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Toronto Sixplex Plans Scaled Back — But Multiplex Rules Still Improve
Toronto real estate investors — the City just made another move on “missing middle” housing. But before you get too excited, here’s the real update: sixplexes are no longer approved city-wide.
City Council walked back the broader rollout. While the sixplex plan passed at the Housing Committee level, it failed to pass at Council. For now, only Ward 23 (Scarborough North), Old Toronto and East York — 9 wards in total — will allow sixplexes as-of-right.
Still, there’s good news. Several changes were approved that will make it easier to build small multiplexes across the city.
What’s Actually Approved Now?
Here’s a breakdown of what you can now do — and what it means for you as an investor:
✅ Side-by-Side Fourplex Semis Are Now Allowed
Previously, if you tried to build a fourplex on each side of a semi, the City would classify it as an apartment — and block the project. That’s no longer the case. You can now build two fourplexes side by side on semi-detached properties without triggering rezoning.
✅ Development Charges Waived for fourplexes
If you build up to four units, you won’t pay development charges (DCs) — this rule still holds. That’s a major cost advantage compared to larger builds.
✅ Fourplex + ADU (4+1) can Be Built At The Same Time Without The Need To Pay DCs
You can now build a fourplex and add a laneway or garden suite (an ADU) as your 5th unit at the same time — and still defer development charges on the ADU. The City confirmed that ADUs no longer count toward the four-unit cap for DC waivers. That means you don’t have to phase the build just to avoid fees, making 4+1 projects more straightforward and financially efficient.
New Rules, New Limits: Bedroom Caps Now Apply
The City has now capped the total number of bedrooms per building — not per unit. This isn’t necessarily a win or loss, but it does impact design flexibility.
You can still build larger family-sized units (like 4-bedrooms), but you’ll need to watch the total bedroom count across the whole structure.
It’s the City’s way of discouraging rooming houses while still allowing multi-bedroom rentals — but for investors, this adds one more constraint to factor into your layout and unit mix.
Frequently Asked Questions
Do DCs apply to 6-unit builds?
Yes — unless you phase it properly. If you build 4 units first and add 2 later, you only pay DCs on the extra 2. But build all 6 at once? You’re paying DCs on all of them.
Can I do a 6plex + backyard house (7 units total)?
Yes, if your lot meets the size, setback, and fire code requirements. This isn’t automatic — design and zoning constraints still apply.
Are DCs waived if I build 5 units in one structure?
No. And keep in mind, 5-unit builds aren’t allowed everywhere. If you build all 5 in one go, you’ll pay DCs on every unit. That’s $250K if each unit triggers a $50K fee.
Can I build a laneway or garden suite before the main house?
Yes — the City removed the rule that forced you to build a fourplex before adding an ADU. You now have more flexibility in build sequence without losing the DC waiver on the first four units.
Should You Even Build a Sixplex in Toronto?
Here’s the real talk: just because you can build a sixplex doesn’t mean you should.
Unless you’re building in one of the 9 approved wards, sixplexes are off the table anyway. But even where they are allowed, the economics don’t always work.
Why? Bigger DCs, longer timelines, and smaller resale buyer pools.
We lean toward smaller, phased projects — especially 3+1 conversions. You can:
- Use residential financing
- Avoid DCs
- Tap into a broader resale market (house hackers, families, end users)
- Recycle your capital faster
- Take advantage of today’s buyer’s market without overextending
Honestly, we haven’t even seen fourplexes sell consistently in Toronto yet — so sixplexes will be even harder to move on the back end.
A Quick Timeline of “Missing Middle” Progress in Toronto
To understand how we got here, here’s a timeline of key changes:
2019: Laneway suites approved
2022: Garden suites approved
2023: As-of-right multiplex zoning passed (up to 4 units)
2024: Mid-rise Major Streets initiative launched — currently delayed due to appeals
2025: Sixplex pilot launched — scaled back to Ward 23 (Scarborough North) + Old Toronto + East York only
Bottom Line: Don’t Overreach
The updated rules are a step in the right direction. But the sweet spot is still in small, strategic builds that minimize friction and maximize return.
Focus on:
- Properties you can refinance residentially
- Builds that don’t trigger massive DCs
- Projects you can complete quickly and resell (if needed)
- Neighbourhoods with proven rental demand and exit potential
Thinking About Buying or Converting a Multiplex in Toronto?
If you’re serious about investing in Toronto’s missing middle — whether you want to buy something turnkey or convert an existing property — book a free strategy session with our team.
We’re a real estate sales brokerage that works primarily with Toronto multiplex investors. Here’s how we help:
- Deal Search: We’ll find you off-market and MLS deals that actually cash flow.
- Renovation Support: Need to convert or add units? We’ll connect you with vetted contractors and help you budget realistically.
- Leasing & Management: We can help you fill your units and manage them too.
- Refinance Guidance: We’ll walk you through resale and refinance strategies that maximize ROI.
Let’s help you buy smarter, build faster, and scale sustainably in Toronto’s evolving real estate market.
Want to see what’s possible for you? Book a strategy session with us here.
What Toronto Real Estate Investment Is Right For You?
Check out our complete Toronto real estate investment guide for all the details and real-life examples. If you’re ready to dive in, just book a call with us!
