Designing for the long game
Condo-to-rental conversions are redefining how we think about housing delivery in the GTA.
Over the past two decades, condominium development has dominated Toronto’s housing landscape. It shaped our skyline, fuelled growth and, particularly in the last decade, became the city’s de facto rental supply through an investor-driven, shadow rental market. Today, that model is faltering. Rising construction costs, tightened financing, slower absorption and changing demographics have collectively forced a market reset. In its place, purpose-built rental and rental infill are emerging as the most viable path forward.
This shift has unlocked a critical opportunity: projects originally conceived, approved and designed as condominiums are being reconsidered as long-term rental communities. Condo-to-rental conversions are no longer outliers; they are quickly becoming a defining condition of the current development cycle. And they demand a fundamentally different way of thinking about design. With the right lens, architects can help developers navigate uncertainty and reposition stalled or struggling projects into resilient rental assets that respond to today’s market realities.
At its core, the difference between condominium and rental development is not tenure, it’s intent. Condos are largely designed to be sold before they are lived in. Rental buildings must perform every day, for decades. This distinction changes everything.
In a condominium, density and saleable square footage drive value. In rental, they often do not. A one-bedroom unit will typically rent for the same price whether it is 550 or 700 square feet, which means that the number of units and how well those unit perform matters more than square footage alone. Efficiency, livability and long-term performance matter far more than squeezing in additional units. When residents experience space in real life, not through a marketing floorplan, the shortcomings of overly compressed layouts become immediately apparent. As a result, successful rental conversions often start from the inside out. Unit mix, suite livability, daylight access and repeatability become the primary drivers of form – as indeed they should, rather than the other way around.
Across recent condo-to-rental conversion projects, several consistent patterns are emerging. First, repeatable suite types matter. Minimizing variation creates a consistency of quality, improves construction efficiency, simplifies and makes maintenance more predictable all while supporting long-term operations. Second, exterior bedrooms with access to daylight are becoming a non-negotiable expectation in a competitive rental market. Third, larger, better-proportioned rooms, rather than marginally smaller, more numerous units, support lower vacancy and stronger absorption over time.
These shifts often result in fewer suites per floor and, in some cases, broader, more bar-like building forms rather than compact tower plates. While this may run counter to long-standing planning preferences, our experience is that municipalities are increasingly recognizing the value of improved livability. In some cases, they are willing to support modest increases in height to offset reduced unit counts when projects clearly deliver better housing outcomes.
Amenity space has long been used as a sales tool in condominium projects: flashy, image-driven and often underused after occupancy. Rental buildings require a different approach. Here, amenities are less about spectacle and more about daily utility and social connection. Co-working lounges, shared laundry and social spaces, bookable rooms and flexible common areas all support community-building and resident retention. When designed well, these spaces contribute directly to operational success by fostering long-term tenancy rather than short-term appeal.
We are also seeing rental developers rethink leftover or “back-of-house” spaces as revenue-generating opportunities, including rentable storage and flexible bicycle rooms that can adapt over time. These moves improve both pro forma and building performance without compromising livability.
Another defining characteristic of rental conversion projects is uncertainty around long-term ownership. Some developers intend to hold assets indefinitely; others plan to stabilize and sell to institutional buyers within a defined fund lifecycle. In both cases, buildings must be future-ready. Institutional investors increasingly expect strong performance across sustainability, accessibility and durability metrics. This means that rental buildings must meet, not today’s standards, but those anticipated five or ten years from now. Higher energy performance targets, robust envelope systems, low-maintenance materials and durable finishes are no longer optional; they are prerequisites for long-term value.
Unlike condominium projects, where many decisions can be deferred until after presales, rental developments require earlier and more deliberate design resolution. Front-loading decision-making provides clarity of execution in leading design teams, reduces operational risk and ensures that buildings can perform as intended from day one.
Rental buildings are, by definition, long-lived. As demographics shift, so too must the housing they contain. Increasingly, developers are asking whether rental projects can accommodate larger households, multigenerational living, or future unit amalgamation. Strategic structural planning, thoughtful placement of services and modular thinking around suite layouts can allow buildings to evolve over time. The ability to reconfigure units without major structural intervention transforms adaptability into a long-term asset rather than a future liability.
We’ve spent decades working in housing of all types. While much of that work has been in the condominium sector, it has always operated against the backdrop of a rental “shadow market.” Many units were never truly designed for short-term ownership; they were implicitly shaped for long-term tenancy. And that history matters. It means that we’re uniquely positioned and have been a trusted partner for many years. It also means that rental thinking around layouts, durability and livability has long informed our work, even when the brief said “condo.” Today’s condo-to-rental conversions simply make that lens explicit.
As the GTA housing market continues to rebalance, these conversions will play a critical role in delivering much-needed supply. Done poorly, they risk becoming compromised assets. Done well, they can become some of the most resilient and liveable buildings in the city.
Toronto is maturing into a major global city where long-term renting is no longer an exception but a norm. In this context, condo-to-rental conversions represent more than a market correction. They signal a return to designing housing as infrastructure, not speculation.
For architects, this moment demands leadership. It requires understanding financial drivers as deeply as spatial ones, engaging early with feasibility and advocating for design decisions that prioritize longevity. Most importantly, it asks us to refocus on the people who will live in these buildings, not just buy them.
If the next decade is defined by rental-first development, the opportunity is clear: to build better homes, stronger communities and a more resilient and equitable city that elevates quality of life for everyone.
If you’re exploring a condo-to-rental conversion or reconsidering a rental-first strategy, now is the moment to engage design leadership early. These projects succeed or fail in the decisions made long before construction begins; decisions about unit livability, building performance, adaptability and long-term value. We work alongside developers from feasibility through delivery to help reposition projects with clarity and confidence. Our experience across both condominium and purpose-built rental housing allows us to anticipate risk, unlock opportunity and design buildings that perform over decades, not just cycles.