In 2025, Toronto quietly changed the math on residential property. Under the Expanding Housing Options in Neighbourhoods (EHON) reforms, most residential lots can now hold up to four units as-of-right — and in many neighbourhoods, up to six. No rezoning application. No committee of adjustment hearing for the unit count itself.
Most owners haven’t noticed. Fewer than 1% of eligible lots have acted on it. That gap is the opportunity.
What “as-of-right” actually means
As-of-right means the zoning bylaw already permits the use. You still need a building permit, and your design still has to meet setbacks, height limits, servicing and Building Code requirements — but you are not asking the City for permission to add units. That removes the single biggest source of delay and uncertainty in small-scale development.
Your three main options
1. Multiplex conversion
Converting a detached or semi-detached house into a legal duplex, triplex or fourplex. Conversions are usually faster and cheaper than building new, and fourplexes have become the sweet spot for small investors: better layouts, stronger tenant demand, and simpler financing than five- or six-unit projects.
2. Laneway suite
A self-contained home on a lot that backs onto a public laneway, typically from around $315K as of 2026. Toronto has over 260,000 lots eligible for a laneway or garden suite.
3. Garden suite
A backyard rental suite, typically from around $195K. The City’s pre-approved plan program can shorten permit timelines significantly.
Why timing matters
Development charge exemptions currently apply to many projects up to six units — a saving that can run into tens of thousands of dollars per unit. Incentives like these tend to tighten as uptake grows, not loosen. Early movers also face less competition for experienced designers and trades.
Where projects actually fail
Not in construction — in the paperwork before it. Lot servicing capacity, angular plane rules, tree protection, parking layouts: these are design and permitting problems. That’s why we run every project design-first: check feasibility, design to pass, then build through licensed builder partners.
Find out what your lot can support
We offer a free feasibility assessment — tell us your address and we’ll tell you what your property can support, within two business days. Cantonese and Mandarin service available (廣東話／普通話服務). WhatsApp 647-915-4753.