July 22, 2025
As Toronto’s housing crisis continues, the city is slowly opening the door to more diverse and affordable housing options. One of the latest changes to address this crisis is the possibility of building sixplexes on certain residential lots.
In this article, we will break down what has changed, where sixplexes are allowed in 2025, and what steps you will need to take if you are thinking about building one. Whether you are a homeowner, landlord, or just exploring your options, here is your guide to navigating Toronto’s evolving multiplex rules.
What is a Sixplex?
A sixplex is a low-rise building with six separate units, and as of June 2025, new zoning rules in Toronto allow them in specific neighbourhoods. These changes are part of the city’s push to add more housing options between single-family homes and high-rises to address the housing shortage.
Where can I build a Sixplex?
Sixplexes are allowed as-of-right, which means without needing special approval in nine wards:
City planners originally recommended allowing sixplexes across all of Toronto. They argued that sixplexes would fit well into neighbourhoods and help with housing affordability. However, not all city councillors were on board. After much debate, they compromised: start with nine wards, and let the others opt in later. For everywhere else in Toronto outside of the nine wards, you are still limited to a maximum of four units—like a duplex, triplex, or fourplex—unless your local councillor pushes for a change in the future and chooses to opt in.
The Building Process
Step 1: Zoning Designation
Once you determine that your property is located in one of the nine wards where sixplexes are currently allowed, it is important to examine the zoning designation. Zoning designation outlines what kind of buildings are allowed on your lot and under what conditions.
In Toronto, residential properties are typically zoned as:
Each zone comes with its own rules, where RM zones are generally more accommodating to multiplexes than RD zones, which were originally designed for single-family homes.
Even if your ward allows sixplexes, your specific lot must meet certain development rules. These include characteristics such as:
Step 2: Physical Zoning Requirements
Even if the zoning allows sixplexes, your lot must be able to fit the building layout and meet requirements like:
It is useful to note that Toronto no longer requires parking minimums for small-scale multiplexes. Even if you cannot fit onsite parking, this would be fine, which is a huge relief for tight urban lots!
Step 3: Hire the right professionals
Once you have confirmed zoning eligibility, the next step would be to bring in a qualified architect or designer with experience in multi-unit residential buildings. For sixplex projects, it is often worth also hiring a planning consultant or permit expeditor to help navigate city approvals.
Your team will:
If your proposal falls outside of what’s permitted “as-of-right,” you’ll need to apply to the Committee of Adjustment for a minor variance, which adds time and complexity to the process.
Step 4: Building Permits
With your finalized plans in hand, it is time to apply for a Building Permit from the City of Toronto. Your submission will be reviewed by both the Zoning and Building Code teams, and it must include:
Step 5: Understand Permit Fees & Development Charges
Permit fees for a sixplex can range into the several thousand dollars (often around $10,000), depending on your project.
You will also need to budget for:
Development Charges are one-time fees that help pay for city infrastructure. The first 4 units are exempt from development charges thanks to recent provincial changes. Units 5 and 6 will likely be charged, unless you are converting an existing multi-unit property. These charges can be tens of thousands of dollars per unit, so be sure to include them in your budget. However, the waiver on the first four units makes sixplexes much more financially feasible than they used to be.
Step 6: Begin Construction
Once your permit is approved, you can begin construction. A 12–18-month timeline is expected for demolition and new build. The process involves Inspections from the city at various construction stages (e.g. foundation, framing, electrical). Coordination with contractors, trades, and inspectors are required throughout. The length of the construction phase will depend on site conditions, contractor availability, and how smoothly the process goes.
Step 7: Final inspection & occupancy
Once construction is over, final inspections need to be passed to receive an Occupancy Permit. An occupancy permit confirms that:
Once you get this clearance, you can officially lease out the units. If sixplexes are built after November 2018, they are exempt from Ontario’s rent control limits (as of 2025), giving landlords more flexibility on rent pricing.
Toronto’s Initiatives Surrounding Sixplexes
After months of debate, Toronto City Council has approved a limited rollout of sixplex housing in select neighbourhoods, which almost reached a citywide adoption. This initiative marks an important step toward building more homes and maintaining expectations of what the federal government expects through its Housing Accelerator Fund. The federal government has committed $4 billion to help cities build more homes through the Housing Accelerator Fund. To receive this funding, cities must show they have actionable plans to boost housing supply for the population. Adding sixplexes is one-way cities can qualify, since it helps increase the number of homes without needing to build high-rises.
On June 25, 2025, Toronto City Council voted to allow sixplexes in nine parts of the city without needing special approval. These include eight neighbourhoods in the Toronto-East York area and Scarborough North, where a pilot program has already been running. Councillors from the remaining 16 wards can choose to join in later by making an opt-in request. The city also promised to make sure the right services—like street cleaning, public facilities, and infrastructure upgrades—are in place where sixplexes are built.
This decision builds on Toronto’s earlier move in 2023 to allow fourplexes citywide and is a small but meaningful initiative towards increasing affordable housing options in more neighbourhoods.
Housing Accelerator Fund & Sixplexes Benefits
The HAF is part of Canada’s National Housing Strategy and is administered by Canada Mortgage and Housing Corporation (CMHC). The goal of the fund is to help municipalities remove barriers to building new homes. Through sixplexes, the creation of “missing middle” housing types -like duplexes, triplexes, and sixplexes- are encouraged. If this change comes to pass, multiple parties benefit such as municipalities, homebuilders and developers, and renters and homebuyers.
Municipalities benefit by receiving federal funding to modernize the ways they handle housing development. This includes upgrading outdated zoning bylaws, moving building permit processes online, hiring more planning staff, and improving infrastructure like roads and water systems. These improvements help cities respond more efficiently to growing housing needs without relying solely on local tax increases.
Homebuilders and developers benefit from a faster, more predictable approval process. If sixplexes can now be built “as-of-right” in some areas, developers avoid going through lengthy re-zoning or public consultation processes. With fewer regulatory obstacles and delays, projects can move forward more quickly and at a lower cost. This makes the overall process more attractive in building medium-density housing in residential neighbourhoods.
Landlords and homebuyers can also potentially benefit from this implementation. Increasing the supply of homes—especially in well-established, lower-density neighbourhoods. This can help reduce pressure on the housing market, keeping rents and house prices more manageable. These changes also create more housing options to offer for rent, such as family-sized rental units or more affordable starter homes, in areas with good access to transit, schools, and other community amenities. This gives more people a chance to live in vibrant, flourishing communities that may have previously been out of reach.
Consequences of the New Toronto Bylaw
Toronto’s recent decision to allow sixplexes in only nine of its 25 wards has big consequences. Through the Housing Accelerator Fund, the federal government promised $118 million a year to help Toronto build more homes faster. In order to be eligible for the maximum amount of funding, one major requirement was that Toronto would allow sixplexes citywide. By falling short of that goal, the city may now lose up to $30 million, which is about 25% of its annual funding.
If Toronto fails to keep the promises it made under the Housing Accelerator Fund agreement, the federal government is able to take action in multiple ways. This could include:
Why does this matter?
Partial Compliance with Federal Requirements
The Housing Accelerator Fund (HAF), launched by the federal government, correlates funding with municipal efforts to achieve for higher density housing. Full citywide approval of sixplexes was one of the expectations set by the federal government. By limiting permissions to just nine wards, Toronto may risk losing up to $30 million in federal funding, which is roughly 25% of its annual HAF allocation. Real estate developers and investors should monitor whether the city’s position will trigger funding reductions, as this could affect infrastructure investments and timelines in affected areas.
Zoning Law Implications
The council’s motion alters zoning permissions in specific wards, giving developers the green light to construct low-rise buildings with up to six units without undergoing variance or rezoning applications. In the other 16 wards, development remains the same and developers in those areas still face restrictions unless their councillor chooses to opt in. Legal counsel is essential in determining whether a specific lot qualifies for sixplex development under the new framework, and to evaluate how adjacent infrastructure improvements may affect project feasibility. If federal funding is cut, some of these infrastructure improvements could be delayed or scaled back, which may hurt the life of a project.
Infrastructure and Servicing Considerations
The city has committed to ensuring that neighbourhood infrastructure supports added density. This includes stormwater systems, waste management, and public realm maintenance. For property owners and builders, this creates potential policy opportunities and obligations, such as development charges, connection upgrades, and participation in community consultation processes.
Divided Council, Divided Communities
The decision exposed sharp divisions on council and within the community. For everyday residents, this vote touches on a deeper debate about what Toronto’s neighbourhoods should look like.
Supporters of sixplexes, including Mayor Olivia Chow and Councillor Gord Perks, see them as a solution to the city’s housing crisis. Sixplexes offer more affordable, family-sized units and help make better use of existing land, especially in areas currently dominated by single-family homes.
Critics argue that sixplex development could put pressure on local services, raise property values, and make it harder for middle-class families to afford a home in suburban areas. Some residents worry about parking, school capacity, and neighbourhood character.
The city is now in a balancing act: trying to keep federal funding, address its housing shortage, and respond to community concerns all at the same time. Whether more wards choose to opt in, and whether Ottawa enforces its funding threat will have a big impact on the city’s housing in the future.
Conclusion
Toronto’s decision to allow sixplexes in select neighbourhoods marks an important step in a much larger conversation about how the city grows and adapts to the housing challenges ahead. While the compromise does not go as far as many housing advocates and federal officials had hoped, it opens the door to more flexible, higher-density housing in parts of the city and sets the stage for more wards to follow over time. Going ahead will require careful planning, community engagement, and legal clarity to ensure housing goals are met without sacrificing livability.
As Toronto continues to adjust its policies and zoning rules, it is more important than ever to stay informed and prepared. Whether you are a developer, property owner, investor, or simply trying to understand what these changes mean for your neighbourhood, Bradshaw & Mancherjee is here to help you navigate these regulatory changes. Our Toronto real estate law firm offers clear advice, strategic planning, and up-to-date insights on how evolving regulations may impact your real estate goals and investment decisions.
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