Politics
Kensington Market Zoning Referendum: Effects on Local Commercial Leases and Housing Supply
The ballot measure would permit increased building heights on select blocks, altering costs for market vendors and availability of rental units for area households.
How we reported this
The City of Toronto placed a zoning bylaw amendment on the October 2026 municipal ballot that would allow buildings up to six storeys on certain commercial corridors inside the Kensington Market Heritage Conservation District.
City planning records show the change targets 12 blocks bounded by College Street, Spadina Avenue, Dundas Street West and Bathurst Street. The amendment responds to provincial housing targets set in 2025 that require municipalities to add 15,000 units annually within existing urban boundaries.
Consequences for daily costs and operations
Leaseholders operating produce stalls and restaurants on Augusta Avenue would face renewed negotiations if property owners pursue redevelopment. Several buildings currently assessed at three storeys could add residential floors above ground-level retail. Local advocates note that commercial rents in the district averaged $48 per square foot in the most recent assessment roll. New upper-floor units could generate additional revenue streams for landlords, yet small operators with month-to-month agreements may absorb higher base rents once leases renew.
Residents in the 2,800 rental households inside the same boundaries would see new units come onto the market only after construction permits are issued. The legislation states that 30 percent of any new residential floor area must meet affordability definitions tied to 2025 average market rent levels. Tenants in existing low-rise apartments would not receive direct rent reductions under the measure.
Allocation of new revenue and service changes
Policy analysts point to the City of Toronto 2026 capital budget, which earmarks $4.2 million for streetscape upgrades along Baldwin Street and Kensington Avenue if the referendum passes. Those funds would cover expanded waste collection points and lighting, services used daily by the estimated 12,000 residents and the 800 licensed street vendors who operate in the area on peak market days. Property owners who redevelop would pay development charges that feed into the same fund, while non-redeveloping businesses would continue paying the existing business tax rate.
Voters will decide the measure during advance polls that open 10 October 2026 at the Kensington Community School polling station. Results are scheduled for release the evening of 26 October. If approved, the first rezoning applications could reach the Toronto and East York Community Council by March 2027.