Is real estate really the place to park your money? A hard look at the numbers

Toronto’s housing story in June shows a city aiming to balance growth and affordability—and asks whether real estate remains the best way to invest money. In June, Toronto City Council approved more than a dozen housing development proposals, including the redevelopment of the historic Coach Terminal and a new master-planned project on the Cineplex Queensway site. Together, these projects are expected to add nearly 10,000 new housing units to the city’s supply.

That boost in housing stock comes at a time when Toronto fell short of its 2024 housing target. The city built 20,999 new homes instead of the 23,750 planned. Despite this, the province awarded Toronto \$67.2 million from the Building Faster Fund for achieving 88 per cent of its goal.

Developers and planners argue that investments in real estate—especially large-scale, transit-connected developments—can yield solid returns. These projects create new units, support local businesses, and often include amenities like parks or community spaces. Mixed-use designs and revamped sites help make neighborhoods more walkable and vibrant, which may increase property values over time.

But there are downsides. Even new developments take time to deliver results. Building approvals, especially for major projects, can stretch out beyond two years. That delay means money tied up in development isn’t liquid—investors may have to wait long before seeing gains. Additionally, the risk of policy or economic shifts can affect timelines and costs.

Some people argue that other investment options—like stocks, bonds, or low-cost rental opportunities—can compete with real estate. While property has the advantage of physical value and potential for steady income, it comes with upkeep costs, uncertainty in pricing, and fewer quick-exit options when needed.

So, is real estate still the best place to park your money? It depends on what you value. If you want a tangible asset, long-term growth, and are okay with delayed liquidity, it could be a strong choice. But if you need flexibility, lower entry point, or faster returns, other investment paths might be smarter. As Toronto adds thousands of new homes, the decision should weigh both the numbers on the page and how they fit with your financial needs.