The Path to Recovery: TRREB Predicts Toronto’s Real Estate is Headed for a Rebound
The Toronto Regional Real Estate Board (TRREB) has predicted that the Greater Toronto Area (GTA) housing market is positioned for a strong recovery, driven by improved affordability and pent-up demand.
The groundwork for this recovery was laid in 2025, which saw a decline in annual home sales and an increase in new listings. Elevated inventory allowed selling prices to be negotiated downward, which, combined with lower mortgage rates, significantly improved affordability for buyers.
Key Drivers for a 2026 Real Estate Rebound
The return to a better sales environment hinges on restoring consumer confidence and having a solid economic foundation. Sales volume is expected to increase as households become satisfied that the economy and labour market are on a solid footing, potentially satisfying the large pent-up demand accumulated by buyers waiting on the sidelines.
Critical to this positive outlook are major economic factors, including:
Trade and Development
Reaffirmed trade relationships and the initiation of large-scale domestic economic development projects are considered key for improving home sales moving forward.
Financial Breathing Room
To fully unlock the market, TRREB has urged all levels of government to provide tax relief for consumers. Easing the rising cost of living and restoring financial confidence is essential to enabling commitments to long-term monthly mortgage payments.
The GTA housing market may have become more accessible in terms of price and supply, but consumer confidence is the big variable in TRREB’s recovery prediction. If governments at various levels can step in with policies that relieve taxes and take other measures to increase that confidence, the stage is set for buyers to re-enter the market.
Implications for Landlords
Investment property buyers are in a great position to snap up properties at prices not seen in decades in desirable neighbourhoods. However, it is key to not over-leverage financially and to make sure the property is managed properly. Setting your rent price correctly at lease start is incredibly important, even if you don’t buy a rent-controlled property.
The era of the long-term renter is here, and most renters can’t handle large rent increases year-over-year. It’s also important not to set rent too low to insulate yourself against regular capital costs, property tax increases, and other factors that can eat significantly into your investment.
The solution for this is to hire a combination Realtor and property management firm like Highgate Property Investments. We’ll help you find an income-stable property in the right neighbourhood, set your rent to the right price, and vet tenants to protect your investment. Contact us today to find out how we can help you maximize your returns.
