Canadian cities are undergoing significant transformations driven by population growth, housing affordability issues, and the need for sustainable urban development. Various municipalities are increasingly rezoning areas to allow for greater density, particularly by permitting duplexes, triplexes, fourplexes, and sixplexes in regions previously designated for single-family homes. This shift in urban planning presents both opportunities and challenges for real estate professionals.

The Push for Greater Density

Urban sprawl has long caused increased commuting times, environmental harm, and infrastructure strain in Canadian cities. To combat these issues, municipalities are promoting higher-density living by rezoning single-family neighbourhoods to allow multi-unit residential buildings. This strategy maximizes existing urban land use and fosters more diverse, vibrant communities. Vancouver, Toronto, Calgary, and other metros are aiming to increase housing supply by allowing multi-unit buildings in low-density areas. These policies aim to make cities more inclusive and affordable by providing a broader range of housing options.

The Role of Real Estate Professionals

Real estate agents play a critical role in urban transformation, guiding clients through the intricacies of evolving zoning regulations. Whether buying or selling homes, identifying properties for development or conversion, or maneuvering through a dynamic market, they are indispensable.

Educate Clients

Stay informed about the latest zoning changes and housing policies to educate clients on the benefits of multi-unit properties, such as potential rental income, increased property value, and contributions to housing affordability.

Identify Opportunities

Help clients identify properties suitable for redevelopment or conversion into multi-unit dwellings, considering factors like lot size, location, and existing structures.

Navigate Regulations

Guide clients through the permitting process, ensuring all necessary approvals are obtained and projects comply with local regulations.

Connect with Professionals

Leverage networks to connect clients with reputable architects, contractors, and urban planners, facilitating smooth project execution.

Market Multi-Unit Properties

Effectively market duplexes, triplexes, and other multi-unit homes, highlighting benefits such as increased density and potential rental income to attract a diverse range of clients. Target efforts to the right audience, and leverage contacts and partnerships.

Impacts of Increased Density

Rezoning for greater urban density offers several benefits. You may have clients concerned about the impacts rezoning may have on their existing properties; advising them about the benefits, as well as the expected impacts – as well as debunking any myths about the impacts – will help. Expert, impartial guidance is invaluable.

Benefits 

Increasing the supply of housing units can alleviate market pressure, potentially lowering prices and making housing more affordable. Higher-density living reduces urban sprawl, promotes efficient land and resource use, and encourages walkable neighbourhoods, decreasing carbon emissions.

Increased density can also create more vibrant communities. Multi-unit buildings create diverse, dynamic communities with more opportunities for social interaction and engagement. It stimulates local economies by attracting businesses and services to meet the needs of a growing population, leading to job creation and enhanced economic vitality.

Challenges and Considerations

Residents may resist zoning changes due to concerns about traffic, neighbourhood character, and infrastructure strain. Facilitating discussions, providing educational materials, and other initiatives can help by providing accurate information that addresses concerns. Fears that increasing density will lower property values may not be founded; one study finds that it may even increase value. However, all aspects of a neighbourhood need to be considered. Gentler density increases that do not put a strain on infrastructure will have less of an impact than a more significant development.

As density increases, assess whether roads, schools, and public services can accommodate growth and consider these factors when advising clients. Well-designed, high-quality multi-unit buildings that integrate seamlessly with existing neighbourhoods can contribute positively to a neighbourhood, but be aware of signs of density becoming more than an area’s infrastructure can handle.

Increased multi-unit properties can impact property values and rental rates. Stay well-informed about market trends to provide accurate advice.

Provide accurate and comprehensive information to clients. Proactive information in updates, posts, and newsletters can be effective and establish you as an informed authority. If you have direct experience, share examples of the impacts of multi-unit developments that have been integrated into existing neighbourhoods. 

Specific Initiatives Across Canadian Cities

• Vancouver’s “Making Room” program, which expanded housing options by allowing duplexes, triplexes, and other multi-unit residences in low-density neighbourhoods, has been replaced by its new three-year action plan. This has further updated rezoning for multi-family units.
• Toronto permits diverse housing types, including laneway and garden suites.
• Calgary’s blanket rezoning change included zoning reforms for mixed-use developments and higher-density housing.
• Edmonton‘s Missing Middle Initiative promotes multi-unit housing in mature neighbourhoods.
• Halifax’s Centre Plan supports higher density in key areas for more affordable housing options and consideration of additional units in certain zones.

Various cities across Canada have also implemented secondary suite initiatives and incentives to boost housing.