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Thinking about building a multiplex in Toronto? It’s not just about what the city allows today — it’s about where the city’s heading. If you can align your build strategy with that direction, you’ll give your project a much better shot at strong returns — and in some cases, lower costs too.
Toronto says it wants more “missing middle” housing — things like triplexes, fourplexes, and five- or six-unit multiplexes. But talk is cheap. Anyone who’s tried to build one knows it’s still an uphill battle. Let’s break down what’s happening now, what’s coming next, and how to plan smarter.
A Quick Timeline of Missing Middle Progress
To really understand what’s happening, we’ve got to rewind a bit:
2019: Laneway suites approved
2022: Garden suites approved
2023: Multiplex zoning passed — up to four units allowed as-of-right on any residential lot
2024: The Major Streets initiative launched (to allow mid-rise on main roads) — now delayed due to appeals
2025: The 6plex pilot launched in Scarborough North, allowing five- and six-unit builds as-of-right
If the 6plex pilot goes well, expect a city-wide rollout — but that’s still a big “if.”
Why Most Builds Are Happening Downtown — Not Everywhere
Just because multiplexes are legal doesn’t mean people are building them everywhere. Most applications are concentrated in the old City of Toronto — areas like Dovercourt, Davenport, Dufferin Grove, and the east end. These neighbourhoods sit just north of downtown, where land is still cheaper than the core, rents are solid, and transit is accessible. Another major reason? Street parking is allowed overnight.
Contrast that with Scarborough or North York, where overnight street parking isn’t allowed. If you can’t squeeze in a front-yard spot or widen a driveway, your build gets way harder to plan — especially for investors.
Variances Are Still Slowing Down Builds
Even with the new zoning, most projects still need minor variances — whether it’s for height, setbacks, or angular planes. If your design doesn’t tick every box, you’re off to the Committee of Adjustment, which means more time, more cost, and more risk.
That’s why mid-2025 is a big deal — the city’s reviewing feedback right now, and one major ask is to loosen the rules and allow more builds as-of-right. If that gets approved, we could see major improvements by late 2025 or early 2026.
What’s Really Going On With 6plexes
Here’s the truth: even though sixplexes are being tested in Scarborough, most investors aren’t actually building six units. Why? The real target is 4+1.
Once you cross four units, your project is considered “commercial.” That’s not all bad — it opens the door to better financing with CMHC’s MLI Select program. You could qualify for:
Lower interest rates
Higher loan amounts
Easier approval based on rental income (not just personal income)
But here’s the catch: once you hit five units, development charges (DCs) kick in — hard. That can mean over $100K added to your budget. Four units? No DCs. Add a fifth? Prepare to pay up.
Why Builders Are Staging 5+ Unit Builds
To work around the high fees, builders are staging their projects. They’ll get a fourplex up and running first, then come back later to add a laneway or garden suite as a fifth unit. The idea is to avoid DCs on the first four and defer or minimize fees on the fifth.
But this isn’t a perfect strategy. It adds delays, extra costs, and more moving parts. Most investors aren’t pushing for six units right now — they just want to get to five without breaking the bank.
If the city really wants more 5- and 6-unit multiplexes, they need to waive or reduce DCs. Until that happens, most deals just don’t pencil out.
What Could Help Next? Four-Storey Multiplexes
There’s also talk about making four-storey multiplexes legal as-of-right. That would be a major win — better layouts, full-height ceilings, and easier paths to five units without needing variances. It’s probably the next logical step, but we’re not there yet.
The Bottom Line
If you’re looking to invest in Toronto’s missing middle, you need to see both the opportunity and the roadblocks. The city’s heading in the right direction — but the rules still have a long way to go. The next update is expected in mid-June, and we’ll keep you posted so you can stay ahead of the curve.
This isn’t about hype. It’s about playing the long game and building based on where Toronto’s actually going — not where we hope it’ll be. That’s how you get faster approvals, fewer fees, and better long-term returns.
The Bottom Line
If you’re thinking about investing in Toronto’s missing middle and want to explore real multiplex opportunities, book a free strategy session with us.
We’re a real estate sales brokerage that works with investors — and we’ll help you find the right property to buy, whether it’s turnkey or a value-add project. We’ll walk you through real listings, real numbers, and the full buying process, step by step.
Here’s what it’s like to start as a client with us:
- Initial Consultation: We’ll talk with you to understand your needs and teach you how to invest wisely in Toronto real estate.
- Market Search & Purchase: We’ll search the market to find the perfect property for you.
- Renovation Support: If the property needs renovations, our trusted contractors are ready to help, and we’ll coach you as you manage the project.
- Leasing and Management: If you need help renting out and managing your property, our leasing and management team is here for you.
Ready to get started? Click on the link below, and let’s start working together!
What Toronto Real Estate Investment Is Right For You?
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