During the 1990s Canadian real estate, residential and commercial, endured a prolonged slump. After a decade of rapidly escalating prices and increasing speculation the market collapsed in 1989. Across Canada prices fell by as much as 30 percent. Toronto was one of the markets hardest hit. However, it has also been one of the quickest to recover and its recovery has been extremely strong in comparison to other major metropolitan regions. This paper identifies four factors in the recovery of the Toronto real estate market: The city’s quality of life, its strong economy, its location and its continuing appeal to immigrants.