With the adoption of the multiplex zoning bylaw in the City of Toronto, residential up-zoning across the City now boasts the most innovative and robust solution amongst Ontario municipalities to quickly increase housing options. This has taken the form of duplexes, triplexes, and fourplexes that citizen developers – both small-scale real estate investors and homeowners can begin implementing. Individuals converting existing properties or constructing new infill residential buildings can be sure to encounter barriers including financing construction, design development, and renting or selling units.
Missing Middle Housing Upzoning
But the city’s new zoning bylaw will reduce the complexity of the urban planning process in an attempt to address the current housing crisis. In this blog post, we will look at the process involved in creating missing middle housing where single-family zoning regulations exist. And how the modification to these form-based codes will help address the growing demand for smaller homes. We’ll explore what the missing middle housing types mean for detached single-family homes in Toronto. Also, we’ll look at how “plexes” (duplexes/triplexes/fourplex units) may become a more widely used form of housing. Property owners who decide that building missing middle housing will realize it’s a worthy undertaking and will inadvertently begin the journey of building wealth in real estate. This type of use on residential lots supports the provincial and municipal governments’ initiative to grow the housing stock by 1.5 million homes by 2031. Providing middle housing options is a viable and rapid response to today’s housing crisis, so they are thinking big by building small middle housing to address the growing demand for housing. So keep reading to learn everything you need to know about implementing multiplexes in Toronto’s evolving, urban planning landscape!
Missing Middle Housing
The “Missing Middle Housing” is a term that urban planners and city staff use to refer to a range of middle housing types. Particularly housing that falls between single-family homes and townhouses that are 3 storeys or less in building height and located in residential areas. These buildings are usually referred to as duplexes, triplexes, and fourplexes. It generally excludes mid-rise buildings that are between 5 to 12 storeys and high-rise which usually have 13 or more storeys.
Option of the Missing Middle Housing
These types of missing middle housing provide more housing options for residents who want to live in vibrant urban neighborhoods but cannot afford traditional single-family homes or costly high-rise living. The reason may include but not limited to:
Residence aging in place – Individuals now entering the golden years of their lives and have raised their families in homes that now are too big for just them. The option of building a garden suite and moving into the smaller space makes sense especially since the primary dwelling can now be converted into a middle housing multiplex.
Raising Family Near Family – Some residents have lived, worked, and played in communities (all their life) that no longer have land for building new low-rise housing and they are forced to move to other cities. This has pushed many would-be residents into the suburbs.
Multi-generational Family – Many families are structured with multiple generations living under the same roof. Missing middle housing gives these families more housing options even if it is a temporary solution to support their need for more housing accommodation.
In the city of Toronto, Missing Middle Housing has become an increasingly important tool for creating equitable and diverse housing. As the demand for middle housing continues to grow, policy-makers need to take decisive action to add higher-density housing to existing neighborhoods in defiance of today’s housing crisis.
Create High-Density in Low-Density Communities
This type of higher-density low-rise middle housing has the potential to increase the housing stock without sacrificing community vitality, livability, and character in residential areas. While middle housing is not necessarily suitable for the urban core, surely it will improve housing choices in areas zoned exclusively for single-family detached dwellings. The missing middle housing is a good start but it cannot solve all the challenges presented by today’s housing crisis alone. In recent years, we have seen encouraging government support for the construction of more Missing Middle housing. This impacts the housing crisis, by strengthening policy around housing choices in single-family neighborhoods, and allows for the creation of more affordable and diverse housing options for the residents of Toronto.
Modernizing Multiplexes Policy and Provisions in a housing crisis
Most cities are experiencing population growth and the City of Toronto has seen a population boom. This inevitably has forced the hand of the City Council to find ways to provide housing solutions for middle-class families. To tackle this issue, the City Council enacted the multiplexes zoning policy, which encourages the development of middle housing – small developments with two to four units per lot, plus a garden suite – in residential areas formerly designated as Residential Low-Density Zones. These multiplexes provide the opportunity to meet the increasing demand for missing middle apartment buildings while preserving the character of the neighborhoods.
Role of Policy in Missing middle housing types
The Provincial government rapidly enacted 3 housing Bills that will forever remove the barriers to higher-density land use throughout the Ontario city’s “Yellowbelt”.
- Bill 108, More Homes, More Choices Act in June 2019,
- Bill 109 More Homes, For Everyone Act in April 2022, and
- Bill 23 More Homes, Built Faster Act in November 2022
These legislative bills form the framework that will propel the development of the missing middle housing.
Summary of the Multiplex Zoning Bylaw Changes
The City of Toronto responded with subsequent studies particularly the Expanded Housing Option in Neighborhood (EHON) which led to the adoption of a new Multiplex Zoning Bylaw. Multiplex zoning bylaw amendments target 3 types of zoning that restrict middle housing namely:
- RD – Residential Detached
- RS – Residential Semi-Detached
- RT – Residential Townhouses
Following Bill 108 in 2019, most municipalities including Toronto allowed garden suites in the rear yard and laneway suites where lanes exist. Though it was a step in the right direction, there were still too many requirements that limited the size and construction such as the rear yard coverage, lot coverage, and setback between the dwelling and garden suite as well as rear yard setback. In my opinion, the city policymakers recognize that thinking big about missing middle housing was the solution. Here are some of the changes to Toronto form-based codes that govern missing middle housing.
The following list of zoning requirements is anecdotal and should not replace direct consultation from a qualified designer:
Zoning Bylaw Items
- Single Detached, Semi-Detached, and Townhouses are all allowing duplexes, triplexes and fourplexes referred to as Multiplex
- Multiplexes building depth increased to 19 meters
- All multiplexes are allowed to be 10 meters in height
- Two balconies are allowed on each floor of a multiplex
- Adding a second entrance into the front facade
Sustainable/Green Building
- Preserve both public and private mature trees. Private Trees 1-foot diameter at a 4 feet height need a permit to be removed.
- Provision to replace parking surface with landscaping
Thinking big about housing needs and filling the missing middle housing types gap is the goal of cities. By promoting sustainable development, providing diversified missing middle housing choices for residents, and improving access to existing infrastructure, this comprehensive zoning policy is setting Toronto on a path toward providing more inclusive and equitable housing.
Citizen Developers
If you are a citizen of Ontario that owns a property and possibly have plans to add one or more dwelling units to it, this qualifies you as a “Citizen Developer”. Most small-scale real estate developers are regular citizens seeking to supplement their mortgage investment with rental income, add additional living space for the inlaw or multi-generational arrangement, or purely as a wealth generation tool from an investment property. The majority don’t have formal training in the architecture, engineering, or construction of a building. This is why working closely with a BCIN design practitioner focused on the missing middle (Multiplex) is critical to your success as you can leverage their understanding of the local regulations. This will allow Citizen Developers to maximize the highest and best use of a property by leveraging the expertise of the BCIN designer to their advantage.
Pros and Cons of Multiplex Conversions
While Multiplex has several benefits for both property owners and real estate investors, there are various scales of complexity. Citizen Developers converting a single-family house into duplexes, triplexes, or fourplexes will face cost uncertainty. During design planning 80% of expenses are uncovered, however, there will always be unpredictability during construction to the tune of 20% minimum so your contingency should reflect this consideration. Missing middle housing is missing for a reason, and the reason is its complexity. Unlike renovating a basement or installing a powder room, multiplexes have varying levels of difficulty.
Factors that dictate this range of intricacy
- Housing typology, for example, converting a bungalow versus a 2 1/2 storey, and the scale of the renovation which can include building a new addition (vertical or horizontal) to accommodate added units.
- Timeline both in the design planning phase and construction execution phase. Delays can be the result of the building permit review process, additional supporting documents requested by the authorities having jurisdiction (AHJ), construction labor or material supply chain issues, or inspection deficiencies that can derail the timely completion of a Multiplex project.
It is worth mentioning that Citizen developers in most cases will need to phase construction. Financing or living arrangements are usually the reasons among others. Those processes also take time and will affect the start date of the project.
- Then there tenants management which if mismanaged during the occupant selection stage can completely frustrate and hinder the beneficial operation of the asset.
Despite these challenges, multiplexes create more affordable housing options and increase density in existing communities, while helping to create vibrant communities and stronger local businesses. The missing middle housing provides more housing options in existing neighborhoods close to existing hard and soft infrastructure, but this is the designation, so pack appropriately for the journey.
Infill Development Process for a Multiplex Project
Developing a multiplex project can be an intricate and demanding process, but with proper planning and execution, it can lead to a successful and profitable venture for individuals building small scale projects. While renovating existing houses into middle housing buildings is common, new purpose-built multiplexes can also be rewarding. It involves various steps such as:
- Obtain Financing
- Site Selection
- Feasibility Assessment
- Permits Documentation
- Execute Construction
It is a layered process and though some stages can be executed concurrently it often means adding risks to the project.
Financing – needs to be taken seriously. Securing a construction loan for the project can be daunting and with rising interest rates it can be costly, so speak with a knowledgeable mortgage brokerage to understand the options.
Site Selection – is probably the single most important step. Determining restrictions such as conservation, heritage, environmental, and easements on a property. This level of due-diligence is imperative.
Feasibility Assessment – is all about zoning, zoning, zoning! A property with the right land used will lend itself better to feasibility design massing for the highest and best use.
Permit Documentation – for new construction typically requires surveys by OLS, engineering by P. Eng., and in rare cases a building code review by a code consultant. He who has the best paperwork wins in reduced review time by the AHJ
Execute Construction – in a time-effective manner beginning with hiring an experienced contractor. If self-management of the project is the intent then planning all scope and scheduling all trades in advance is critical to the success of the project.
Each step entails its specific challenges and requires expertise in the respective fields. The key to a successful project lies in having accessible funding, a suitable site, a well-planned strategy, effective communication, and a collaborative approach among the many stakeholders involved.
While the process of building small-scale may seem daunting, working with the right team and resources can make a multiplex project a tremendously rewarding experience.
Opportunities Ahead – Leveraging Innovation
Navigating the city’s regulations has its challenges. While regulations can often seem daunting, they serve an important purpose in ensuring public safety and preserving the integrity of our city. However, it is equally important to consider how innovation can be used to optimize processes, improve efficiency, and encourage more residents to build missing middle housing. So leveraging innovative solutions to create housing options and optimize land use is paramount. In addition to the adoption of the new multiplex regulation, cities need to think about innovating in three departments:
Financial – In most cities across Ontario there small-scale real estate developers are taxed in the form of Development Charges, Parkland fees, and Community Benefit Charges each time a new dwelling unit is brought to market. On average these fees add 20% to 35% additional cost to a project making the project unfeasible.
Building – The review of any building permit application can be a laborious process that can terrify the best of us and confuse the rest of us. It has become necessary to streamline the review of multiplex permits, and consideration should be given to the creation of standardizing permit documentation that is authorized and recognized by the city building department.
Construction – Other construction delivery methods may contribute to the efficiency needed to build more, faster. Traditionally, building detached single-family homes is done using the wood-framed platform method on-site, referred to as stick framing. Though modular construction has been around for decades its application has always been limited but a potential solution exists for hybrid delivery.
By embracing new technologies and creative solutions, we can work towards a future where constructing missing middle housing is more efficient.
Conclusion – Multiplexes as a Missing Middle Housing Option
Toronto is in the midst of a housing crisis, and with rising demand for missing middle housing options, multiplexes can play an important role. It is important to consider the potential benefits and drawbacks for residents living in a residential unit within a multiplex over time to improve the housing experience. By leveraging innovative solutions to optimize processes and improve efficiency, cities can encourage citizen developers to create new missing middle housing for those seeking an alternative to the suburbs and high-rise living. These multiplex projects will aid in providing local jobs to construction trades which could stimulate the economy. Ultimately, multiplexes provide an opportunity to bridge the gap between single-family homes and high-rise apartments, creating a missing middle housing option that can help to address the city’s growing demand for housing.
Toronto’s multiplex bylaw reform has been an important step towards the city’s goal of tackling its housing affordability crisis and encouraging sustainable middle housing development.
As much as this is fantastic news for Torontonians, there are still some challenges that must be faced while exploring this new type of middle housing option. Nevertheless, if we all continue working together towards building a strong and efficient framework for multiplexes, we’ll alleviate the fear around housing for many newcomers that want to call Toronto home.
