Executive Summary

The real estate and development landscape in Markham, Ontario, is undergoing a significant transformation driven by a confluence of robust policy updates, substantial infrastructure investment, and shifting financial dynamics. The City's 2024 budget signals a strong commitment to growth, allocating a total of $590.5 million, with a $118.3 million capital budget aimed at both expanding and maintaining infrastructure. This is complemented by a proactive strategic planning framework, highlighted by the enactment of a new city-wide Comprehensive Zoning By-law in early 2024 and an ongoing Official Plan review. These regulatory changes are designed to increase density, particularly around transit corridors, and streamline development processes to meet provincially mandated growth targets.

Financially, developers face an evolving cost structure with updated Development Charges (DCs) from both the City and York Region. However, these costs are partially offset by significant government incentives aimed at spurring housing construction. Most notably, Markham secured $58.8 million from the federal Housing Accelerator Fund (HAF), which is intended to fast-track over 1,600 housing units in the next three years by supporting initiatives like as-of-right zoning for four units and reducing parking minimums. This infusion of capital, coupled with regional DC deferral programs for rental and affordable housing, creates a nuanced but opportunity-rich environment for targeted development.

The long-term value proposition for investment in Markham is fundamentally anchored by massive, multi-billion dollar infrastructure projects. The Metrolinx GO Expansion on the Stouffville line, which aims to provide 15-minute, two-way, all-day service to Unionville, and the planned Yonge North Subway Extension are set to revolutionize transit connectivity. These projects will act as powerful catalysts for transit-oriented development, unlocking significant land value and attracting a new wave of residential and commercial growth along these key corridors. The 2024 capital plan further supports this with major investments in road widening, trails, and community facilities.

In synthesis, Markham presents a compelling case for strategic real estate investment. While development costs remain a key consideration, the combination of a modernized and pro-density regulatory environment, substantial government incentives to accelerate housing, and transformative transit infrastructure projects creates a clear path for future growth. The most significant opportunities lie in transit-oriented, higher-density residential projects, particularly rental and affordable housing, which align with both municipal strategic goals and available incentive programs. Investors and developers who can navigate the updated policy and financial landscape are well-positioned to capitalize on the city's long-term vision and infrastructure-led expansion.

2024 Total Budget

$590.5M

2024 Capital Budget

$118.3M

Housing Accelerator Fund

$58.8M

New Zoning By-law Enacted

Jan 2024

2024 Capital Budget Allocation

Strategic & Regulatory Framework

This section outlines the key policy initiatives and regulatory updates shaping Markham's growth. The city is actively modernizing its planning framework to align with provincial growth mandates, increase housing supply, and promote sustainable, transit-oriented communities. These changes are critical for developers to understand as they directly influence land use permissions, density targets, and the overall approvals process.

Comprehensive Zoning By-law Review (By-law 2024-19)

A landmark regulatory update, the new city-wide Comprehensive Zoning By-law (CZBL) was enacted by Markham Council on January 31, 2024. This by-law consolidates and modernizes 46 parent zoning by-laws, some dating back to the 1950s. The primary objective is to align the City's zoning with the 2014 Official Plan, provincial policies, and the York Region Official Plan. Key changes are aimed at simplifying regulations, creating consistency, and facilitating development that meets current and future needs. For developers, this provides a more predictable and streamlined regulatory environment. The Ontario Land Tribunal (OLT) approved the by-law on a city-wide basis as of September 19, 2024, for all lands not subject to site-specific appeals.

Official Plan Review

Markham is currently undertaking a comprehensive review of its Official Plan, which was last approved in 2014. Mandated by the Planning Act, this review ensures the City's land-use policies conform to the latest Provincial Policy Statement and manage growth to 2051. The review process began with introductory meetings in early 2024. A key component of the review will be an Employment Study to assess lands for transit-supportive, mixed-use development while protecting job creation. This forward-looking process will redefine growth nodes, density targets, and land use policies across the city, directly impacting long-term development potential.

Transit-Oriented Development (TOD) Strategy

Underpinning both the Zoning By-law and Official Plan reviews is a strong focus on Transit-Oriented Development. Policy and zoning changes are being specifically crafted to encourage higher-density, mixed-use development around major transit stations, including existing GO stations and future stations on the Yonge North Subway Extension. This strategy is critical to achieving provincial growth targets and is supported by federal incentives like the Housing Accelerator Fund, which prioritizes transit-proximate housing.

Financial Landscape: Costs & Incentives

Understanding the financial environment is crucial for assessing project viability in Markham. This section details the current Development Charge (DC) structure set by both the city and the region, as well as the significant federal, provincial, and local incentive programs available to developers. These programs are designed to mitigate costs and encourage the development of specific housing types, such as affordable and rental units.

Development Charges (2024)

Development Charges are a primary cost factor and are levied by both the City of Markham and York Region to fund growth-related infrastructure. Rates are updated regularly. As of July 1, 2024, the combined charges represent a significant upfront cost. The chart illustrates the total estimated charges for different types of development, combining City, Regional, and Education DCs. These fees are essential for funding services like roads, water, transit, and community facilities required to support new development.

Major Housing Incentives

Federal Housing Accelerator Fund (HAF)

Markham secured $58.8 million from this federal program. The funding is designed to fast-track 1,640 housing units over three years and support over 6,600 new homes in the next decade. Key local initiatives supported by HAF include:

Permitting four residential units as-of-right city-wide.
Increasing density around major transit stations.
Offering incentives for additional residential units (ARUs).
Reducing minimum parking requirements for new developments.

York Region DC Deferral Programs

To encourage specific types of housing, York Region offers several DC deferral programs. These programs allow developers to postpone payment of regional development charges, improving project cash flow. Key programs include deferrals for:

Non-Luxury and purpose-built rental buildings.
Affordable housing projects.
Large office buildings to promote employment growth.

Major Infrastructure & Capital Plan

Markham's future growth is underpinned by unprecedented investment in public infrastructure. This section highlights the transformative transit projects and key local investments from the 2024 Capital Budget. These projects are not only enhancing connectivity and community services but are also creating significant uplift in land value and setting the stage for major new development opportunities, particularly along transit corridors.

Transformative Transit Projects

Metrolinx GO Expansion (Stouffville Line)

This is one of the most significant transit upgrades in the region's history. The project will electrify the corridor and introduce two-way, all-day GO train service with frequencies of 15 minutes or better between Unionville GO Station and Union Station. This will transform the line from a commuter-focused service to a high-frequency urban transit spine, dramatically increasing accessibility and making surrounding areas prime locations for high-density, transit-oriented development.

Yonge North Subway Extension (YNSE)

This project will extend TTC's Line 1 subway service approximately 8 kilometres north from Finch Station into Vaughan, Markham, and Richmond Hill. With five planned stations, the YNSE will provide a seamless subway connection to downtown Toronto for thousands of residents and workers. York Region has committed $1.12 billion to this Metrolinx-led project. The subway is a major catalyst for development, with significant growth planned around the future station areas.

2024 Capital Budget Highlights ($118.3M)

The 2024 Capital Budget makes strategic investments in local infrastructure to support both existing communities and future growth. Approximately 60% is dedicated to maintaining assets in a state of good repair, while 40% is for new infrastructure. Key projects include:

$28.8M: Elgin Mills Road Widening (Property Acquisition)
$23.7M: Markham Village Flood Control Construction (Advanced Approval)
$8.2M: Don Mills Channel stormwater management pond
$4.5M: City-wide Sidewalk Program
$3.7M: City-wide Asphalt Resurfacing
$2.7M: Markham Centre Trails Construction & Design
$1.6M: Cornell East & West Parkettes

Development Application Trends & Analysis

Analyzing recent development applications provides direct insight into market activity and future supply. While a comprehensive database of all individual applications is extensive, the City of Markham and York Region provide tools to track this activity. The key trend observed over the past 12-18 months is a significant focus on high-density residential and mixed-use projects, particularly within designated growth areas and near transit infrastructure. This aligns directly with the city's strategic policy direction.

Key Application Types & Locations

High-Rise Residential: A large volume of applications are for Official Plan and Zoning By-law Amendments to permit high-rise residential towers, concentrated in areas like Markham Centre, the Highway 7 corridor, and near major GO Stations (e.g., Unionville, Mount Joy).
Low/Mid-Rise Infill: There is steady activity for medium-density infill projects, including stacked townhomes and mid-rise buildings, in established neighbourhoods undergoing intensification.
Industrial & Commercial: Major industrial applications are focused on logistics, warehousing, and advanced manufacturing facilities, primarily in designated employment lands near the 404 and 407 highways. Many of these are speculative builds, indicating strong confidence in the industrial market.
Plans of Subdivision: New applications for large-scale, single-family home subdivisions are less common and are generally located in the remaining greenfield areas of the city, such as the northern expansion areas.

Monitoring Development Activity

Developers and investors can monitor active applications in near-real-time using public-facing portals. These tools provide details on application status, supporting documents, and staff contacts.

City of Markham MappIT Portal York Region Development Dashboard