Between 1996 and 2021, the average home price surged by 453%, reaching $1,095,475 in 2021 with a 7.08% compound annual growth rate. In Toronto, the median price for a single detached home in Q2 2023 hit $1,350,000. Over the last three decades, median incomes in Toronto have stagnated, while home prices have surpassed the million-dollar mark.
Even those with higher incomes find homeownership elusive due to the imbalance in supply and demand, particularly affecting first-time buyers.
Homeownership, once a milestone for family and stability, is now unattainable for the average person in Toronto. People face challenges finding affordable housing, leading to relocations or leaving their home cities for job opportunities.
Toronto has grappled with high costs and limited supply for years, exacerbated by the COVID-19 pandemic. Despite these challenges, positive changes are on the horizon!
Single Family to Legal duplex, triplex, or fourplex Conversion
After feeling excluded from the market for quite some time, many potential homebuyers in Toronto now see the Triplex Conversion Plan as an opportunity. The City of Toronto has approved a complete modification to the city’s residential zoning laws, allowing for multi-unit housing in all residential zones (RT, RS, and RD). Within these zones, this amendment allows for duplexes, triplexes, and fourplexes. The new standards allow for the development of multiplex building types inside the same building envelope as standalone residences.
The following are the main amendments proposed in the zoning by-law revision for multiplex conversion:
- Allow multiplex building types in RD, RS, and RT zones
- Align building depth, side yard setbacks, and main wall height regulations for all building types
- Exclude multiplex building types from FSI regulations
- Allow multiplexes up to 10 meters in height in zones where the current maximum height is less than 10 meters
- Allow up to two porches/decks/balconies per unit
- Remove restrictions on multiple front entrances for secondary suites
- Amend “U” values to permit up to 4 units in all residential zones
- Exclude multiplexes from “ST” values that specify the maximum number of stories permitted
Process and Local Bylaws in Your Project Journey
If your property falls under one of the RD, RS, or RT zones, the process may seem straightforward, but obtaining the permit might not be a walk in the park.
Step 1: Consult with an architect or designer to produce a design that complies with all applicable codes and local bylaws.
Step 2: Apply for a variance if necessary, presenting strong arguments to support the approval of the variance.
Step 3:Obtain the required building permits.
Step 4: Commence construction to modify the property to accommodate two, three, or even four units, considering separate systems for heating, electrical, and other building aspects as needed.
Why Would You Want to Convert Single-Family to Multifamily Properties?
Although there are a variety of reasons for renovations and why individual investors might decide to turn single-family homes into multifamily units, three main ones frequently stand out in most situations.
Increased Cash Flow
Multifamily properties typically have more potential for cash flow. Even while renting the entire property as a single unit may result in lower rents, a single investment in multiplex properties can yield a far larger overall income flow.
Increased Equity/Property value
Properties with multiple units are often considered to be worth more than those with only one unit. Converting single-family homes into multifamily units may raise the worth of your investment properties if you’re trying to find a strategy to add value.
Our Renovation Projects
More Units/Living Space
If you want to add more living space, you can build more apartments or divide your land instead of wasting time looking for, approving, and investing in new housing complexes. So if you are looking to move your parents closer to you, this can be your option.
Cheaper Initial Investment
For people who are new to real estate or have a tight budget, converting a single-family home can be a more affordable choice than purchasing an existing multi-family property because start-up expenditures are typically lower.
Turn your Toronto home into a duplex, triplex, or fourplex
A Toronto multiplex renovation project requires careful planning and budgeting, which should not be overlooked. Working with a general contractor with experience is crucial to ensuring successful execution.
Contact Milman Design Build if you’re exploring the eligibility of your home for a multiplex conversion. With extensive experience in converting single-family homes to multi-units like laneway suites, garage suites, basement suites, and adding multiplex conversions across Toronto, we are well-versed in city regulations and adept at navigating the permitting, designing, and building processes.