Toronto’s real estate market in 2025 is experiencing a notable shift, influenced significantly by empty nesters – parents typically aged late 40s to 60s whose children have left home. This demographic is selling larger suburban homes in areas such as North York, opting instead for smaller, urban properties in bustling neighbourhoods like downtown Toronto or Midtown Toronto. These actions are increasing the supply of detached homes while boosting demand for condominiums and townhouses in city centres. This blog explores the pivotal role empty nesters play in reshaping Toronto’s housing dynamics, supported by recent market data, and outlines the implications for buyers, sellers, and investors.

Defining Empty Nesters

Empty nesters represent a demographic cohort of parents whose children have moved out, often for education or independent living. Ranging in age from late 40s to 60s, this group is increasingly prominent in Toronto, mirroring Canada’s aging population trends. In 2025, their influence on the real estate market is pronounced, as they transition from spacious family homes to smaller, more manageable properties. This shift reflects evolving lifestyle needs, a desire to reduce maintenance responsibilities, and the pursuit of financial flexibility through unlocked equity. Their movement from suburban to urban settings is altering supply and demand patterns across the Greater Toronto Area (GTA), creating distinct market opportunities and challenges.

Motivations for Selling Among Empty Nesters

Several key factors drive empty nesters to list their suburban homes for sale:

• Downsizing Needs: Large homes, once suited to raising families, become impractical without children, prompting a move to smaller residences.
• Reduced Maintenance: Older suburban properties, common in areas like North York or Scarborough, demand upkeep that many in this age group seek to minimize.
• Financial Opportunities: Selling releases substantial equity, providing resources for retirement, travel, or alternative investments.

This selling trend contributes to a significant rise in suburban housing inventory. Market data from February 2025 indicates a 76% year-over-year increase in active listings across the GTA, totaling 19,536 properties. This surge has moderated prices, with the average GTA home price declining 2.2% to $1,084,547 compared to the previous year. For prospective buyers, this expanded supply enhances negotiating power, particularly in suburban markets where empty nesters are most active in divesting their properties.

Property Preferences of Empty Nesters

When acquiring new homes, empty nesters exhibit clear preferences for urban settings that align with their lifestyle priorities. These include:

• Condominiums: High-rise or mid-rise units in downtown Toronto or Yonge and Eglinton, offering proximity to transit, dining, and cultural attractions.
• Townhouses: Multi-level homes in urban areas, providing more space than condos yet requiring less maintenance than detached properties.
• Compact Sizes: Properties under 1,500 square feet, striking a balance between comfort and ease of management.

This demand sustains activity in urban markets, despite a slight softening in condo prices. In February 2025, the average condo apartment price in Toronto stood at $688,055, reflecting a modest 1.0% year-over-year decline. Neighbourhoods such as Liberty Village and the Distillery District maintain appeal among empty nesters, drawn by modern amenities and accessibility, stabilizing these segments relative to the broader GTA market.

Market Impacts of Empty Nesters’ Actions

The activities of empty nesters – selling suburban homes and purchasing urban properties – exert a dual influence on Toronto’s real estate landscape:

1. Suburban Supply Surge: The influx of detached homes onto the market fosters a buyer-friendly environment in suburban areas. This is evidenced by the 76% rise in active listings and the 2.2% drop in average GTA home prices.
2. Urban Demand Pressure: Preference for condos and townhouses in city centres sustains competition, counteracting broader price declines and supporting stability in urban submarkets.

This dynamic benefits buyers targeting detached homes, who encounter reduced competition and greater leverage, while posing pricing challenges for suburban sellers. Conversely, sellers of urban condos and townhouses can leverage consistent demand from empty nesters to maintain value, even amidst a softening market.

Current Market Data and Emerging Trends

Recent statistics highlight the transformative role of empty nesters in Toronto’s real estate sector:

• Active Listings: 19,536 properties in February 2025, up 76% from the previous year.
• GTA Average Home Price: $1,084,547, down 2.2% year-over-year.
• Condo Apartment Price: $688,055, reflecting a 1.0% annual decline.
• Bank of Canada Rate: 2.75% as of March 2025, following a 25-basis-point reduction.

An emerging trend reveals that some empty nesters opt to remain in suburban homes, influenced by adult children returning to reside with them. This behaviour, noted in demographic analyses, may temper the supply of suburban listings in specific areas, potentially stabilizing prices despite the broader increase in inventory.

Strategic Considerations for Market Participants

Navigating this evolving market requires targeted approaches for buyers and sellers:

For Buyers

• Suburban Opportunities: Focus on detached homes in areas with high supply and softening prices for optimal value.
• Urban Competition: Pursue condos in city centres if lifestyle amenities are prioritized, anticipating competitive conditions.

For Sellers

• Suburban Pricing: Set competitive prices and stage homes to attract families or investors in oversupplied markets.
• Urban Appeal: Emphasize walkability, low maintenance, and lifestyle benefits to target empty nesters in urban listings.

These strategies enable stakeholders to adapt effectively to market conditions shaped by empty nesters’ decisions.

Future Outlook

The Bank of Canada’s recent rate reduction to 2.75% in March 2025 may stimulate buyer activity later in the year, potentially accelerating sales among empty nesters. However, the market’s trajectory hinges on broader economic factors and housing policy developments. Toronto’s real estate sector is poised for continued evolution, with a sustained shift toward urban, low-maintenance properties as empty nesters remain a key driver of change in 2025 and beyond.