Toronto’s First-Time Homebuyers: Activity Stirs as Entry Points Shift in 2026

More first-time buyers have returned to Toronto’s property market this summer, particularly targeting east-end neighbourhoods and the downtown condo strip, according to new data from the Toronto Regional Real Estate Board (TRREB) released Friday.

This uptick in entry-level purchasing comes after months of stagnation, as buyers faced a challenging cocktail of elevated interest rates and record-high prices. The renewed momentum matters: nearly half of all residential sales in the GTA so far in 2026 have involved buyers purchasing their very first home, a share not seen since before the pandemic. Industry observers say first-time buyers inject much-needed energy and liquidity into the lower tiers of a market still dominated by immigration-driven demand.

East End and Downtown: Entry Points Evolve

Buyers hunting for their first home are increasingly setting their sights east of the Don River, particularly around Gerrard East and Danforth Village. Two-bedroom houses on streets like Coxwell Avenue and Monarch Park Avenue have seen bidding activity pick up, with several properties selling for between $900,000 and $1.1 million in June, agents confirmed. Further west, the once-favored High Park and Roncesvalles pockets now routinely see sale prices well above $1.3 million, leaving many hopeful buyers priced out.

The downtown condo sector is drawing renewed attention as well. In buildings along Front Street and around Fort York Boulevard, starter units-mostly one-bedroom condos-are moving briskly for $695,000 to $750,000, says analysis by Royal LePage. Condo board directors at CityPlace reported a 20% jump in new buyer occupancy since March, reversing the slump seen over much of 2025.

Affordability: Still a Challenge, But Some Relief

According to TRREB figures, the average price for all home types in Toronto proper in June stood at $1.1 million, up just 2% from the same time last year-a far slower pace of increase than during the post-2020 boom. For condos, the city-wide average came in at $728,000, virtually flat from May and only up 1.5% year-over-year. The Bank of Canada’s five-year fixed rate hovered near 5.1% as of July 1, making affordability a persistent concern. That said, first-home buyers leveraging the First Home Savings Account (FHSA) program and the City of Toronto’s Home Ownership Assistance Loan have reported more manageable down payment hurdles. By late June, Scotiabank confirmed a record monthly uptake on newly opened FHSAs among GTA customers.

Neighbourhoods like Leslieville and East York, where a decade ago starter homes sold for well under $700,000, now see entry points at $900,000 or above for freeholds, forcing many buyers to consider condos as a first rung. There’s also been a marked increase in parents gifting or loaning down payments, particularly on deals around The Danforth and St. Lawrence neighbourhoods, brokers said.

Looking ahead, expectations of a possible rate cut by the Bank of Canada in the fall could further encourage first-time buyers who have hesitated so far. Lauren Lucas, a mortgage planner with MPC Toronto, said July pre-approvals are on track for the highest tally since 2022. Prospective buyers are advised to research commuter-friendly areas beyond the city core-such as Scarborough Village or the future Ontario Line corridor-where price growth has lagged. While fierce competition persists for starter homes south of Bloor, first-timers willing to consider new locales and property types may still find a foothold before this cycle turns again.