Toronto multiplex policy aimed at boosting housing welcomed by observers
A new policy allowing single family homes to be converted into low-rise multiplexes in Toronto is being hailed by observers as a welcome move, although experts warn it won't make housing more affordable in Canada's most populous city right away.
Toronto councillors voted in May to amend a zoning bylaw to allow up to four residential units in a multiplex with the aim of increasing housing supply to meet skyrocketing demand.
The move could transform up to 70 per cent of what's known as the city's "yellowbelt," where only one single family dwelling per lot was previously permitted.
Experts say the change has the potential to address a severe housing shortage but caution that it may not tackle housing unaffordability -- at least in the short term.
"Increasing density is good but it isn't definitely the answer to everything," said Penelope Gurstein, the co-director at the Housing Research Collaborative, which studies affordable housing strategies.
- Download our app to get local alerts on your device
- Get the latest local updates right to your inbox
The new multiplex policy will increase land values, she said, and steps must be taken to ensure some level of affordability.
Gurstein, who is also a professorat the University of British Columbia, suggests allocating at least one unit as affordable housing in new multiplexes. She also said the city should work to expand availability of social housing and purpose-built rentals.
Toronto has long made headlines for its high housing costs.
April statistics from the Toronto Regional Real Estate Board show the average price of a home in the city was $1,153,269, roughly four per cent higher than the $1,108,499 the average buyer paid in March.
April's supply level was much lower than the city has seen in the past, TREB said. New listings for the month totalled 11,364, down 38.3 per cent from a year ago.
Karen Chapple, the director of the school of cities at the University of Toronto, said the new multiplex policy follows similar moves by cities that include Vancouver, Minneapolis and Portland.
"Every city that has done this ... has been really happy with the results," she said, noting that more work is still needed to make a multiplex policy a success.
"It is just a start," Chapple said, explaining that the policy alone isn't enough if developers and the labour market aren't ready to take advantage of it.
Chapple suggested making it easier for individual homeowners to become what she called "citizen developers."
Giving those individuals access to capital, pre-approved templates for plans and education on how to convert homes to multiplexes could help, she said.
"To make it affordable by design, to make it so cheap to construct that people will charge less rent ... that is what has happened in other areas of the world, and that has worked pretty well," she said.
"The other thing to do is to make loans available to low-income homeowners."
Prime Minister Justin Trudeau took note of the new policy during a recent speech in Toronto.
"Innovations like this unlock supply and keep our neighborhoods dynamic but most importantly, they create the homes the Canadians need," he told a gathering of municipal leaders last week.
David Amborski, an urban planning professor at Toronto Metropolitan University, said the policy will have a "positive effect" on the housing market in the long run by increasing supply and providing more choice in housing type and location.
Prices, however, will still be based on market conditions, he noted.
"People are going to price their product at the market price," he said.
Population in parts of the "yellowbelt" have been dwindling for years, Amborski added, and increasing density in some neighbourhoods could revive them while employing underutilized infrastructure.
But not everyone is thrilled with the multiplex move.
Coun. Stephen Holyday, who voted against the policy, said new multiplexes will create tensions within neighborhoods and drive away the dream of owning a detached home for some -- without making housing affordable for others.
"If you look deeply into the proposals, you will find out that you can build a very, very large multiplex unit, next to a detached home … that is going to create friction within neighborhoods," he said.
The policy could put individual homebuyers at disadvantage against investors and developers who may outbid families to buy detached homes and make sizeable profits by converting them into multiplexes, Holyday said.
"The cost will become higher to have a detached home because the intrinsic value of the land is higher because of its rental potential," he said, noting that developers building multiplexes could also charge "handsome" rents.
Industry insiders say Toronto's need for more housing outweighs those concerns.
Anu Joshi, a Toronto realtor, said the policy is a good move because it targets housing supply.
While many homeowners may not want to construct a multiplex right away, or have the financial means to do so, there are no longer any legal barriers for those interested in expanding their properties, she said.
"The bottom line is that there are too many people and not enough housing," she said. "This is definitely a welcome measure."
This report by The Canadian Press was first published June 1, 2023.
CTVNews.ca Top Stories
Stamp prices rise for the third time in five years amid financial woes for Canada Post
Canada Post is increasing stamp prices for the third time since 2019, a move the Crown corporation says is a "reality" of its sales-based revenue structure.
Italy's white-collar mafia is making a business killing
Italy's mafia rarely dirties its hands with blood these days. Extortion rackets have gone out of fashion and murders are largely frowned upon by the godfathers.
The story of how a B.C. man found his birth mother
After his adopted parents died, Dave Rogers set out to learn more about his birth mother. DNA results and a little help from friendly strangers would put him on a path to a small town in England.
WATCH Avian flu: Risk to humans grows as outbreaks spread, warns expert
H5N1 or avian flu is decimating wildlife around the world and is now spreading among cattle in the United States, sparking concerns about 'pandemic potential' for humans. Now a health expert is urging Canada to scale up surveillance north of the border.
Trump fined US$1,000 for gag order violation in hush money case as judge warns of possible jail time
The judge presiding over Donald Trump's hush money trial has fined him US$1,000 for violating his gag order and sternly warned the former president that additional violation could result in jail time.
Summer forecast: What to expect as El Nino weakens
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
When grief and AI collide: These people are communicating with the dead
AI tools can offer recommendations, answer questions and 'talk' with users. But some users are using them to recreate the likeness of the dead.
Russia warns Britain and plans nuclear drills over the West's possible deepening role in Ukraine
Russia plans to hold drills simulating the use of battlefield nuclear weapons, the Defense Ministry announced Monday, days after the Kremlin reacted angrily to comments by senior Western officials about the war in Ukraine and Moscow warned that tensions with the West are deepening.
Spike in 'violent rhetoric' since Oct. 7 attack from 'extremist actors,' CSIS warns
The Israel-Hamas war has led to a spike in 'violent rhetoric' from 'extremist actors' that could prompt some in Canada to turn to violence, the Canadian Security Intelligence Service warns.