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The GTA real estate landscape is shifting and for investors, that’s not a bad thing. With new zoning reforms, rising rental demand, and a growing push for gentle density, the opportunity to create multi-unit income properties has never been stronger. Whether you’re looking to convert a bungalow into three income streams or build a multiplex from the ground up, understanding zoning and lot requirements is the key to unlocking serious long-term value.
Here’s what today’s investors need to know.
Multiplex-Friendly Zoning: A Game-Changer for Investors
Across Toronto and much of the GTA, municipalities are opening the door to more density on
residential lots. This includes:
As-of-right permissions for up to four units on many residential properties
Garden suites and laneway homes becoming easier to approve
Fewer parking requirements, making infill development more feasible
Streamlined approvals for multiplex conversions
For investors, this means more flexibility, more creativity, and more ways to turn a single
property into multiple revenue streams.
Where Are the Best Areas for Multiplex Potential?
While opportunities exist across the GTA, certain neighbourhoods stand out for their zoning, lot
sizes, and rental demand:
Toronto (416)
Etobicoke (especially older bungalow pockets) — wide lots, deep yards, and strong
rental demand
Scarborough — excellent value, larger lots, and supportive zoning for garden suites
East York — high appreciation potential and strong tenant demographics
Downtown & Midtown — ideal for triplex/fourplex conversions where rents are highest
Mississauga, Brampton, Hamilton, Durham
Many areas now allow three units as-of-right, with some permitting four
Larger suburban lots make it easier to add garden suites or basement apartments
Transit-oriented communities (LRT, GO expansion) offer long-term upside
Investors should prioritize neighbourhoods with transit access, strong rental demand, and
supportive zoning bylaws.
Income Stream Comparisons: What’s Possible on One Property?
Here’s how different property types can perform when optimized for multiple units:
Main floor unit
Legal basement suite
Garden suite or laneway home
This setup can generate three separate income streams on a single lot which is ideal for
cash flow and long-term appreciation.
2. Purpose-Built Multiplex (Triplex or Fourplex)
Higher upfront cost, but
Stronger total rent
Lower vacancy risk
More predictable long-term performance
3. Duplex with a Garden Suite
Great for mid-budget investors
Two units in the main structure + one in the yard
Excellent balance of cost vs. return
What Investors Should Look for in a Lot
Before purchasing, investors should pay close attention to:
Lot Depth & Width
Most municipalities require:
Minimum 40–45 ft depth for garden suites
Minimum 16–20 ft width for laneway access (Toronto)
Adequate space for setbacks and fire access
Zoning Type
Look for:
R zones that allow multiplexes
Neighbourhood Residential (NR) in Toronto, which now permits up to four units
Avoid lots with restrictive overlays (heritage, floodplain, conservation) unless you’re
experienced
Parking Requirements
Many areas now allow zero parking for multiplexes which can be a huge cost saver.
Servicing Capacity
Older homes may require upgraded electrical, plumbing, or sewer capacity to support multiple
units.
Why This Matters for Investors in 2026
With rental demand at historic highs and municipalities pushing for more housing, multiplex-friendly properties offer:
Higher cash flow potential
Better tenant diversification
Stronger long-term appreciation
More exit strategies (sell as a multiplex, sever, or condo-convert in some cases).
This is one of the most investor-friendly policy shifts the GTA has seen in years, and those who
understand the zoning landscape will be the ones who benefit most.