Welcome to Canadian Real Estate, Housing & Home – I’m Steve Fudge!
Today I’m sharing one of my recent blogs from my site – Urbaneer.com. This one focuses Toronto’s new housing by-laws, or rather, the fruits of the City’s labour. We’ve crested the incoming wave of new builds that have been made possible by the amendment to allow ‘as-of-right’ multiplexes up to four units.
Read on!
I want to start this post by stating that I believe shelter is a right, not a privilege. Until an individual has a key to a private room where they can be safe and secure, they do not have agency. Until a family has affordable housing to flourish, they are impoverished. Canada’s housing crisis is most acute for its lack of community housing followed by its shortage of affordable market housing. We lack sufficient shelter for lower and middle-income households across the country.
In May 2023, the City of Toronto made a progressive leap forward when they adopted the recommendations of a ‘Multiplex Study’ that was part of Toronto’s Expanding Housing Options In Neighbourhoods Initiative. The resulting Zoning By-Law Amendment granted the ‘as-of-right’ to build multiplexes up to four units (plus a garden suite or laneway home when meeting the criteria) on parcels of land that were previously the domain of single-family dwellings. We wrote about it here: As-Of-Right Multiplexes Create Missing Middle Options For Toronto Real Estate.
This change permits multiplexes to be built in all areas designated Residential. City Hall hopes it will help ease the housing crisis by densifying neighbourhoods formerly occupied by predominantly single-family dwellings – particularly ‘yellowbelt neighbourhoods ‘. Here’s a great resource map about Yellowbelt areas.
Before this multiplex policy was introduced, a homeowner could have an accessory suite (basement apartment) in their residence and, as of 2019, a laneway dwelling or, as of 2022, a garden suite providing they each met specific site criteria. Now one can construct four units as-of-right and, if in compliance, a laneway or garden suite.
To accomplish this, the height limit for residential buildings was increased to 10 metres – which already exists in some, but not all, city neighbourhoods. East York, for example, has historically had a height limit of 8.5 metres. Also, the as-of-right bylaw allows multiple front doors facing the street and up to two porches/decks/balconies per unit (which are sensible fire escapes). Furthermore, previous parking requirements were eliminated, and development charges (around $50,000 per unit) are currently waived for up to 4 units to encourage this kind of development.
A year after the new bylaw was introduced, a property in East York redeveloped under this new as-of-right bylaw came to market for sale – not as a single multiunit dwelling for purchase – but as four new condominium units offered for sale separately. This development demonstrates that a site once home to a bungalow can become four separately deeded units to shelter four independent households. In fact, it mirrors my efforts to sell an obsolete East York bungalow by promoting the possibility of building –> A New Multi-Generational Family Residence, Co-Housing For 4 Friends, An Income Property Or A Small Condominium In East York, Toronto.
Located on Mortimer Avenue – north of Danforth west of Donlands in the heart of East York – the 31.81′ x 145.95′ lot was originally home to a small bungalow constructed in 1938. In July 2020 the property was listed for $899,000 and sold for $1,020,000.
Here’s what it looks like today:
The pictures & prices for each of the 4 units are as follows:
Suite 1 – A 2-Storey 2Bed, 2.5Bath Suite (1400sf) – Sold for $979,900
Suite 2 – A Lower Level 1Bed Suite (501sf) – Was listed for $399,900 but now off the market
Suite 3 – A 3-Storey Townhome Condo (1895sf) with 4-Bedrooms % 2-car tandem parking – Sold for $1,200,000
Suite 4 (Garden Suite) – A 2-Storey, 3Bed 2.5Bath Garden Shed Suite (1200+sf) + 700sf exclusive garden – Sold for $1,100,000
If Suite 2 were to be relisted and sold for its previous $399,900 asking price, the Total Sale Price for the 4 units on this property is –> $3,679,800 !!!
This was more profitable than constructing an executive single-family dwelling which sell in the range of $2,200,000 to $2,600,000 in East York.
In “This Toronto Condo has Four Units“, a TorStar columnist writes: “Together, the four newly built units form a condominium, all for sale. It’s a style of multiplex new to Toronto, and industry insiders say it could spark an increase in similar projects springing up across the city.”
“It hits every demographic and every family size,” said Krikorian. “Young couples, downsizers in the area, people that want to be close to downtown but yet don’t want to be uptown. The semi and the townhome each sport balconies overlooking the fenced-in backyard. Inside, the units are bright and outfitted with new appliances, including a gas stove, with wooden finishes. Each unit has its own designated outdoor space divided by fencing, and although only the semi has a parking spot the property is within walking distance to multiple transit lines and designated street parking.
“Each unit pays condo fees — $394.20 for the townhouse, $230.15 for the basement, $633.08 for the semi-detached and $491.44 for the garden suite.”
“After seeing this building land on the market, Galbraith [the president of an urban planning firm] expects to see a rising interest from other builders looking to replicate the project. For him, it’s already prompted a discussion with colleagues about the potential opened up by this pioneering development.”
Thanks for reading!
~Steven
