Why Three-Bedroom Homes Are Still King in Toronto's Slowing Real Estate Market
Even with Toronto’s real estate market off to a slow start this spring, one type of home is proving it’s still in high demand: the classic three-bedroom, single-family house.
Despite rising borrowing costs, buyer hesitation, and longer listing periods across the board, recent data from digital real estate platform Wahi shows that these family-sized homes — including detached, semi-detached, and townhouses — are selling faster than any other property type across the Greater Toronto Area (GTA).
And that’s saying something in today’s market.
What the Data Says
Wahi’s analysis of home sales in Q1 2025 reveals that three-bedroom single-family homes sold in just 23 days on average — significantly faster than both smaller two-bedroom homes and larger four-bedroom ones.
To put that into perspective:
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Condos are sitting on the market for about 36 days on average.
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Two-bedroom condos or houses are taking around 37 days to sell.
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Even three- and four-bedroom condos are averaging about 34 days on the market.
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But three-bedroom detached, semis, and townhomes? They're gone in just over three weeks.
What’s even more telling is that in 48 Toronto neighbourhoods, three-bedroom homes sold in two weeks or less. That’s a sharp contrast compared to only seven neighbourhoods where two-bedroom homes sold that fast, and 37 for four-bedroom houses.
Clearly, the three-bedroom home is still the gold standard for many Toronto families.
Why Are Three-Bedroom Homes So Popular?
The appeal of three-bedroom homes isn’t just a new trend — it’s a long-standing preference backed by buyer surveys. In fact, Wahi’s 2024 Great Canadian Dream Home Survey found that nearly two-thirds of Canadians still dream of owning a single-family home, with three bedrooms being the most popular configuration.
Why? It’s the sweet spot for many families. A three-bedroom home offers:
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Enough space for parents, kids, and maybe a home office.
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A manageable footprint that’s often more affordable than larger homes.
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A better resale value, thanks to strong and consistent demand.
For many buyers, it strikes the right balance between space and price. It’s not too big, not too small — it’s just right.
But There’s a Catch: Scarcity
Even though demand is strong, the supply of family-sized homes isn’t keeping up. According to housing policy experts at Toronto Metropolitan University and the Missing Middle Initiative, a growing number of buyers are leaving the GTA altogether in search of larger, more affordable homes elsewhere in Ontario.
This shortage of accessible, family-friendly housing in urban centres like Toronto is pushing families to expand their home search into more suburban or rural markets — places where their dollar goes further and more spacious homes are available.
The irony? While demand remains strong, builders are still delivering a high volume of smaller condos, especially in the city core, where land is tight and zoning for “missing middle” housing (like duplexes and low-rise townhomes) remains limited.
Condos: Slower to Sell, Especially Smaller Units
While single-family homes continue to move, condos are lagging behind. In Q1 2025, the average condo took 36 days to sell. Smaller units — those with two bedrooms or fewer — took the longest at 37 days. Even the more spacious three- and four-bedroom condos were slower to move, taking about 34 days on average.
This signals a few things:
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Condo supply may be outpacing demand.
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Buyers are more focused on space and privacy — things condos typically lack.
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Rising maintenance fees and higher borrowing costs may be deterring first-time buyers from entering the condo market.
What This Means for Buyers and Sellers
If you’re a buyer looking for a three-bedroom single-family home in a popular GTA neighbourhood, be ready for competition. Homes in this category are still moving quickly, and bidding wars — while not as extreme as in 2021 or 2022 — are still a real possibility in hot spots.
On the other hand, if you’re a seller with a three-bedroom detached or semi in a desirable area, you might be in the best position you’ve been in for months. While overall sales volumes may be down, demand for your type of home hasn’t cooled.
For those looking to buy or sell a condo, or smaller/larger homes, the pace is slower — which isn’t necessarily bad. This could be a strategic opportunity to negotiate better terms, avoid bidding wars, and take a bit more time to make the right move.
Final Thoughts
The GTA housing market in 2025 is a mixed bag — slower overall, but still competitive for the right properties. And what stands out loud and clear is that three-bedroom, family-sized homes are still the MVPs of the market.
Whether you’re buying, selling, or simply watching from the sidelines, understanding what types of homes are in demand — and which ones are moving slower — can help you make smarter decisions in today’s ever-changing real estate landscape.
Need help navigating the market or planning your next move? Reach out to a real estate professional who knows your neighbourhood and can help you act quickly when the right opportunity comes along.