Why 2025 Is Becoming the Year of the “Move-Up Buyer” in Toronto

For the past few years, Toronto’s real estate story has been dominated by rapid interest-rate hikes, hesitant buyers, and a condo market that felt like it was stuck in neutral. But 2025 is shaping up differently — and one trend is standing out more than anything else:

The rise of the Move-Up Buyer.

These are homeowners who purchased during 2018–2022 and are now trading their condos or townhomes for larger properties — often detached homes — while taking advantage of softer prices and stabilizing rates.

And it’s changing the entire dynamic of the Toronto market.

Why Move-Up Buyers Are Driving the Market in 2025

1. Detached & Freehold Homes Are Competitively Priced

Many detached homes in Toronto, Durham, and York Region are still 10–15% below their 2022 peak.
For families growing out of a condo or starter home, this gap is creating an opportunity that didn’t exist a few years ago.

Buyers are realizing:

• “Selling slightly below peak is fine… if I’m buying my next home for even less.”

• Trading up during a softer market can save tens of thousands.

2. Rates Are Stabilizing — With the Outlook Beginning to Shift

After two chaotic years, borrowing costs finally feel predictable.
Even a small rate cut (or a stable holding pattern) boosts confidence, and move-up buyers are the first to react.

They’re locking in:

• 5-year fixed rates that feel manageable

• monthly payments they can budget around

• a buying window before competition heats back up

3. Condo Inventory Is High — But Starter Units Are Still Moving

The condo market remains flooded with supply, especially in downtown and midtown.
But entry-level 1-bed and 1+den units continue to attract strong interest from first-time buyers and investors.

This is creating a “ladder effect”:

• Investors buy starter condos

• First-time buyers buy slightly larger condos

• Those sellers move up to freehold homes

The ecosystem is finally moving again.

4. Homeowners Want Space, Stability, and Community

Since the pandemic, needs have evolved.
Even people who were comfortable in condos a few years ago are now prioritizing:

• an extra bedroom

• a backyard

• home office space

• family-friendly neighbourhoods

Areas like Pickering, Ajax, Whitby, Aurora, Newmarket, and East York are seeing a surge in demand for this reason.

Neighbourhoods Seeing the Most Move-Up Activity

Here are the top 2025 move-up hotspots:

🔹 Durham Region (Ajax, Pickering, Whitby)

• Best value for detached homes

• Growing GO Train network

• Strong interest from Toronto condo sellers

🔹 East York & Scarborough

• Bungalows and semi-detached homes offering rare affordability

• Increasing interest from families priced out of central Toronto

🔹 York Region (Aurora, Newmarket, Stouffville)

• Larger lots

• High-ranking schools

• Popular among condo sellers with young kids

🔹 West Toronto (Etobicoke, Mimico)

• Great for those moving from downtown

• Strong future growth thanks to transit expansions

What This Means for Toronto Sellers Right Now

If you own a condo or starter home, especially:

• 1 bed

• 1+den

• 2-bed under 800 sq ft

— you’re in a surprisingly strong position. These units continue to sell well, especially when priced and marketed correctly.

Move-up buyers are also benefiting from:

• healthy demand for entry-level homes

• negotiable pricing on detached properties

• a balanced market that rewards smart timing

Should You Move Up in 2025? Here’s the Quick Test

Ask yourself:

✔️ Is your current home starting to feel too tight?
✔️ Is your mortgage renewal coming up soon?
✔️ Would a backyard, office, or extra bedroom improve your quality of life?
✔️ Are you planning for a family — or already growing?
✔️ Are you willing to take advantage of today’s softer freehold prices?

If you answered yes to two or more, 2025 is likely your window.

Final Thoughts

Toronto’s market is shifting — not crashing, not skyrocketing — but moving.
And move-up buyers are the ones driving that movement.

Whether you're upsizing, selling, or planning your next step, this year offers a rare combination of:

• stabilizing interest rates

• motivated buyers

• balanced prices

• real opportunities for value