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.
On designated streets, a broad range of businesses can now operate from residential properties like single family homes or apartment buildings, including restaurants, bars, cafes, cannabis stores, all with patios … plus many other kinds of businesses with patios.
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]
To read the residential by-law changes with regard to “Major Streets”, see City of Toronto By-law 1509-2025; click [HERE]
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]
To read the residential by law changes with regard to Neighbourhood Properties, see City of Toronto By-law 1507-2025; click [HERE]
What Types of Businesses are Allowed?
The changes allow a wide range of commercial businesses to operate from certain residential properties on designated streets — including restaurants and take-out establishments, retail stores, cannabis shops, pet grooming, dry cleaning, offices, fitness facilities, studios, workshops and many more.
To see which businesses are allowed click [HERE]
Quick Overview?
We have prepared a one-page fact sheet that describes what changed, COTRA survey results and key concerns of our residents.
Read the fact sheet [HERE]
Explore More
What Toronto residents told us – survey results
What COTRA recommended to City council
What the City said–and what the evidence shows
COTRA’s responses to Planning Committee’s questions
Council & Resources
What City council approved → [EXISTING PAGE/LINK]
Latest Posts
- What the City said – and what the evidence showsCity Planning presented several reasons for expanding commercial permissions in residential neighbourhoods. COTRA reviewed the City’s reports, data, maps … Read more
- 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
- 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
- COTRA’s responses to Planning and Housing Committee’s questionsWe wanted to clarify several points raised about our survey findings and the interpretation of data in the Planning … Read more
- Planning Committee Has Voted For Some ChangesProposal Goes To Council November 12 For Approval At the October 30 Planning and Housing Committee meeting, COTRA and … Read more