers that the GTA housing market needs a wider range of ground-oriented, entry-price homes. Homebuyers at the entry level of the ownership market tend to want the same things: two floors of living space, their own front door, outdoor space, storage and parking, at a price that is realistic in today’s economy.
In the GTA, where the average price for a townhome reached $844,579 in June 2026, according to the Toronto Regional Real Estate Board, that combination has been difficult to find. The gap between what buyers are asking for and what the market has been delivering has become one of the defining tensions in new housing development.
Smart sizing as a design response
As a design response, “smart sizing” is gaining traction across the industry. The concept centres on making every square foot earn its place: two-storey layouts with open-concept living/dining spaces, walk-in closets, pantry space and storage sized for daily life. The separation of living and sleeping areas across two floors is consistently one of the features buyers mention first, as is having their own entrance and a private outdoor area. Both reflect what buyers in this segment have consistently signalled.
Two-bedroom, two-bathroom configurations form the core of most new urban townhome offerings targeting this segment. Dedicated parking is included as standard and maintenance fees are structured to stay within a range buyers entering the market can carry alongside a mortgage. The result is a home that delivers space and functionality at an accessible price, with a total cost of ownership that works for household budgets.
Location as part of the value calculation
Location is part of the value calculation in ways that buyers are increasingly clear about. A home close to transit, employment and services reduces commuting costs over the life of ownership in ways that affect a household budget as much as the purchase price. Walkable communities with access to parks and trails support quality of life without adding to what a home costs.
Site selection for entry-level product is increasingly shaped by these criteria. Communities near post-secondary institutions, GO Transit corridors and major highway connections are drawing first-time buyers, downsizers and investors alike, drawn by the combination of accessible pricing and strong location fundamentals. These are the factors that determine what a home actually costs to live in well after closing day.
What the market is telling developers
Buyers at this price point have been direct about what they want: space, functionality, their own entrance and a price aligned with what they can realistically carry. Those priorities are driving design decisions, site selection and pricing strategy across a growing segment of the new home market.
The urban townhome, ground-oriented, purpose-sized and priced for accessibility, is emerging as one of the more direct answers to an affordability gap that shows no sign of resolving on its own.
Note: Andrew Sjogren is President of the Toronto Division of Minto Group.
You May Also Like To Read
Councillor cries foul over being excluded from overseas trip