Toronto Neighborhoods See Garden Suite and Multiplex Growth

Two years after loosening zoning rules in 2023 to allow small-scale multiplexes across residential neighborhoods historically single-family only, Toronto developers behind luxury residences are beginning to think smaller.

Garden suites and multiplexes are catching both developers’ and homeowners’ eyes, the Toronto Star reported.

Since 2023, Toronto has allowed garden units, laneway suites or multiplexes up to four units without special permission. In June, the city passed a bylaw permitting up to six units in the old city of Toronto, East York and the ward of Scarborough North.

The shift created a space for custom homebuilders, such as Behzad Ayon, to have a go at multiplex developments. Ayon, the managing partner of Aria Build, once specialized in luxury single-family residences, but due to higher interest rates, higher construction costs and lower home prices fetching about 20 percent less than the market peak in 2022, pivoted toward multiplexes.

Though Ayon has found a niche with multiplexes, another type of unit has become even more popular.

“It’s not the multiplexes we see as much,” said Kevin Mellor, co-owner of Veralinea Design Studio. “It’s the garden suites. We get probably 10 times as many calls on garden suites as we do multiplexes.”

The shift underscores a broader challenge facing Toronto’s housing strategy. While policymakers have promoted multiplex conversions as a way to diversify the city’s housing stock and add “missing middle” units, the economics sometimes deter small-scale builders and homeowners from taking on such complex projects.

“You yourself have to take that risk,” Mellor said, as it takes time through renting to recoup the upfront costs, which can run upwards of $2 million per multiplex.

Garden suites, by contrast, offer simpler permitting, smaller footprints and faster returns — all major advantages in a market squeezed by high interest rates and construction inflation.

Builders say many homeowners view backyard suites as lower-risk investments that can house adult children or aging parents while adding property value.

— Eric Weilbacher