New Economic Report Underscores Urgency to Revitalize Downtown Toronto
June 5, 2025 (Toronto) — Three years after the end of COVID-19 restrictions, downtown Toronto faces major challenges that affect its livability, economic vitality, and appeal. The lasting impacts of the pandemic, a shift toward remote and hybrid work, rising cost of living, public safety concerns, and worsening congestion are negatively impacting the core’s role as a vibrant, accessible hub for residents, workers, and visitors alike. As the city navigates these issues, revitalizing and adapting its downtown is crucial to ensuring Toronto's continued growth and resilience.
A new report from the Centre for Urban Research and Land Development at Toronto Metropolitan University (TMU), in collaboration with the Real Assets Area at York University's Schulich School of Business, documents the key challenges in a comprehensive economic analysis of downtown Toronto from 2019 to 2024. The report calls for immediate and strategic action to restore downtown Toronto’s vibrancy and global competitiveness.
“The crucial role of the downtown and the importance of having a robust, vibrant, welcoming hub for all does not seem fully appreciated. Politicians at all levels of government need to understand that perceptions about downtown Toronto impact residents’ and visitors’ perception of the city as a whole and even the region,” said Frank Clayton, senior research fellow at the Centre for Urban Research and Land Development.
The report highlights downtown’s critical role in Canada's economy. In 2023, it generated $117.7 billion in GDP—43.7% of the city’s total. It also contributed $39.5 billion in tax revenues, the majority of which flowed to provincial and federal governments. Despite this noteworthiness, downtown Toronto’s economy remains fragile, with office vacancy rates rising to 18.2% and Toronto’s global financial centre ranking falling from 7th to 23rd since 2019.
While downtown boasts rising residential population, housing construction and resurging visitor numbers, challenges remain. Public safety on the TTC, traffic congestion and homelessness threaten to stall further recovery.
The report emphasizes that restoring downtown’s vitality will require a coordinated effort focused on seven key policy areas: improving TTC rider experience, enhancing safety and cleanliness, enhancing the efficiency of vehicle access and encouraging the use of GO Transit, supporting vulnerable populations, enhancing access to the Toronto Islands green space, empowering an existing downtown body to help execute recommendations for a vibrant downtown, and securing investment from upper levels of government.
The report also found targeted investments in infrastructure, safety, attractiveness, cleanliness and accessibility are essential to rebuild public confidence and make downtown Toronto more welcoming for workers, residents and visitors.
Frank Clayton, senior research fellow at the Centre for Urban Research and Land Development, and Jim Clayton, Timothy R. Price Chair in Real Estate and Infrastructure, Schulich School of Business, York University, are available to discuss the report’s findings and how to strengthen Toronto’s downtown.
Read the report: Downtown Toronto: Economic Importance, Challenges and Actions to Revitalize.
For Media Inquires:
Jim Clayton, Ph.D.
Timothy R. Price Chair in Real Estate and Infrastructure
Schulich School of Business
York University
jclayton@schulich.yorku.ca (external link)
Frank Clayton, Ph.D.
Senior Research Fellow
Centre for Urban Research and Land Development (CUR)
Toronto Metropolitan University
frank.clayton@torontomu.ca
About the Centre for Urban Research and Land Development
The Centre for Urban Research and Land Development (CUR) is an expert-led research Centre, dedicated to formulating policies and solutions to address the concerns confronting urban growth and change within the Greater Golden Horseshoe, as well as educating students to take leadership roles in these pursuits. The intent of CUR is to focus on the economic impacts and aspects of urban issues and policy alternatives in an effort to have economic analysis be central to the formulation of urban policy decisions.
About Toronto Metropolitan University
A world-class research institution and Canada’s leader in innovative, career-oriented education, TMU offers more than 60 undergraduate programs, over 65 graduate programs, and 80 continuing education certificate programs. The university boasts ten faculties, including the Lincoln Alexander School of Law and the new TMU School of Medicine, which is launching in September 2025. Established in 1948, TMU is home to nearly 48,000 students, including 2,900 Master’s and PhD students, 4,000 faculty and staff, and over 245,000 alumni worldwide. For more information, visit torontomu.ca.