In November 2025, Toronto City Council voted to change the zoning rules for residential neighbourhoods. It’s the most significant change to Residential Zoning in almost 70 years.
The changes now allow a broad range of businesses to operate from residential properties like single family homes or apartment buildings.
These businesses include retail stores, restaurants, take-out establishments, cannabis and vape stores, personal services, gyms, offices and studios. Patios are also allowed.
Residential property owners or developers no longer have to apply to the Committee of Adjustment for a variance from the residential by-law because the by-law itself has been changed to allow such businesses.
City Planning described this historic change as a way to support small, local businesses and bring goods and services closer to residents.
However, the changes also raise questions about where new businesses are needed in Toronto, how such businesses will impact the quality of life for neighbours, the future of residential zoning, and why residential properties need to be converted to commercial uses during a housing crisis.
What properties are affected?
The new zoning rules do not apply to every residential property in Toronto.
There are two main areas affected: Major Streets and Neighbourhood Interiors
Major Streets
“Major Street” is a relatively new designation. It does not mean only large commercial roads as commonly understood. “Major Streets” also include many residential streets that only have residences on them or are mostly residences.
Some “Major Streets” have also been excluded from the new by law due to requests from Councillors of certain wards.
To find out which “Major Streets” are affected, click here. [NEW PAGE/LINK]
To read the residential by-law changes with regard to “Major Streets” click here. [NEW LINK]
By-Law 1509-2025
Neighbourhood Properties
More limited retail and restaurant permissions also apply to certain properties within “Neighbourhood Interiors” in the Toronto and East York Districts.
To find out which properties are affected, click here. [NEW PAGE/LINK]
To read the residential by law changes with regard to Neighbourhood Properties, click here.
Posted on NRS page – by law 1507-2025
Neighbourhood Retail and Services
What types of businesses are allowed? → [NEW PAGE/LINK]
Which Major Streets are affected? → [NEW PAGE/LINK]
Which neighbourhood properties are affected? → [NEW PAGE/LINK]
COTRA’s Perspective
Why residents are concerned? → [EXISTING PAGE/LINK]
What Toronto residents told us – survey results → [EXISTING PAGE/LINK]
What COTRA recommended to City council → [EXISTING PAGE/LINK]
Fact Check: City Planning’s claims → [NEW PAGE/LINK]
COTRA’s Responses to Planning Committee’s questions → [EXISTING PAGE/LINK]
COTRA Fact sheet → [Moved to resource section –EXISTING LINK]
Council & Resources
What City council approved → [EXISTING PAGE/LINK]
Resources → [EXISTING PAGE/LINK]
Latest Posts
- Major Streets – what council excluded (and what It rejected)Because certain councillors requested it for their specific wards, Council approved the exclusion of specific Major Street segments from … Read more
- What City Council Approved (November 13–14, 2025)City Council made major changes to the proposed Neighbourhood Retail & Services zoning amendment. The final version is a … Read more
- Why are residents concerned?For the first time, the City’s zoning rules now allow businesses to operate inside residential homes without any public … Read more
- What COTRA recommended to City CouncilThe Neighbourhood Retail & Services (NRS) proposal was the largest overhaul of residential zoning Toronto has seen in seventy … Read more
- What’s Being Rezoned: Inside the City’s Neighbourhood Retail & Services PlanCity Council has approved a major zoning change that divides residential areas into two new categories: Both categories allow … Read more
- COTRA Submission to City CouncilThe Neighbourhood Retail and Service (NRS) proposal represents the most significant change to Toronto’s residential zoning in seventy years. … Read more