Ontario's new PPS rewrites the rules for where and what gets built. Here's what every investor needs to know to position ahead of the market.
The Provincial Policy Statement is Ontario's master rulebook for all land use planning decisions. Every city, town, and township must follow it. The 2024 edition is the most significant rewrite in decades — combining two previous documents and shifting power firmly toward density, transit, and speed.
Municipalities can no longer simply say no to density. The PPS forces communities to permit housing near transit, employment, and services — whether they like it or not.
Ontario has set binding housing targets for 50 large municipalities. Miss them and face consequences. This creates urgency and streamlines approval timelines — a direct investor benefit.
The policy mandates "transit-oriented communities" — higher density housing within 500–800m of major transit. This concentrates growth and value in highly predictable locations.
The PPS doesn't treat all places or property types equally. Here's the honest breakdown of what's set up to outperform — and what's likely to stagnate.
Under PPS 2024, growth pressure isn't uniform. Here's how the major markets stack up for residential investors over a 3–7 year horizon.
| Community | Tier | Why it matters under PPS 2024 | Best plays |
|---|---|---|---|
| Toronto (core + inner suburbs) | Warm | Already dense; massive approval backlog but less upside surprise. TOC rules do help unlock new sites. | Pre-construction mid-rise near new subway stops (Ontario Line, Eglinton) |
| Mississauga / Brampton | Hot | Hurontario LRT corridor, large housing targets, underbuilt relative to population growth. | Mid-rise condo or rental near LRT stops, missing middle conversions |
| Hamilton | Hot | LRT (reapproved), large target, relatively affordable land base, strong rental demand. | LRT corridor land, older SFH for triplex conversion, purpose-built rental |
| Kitchener-Waterloo | Hot | ION LRT, tech sector anchor, GO expansion planned. Policy-aligned and supply-constrained. | Mid-rise near ION stops, student rental near universities |
| Guelph | Hot | High housing target relative to size, growing employment base, GO service improving. | Infill, missing middle, purpose-built rental |
| Barrie | Warm | GO expansion and housing targets in place. More affordable than GTA; watch approval pace. | Near GO station, mid-density rental |
| Oshawa / Durham Region | Hot | Rapid population growth, GO expansion, housing target municipality, still affordable. | Missing middle near GO, pre-construction townhomes |
| Ottawa | Warm | Stage 2 LRT open, transit-oriented policy baked in. Slower growth than GTHA but steady. | Transit-adjacent purpose-built rental, near future LRT stages |
| Rural / Greenbelt Adjacent | Avoid | Greenbelt remains protected. Rural residential policy tightened. Limited upside for speculators. | Income properties only; don't buy on development optionality |
| Cottage Country (Muskoka etc.) | Caution | Natural heritage protections strengthened. Development options more limited than pre-PPS. | Buy for lifestyle, not capital appreciation narrative |
Not all property types will respond equally to PPS 2024. Here's our read on each category.
As-of-right permission in most residential zones is a game-changer. Existing SFH on larger lots can be converted or redeveloped for 3–4 units without lengthy rezoning.
PPS explicitly prioritizes rental housing. These projects see faster approval queues, municipal incentives, and HST rebate advantages. Institutional money is already flooding in.
Accessory dwelling units are now permitted provincially across Ontario. Adding a garden suite to a property can significantly increase cash flow and overall land value.
Strong demand from families priced out of detached. Best near transit where PPS mandates density. Avoid car-dependent suburban locations where long-term fundamentals weaken.
PPS accelerates approvals but the condo investor market is softer near-term due to rising costs and rate sensitivity. Focus on transit-adjacent, rental-permitted buildings.
PPS directs growth away from sprawl. New greenfield subdivisions will be slower to approve and face more infrastructure cost burden. Weakest policy tailwind of any category.
Ontario's goal is 1.5 million new homes by 2031. PPS 2024 is the primary policy lever to get there.
Fifty Ontario municipalities have legislated housing targets they must hit or face provincial intervention.
Properties within 500–800m of major transit stations are in the highest-density policy zone under PPS.
Most residential lots in targeted municipalities can now accommodate 3–4 units without rezoning applications.
Before committing to any Ontario real estate investment, run your target property through these PPS-informed filters.