If you’re trying to raise a family in Toronto—or even just planning to—you’ve likely felt it:
You can find a one-bedroom condo for $700K.
You can find a micro-unit in a tower.
But can you find a three-bedroom home you can afford to own?
More and more, the answer is no.
And that’s not by accident.
In a recent report from Mike Moffatt and the Missing Middle Initiative, we see the data laid bare: Canadian cities like Toronto and Vancouver are losing young families at a disturbing rate. And it’s not because people want to leave urban life. It’s because there’s nowhere left to grow.
The “Unit-Is-A-Unit” Problem
Current housing policy in many cities treats all units as equal—from micro studios to family homes. But that logic falls apart fast when you’re trying to raise two kids.
As Moffatt’s report shows:
- There’s a strong positive correlation (r = 0.68) between the number of 3+ bedroom owner-occupied homes in a region and the number of children under 5.
- There’s a negative correlation between 3-bedroom rentals and young children—suggesting that these units are being converted into student and investor rentals rather than homes for families.
In short: the more family-sized ownership housing we build, the more likely we are to retain families.
What Families Need Isn’t Just Rent — It’s Roots
Families don’t just need space—they need stability.
And in our current housing market, stability often comes through ownership. It’s about being able to plant roots, invest in a community, and pass something on.
But right now, the path to ownership for families is getting narrower by the year.
The Two-Bedroom Trap
As explored in the excellent piece “The Two-Bedroom Trap”, many new developments don’t go beyond the “starter unit.” A growing family doesn’t just outgrow their condo—they’re often forced to leave the city entirely to find a suitable replacement.
This pattern creates what Moffatt calls a “quiet exodus.” And the numbers don’t lie: between 2016 and 2021, over 29,000 children under age 5 left the City of Toronto via intraprovincial migration.
That’s not a personal choice. That’s a structural failure.
There Is Hope: Projects That Are Getting It Right
Not all hope is lost.
Two projects in Toronto are bucking the trend—and building for real family life:
🏡 Lambton Mills
Located in a well-established west-end neighbourhood, Lambton Mills is offering true 3-bedroom townhomes and stacked units designed for families—with access to schools, parks, and transit.
🏙️ Reunion Crossing
A mid-rise community near St. Clair West that offers family-sized floorplans in a walkable, connected part of the city. These aren’t luxury penthouses—they’re livable homes priced for growing families.
And right now? Because of softening in the pre-construction market, developers are more open than ever to negotiating deals. If you’ve been on the fence—this might be your window.
What Needs to Change (And How You Can Help)
We need to stop treating 3-bedroom ownership as a luxury.
Instead, it should be viewed as essential urban infrastructure—just like transit, schools, and hospitals.
What we need:
- Incentives for developers to build 3+ bedroom units
- Programs for buyers: shared equity, down payment support
- Policy shifts to prioritize built form, not just unit count
📌 Final Thoughts
Toronto doesn’t need more micro-units.
It needs room for families to stay.
If you’re a young family trying to navigate the market, or someone planning for that next chapter, I’ve built a curated list of family-sized homes across the city—both resale and pre-con.
👉 Reach out directly here or email me at josh@realestateundertheradar.com to get the list.
And if you want to see this topic broken down visually, check out the full YouTube video below:
🎥 Watch the full breakdown here
❓ FAQ – 3-Bedroom Family Housing in Toronto
Why are 3-bedroom homes disappearing in Toronto?
Many new developments focus on 1- and 2-bedroom condos, as they are more profitable for developers and cater to investors. Meanwhile, existing 3-bedroom homes are often converted into rentals for students or shared housing, leaving fewer options for families.
Is renting a 3-bedroom unit enough for families?
While renting offers flexibility, families typically seek ownership for long-term stability, school planning, and community investment. The data shows a stronger correlation between owned 3-bedroom homes and child population growth.
What areas of Toronto still offer family-sized housing?
Neighbourhoods like Lambton, Weston, Keelesdale, and parts of St. Clair West still offer family-sized options—particularly in townhome and mid-rise projects like Lambton Mills and Reunion Crossing.
Are there affordable family housing options under $1M?
Yes. While rare, there are pre-construction and resale units that fit this criteria. If you’re looking, contact me and I’ll share a list of active opportunities.
