The Quiet Rise of Mid-Density: Why Toronto’s Missing Middle Is Finally Getting Attention

After years of being locked out by rigid zoning, "gentle density" is finally gaining ground across the Greater Toronto Area (GTA). The deliberate scarcity of housing options that fall between towering condominiums and sprawling detached homes—the so-called Missing Middle—has been a major contributor to the city's affordability crisis. Today, regulatory reform and market pressure are beginning to reshape how we think about residential growth, moving past the binary of towers versus bungalows.

Policy Breakthroughs—Multiplexes and Laneway Suites

The biggest catalyst for change has been the City of Toronto’s Expanding Housing Options in Neighbourhoods (EHON) initiative. This program has systematically dismantled decades of exclusionary zoning, most notably by permitting multiplexes (up to four units) as-of-right across all residential neighbourhoods since May 2023. This is a game-changer because it eliminates the need for expensive and time-consuming rezoning applications, allowing builders to proceed directly to a building permit.

Recent provincial action and amendments, particularly in early 2025, have further turbo-charged this reform:

• Development Charges (DCs) Elimination: For projects with six units or less, DCs have been fully waived (a potential saving of $45,000-$50,000$ per unit), significantly improving financial feasibility.

• Expansion to Sixplexes: The City is now working to expand as-of-right permissions to include six-unit dwellings in select core and transit-accessible wards, reflecting a 50% increase in multiplex permits issued in the first half of 2025 compared to the previous year.

The success of Laneway Suites and Garden Suites (legalized in 2018 and 2022, respectively) serves as a proof of concept. Building permits for these small, detached units have steadily risen, demonstrating an appetite among homeowners and small builders to embrace infill development.

The Benefits—Affordability, Families, and Vibrancy

The shift to mid-density provides three crucial community benefits:

1. Family-Friendly Housing: Missing Middle homes—like townhomes, triplexes, and low-rise walk-up apartments—naturally offer larger, ground-related living space than typical high-rise condos. This provides essential housing for families with children, who often struggle to find affordable units that meet their space requirements within the city.

2. Attainability and Affordability: While not deeply affordable, multiplexes and laneway suites can offer a price point that sits well below the cost of a detached home, providing a stepping stone for middle-income families. Furthermore, for existing homeowners, creating an additional suite can generate a vital supplemental income stream to offset rising property taxes and mortgage costs.

3. Local Vibrancy: By adding density gently to existing, transit-accessible neighbourhoods, the city makes better use of existing public infrastructure (schools, parks, sewers) and supports local retail, fostering more walkable and vibrant communities.

Highlight 3: The Obstacles—Financing, Zoning, and Community Friction

Despite the new freedoms, the Missing Middle is not yet a runaway success. Developers face significant hurdles:

• Financing "No Man's Land": Small-scale projects (typically valued at $3- $10 million) often fall into a financing gap. They are too large for conventional residential mortgages and too small to attract favorable rates from institutional capital, forcing reliance on expensive private lenders.

• The Approval Lag: While rezoning is eliminated for up to four units, projects still require building permits, which can be subject to lengthy administrative processes and neighbourhood opposition, sometimes erasing profitability due to delays. The monitoring of heritage site impacts and environmental concerns (like storm system capacity near reduced permeable surfaces) also adds complexity.

• Parking and Design Friction: Local opposition often centres on parking scarcity and perceived changes to neighbourhood "character." Although the City has relaxed parking minimums near transit, the lack of standardized, easily buildable designs means every project can still be a unique battle.

Takeaway: The Crucial Role of Construction Managers

Toronto’s Missing Middle may be the key to balancing affordability with livability, but policy alone is not enough. This is where construction management expertise becomes crucial—translating regulatory intent into real-world homes:

Construction managers must be pioneers, specializing in Part 9 of the Ontario Building Code (the streamlined rules for small buildings) to maximize efficiency and reduce hard costs. By using standardized, repeatable designs and expertise in small-scale construction logistics, firms can mitigate the financial risks associated with delays and cost overruns.

For developers and homeowners alike, partnering with a construction expert is the surest path to navigating the new landscape and ensuring that Toronto’s gentle density revolution moves from a concept on a zoning map to a foundation in the ground.

Phone: 647 695 2025

Email: info@riisebuilding.ca