The numbers tell the real story.
Since Toronto legalized multiplexes in May 2023, the city has issued 452 permits for fourplex projects. That's concrete proof the development charge waiver worked exactly as intended.
Now, with the City waiving the sixplex development charges, we're seeing the next phase of a policy progression that's fundamentally changing who gets to develop in Toronto.
The Citizen Developer Revolution
The fourplex development charge waiver didn't just increase development volume. It changed the entire developer profile.
Property owners started looking at their portfolios differently. They began asking themselves whether additional density made financial sense for their specific properties.
This created what we call "citizen developers." Regular property owners who realized they could participate in Toronto's housing solution while building wealth through strategic property improvements.
The shift was dramatic. Development stopped being exclusively the domain of large-scale builders.
The Financial Tipping Point
Understanding why the fourplex waiver worked requires looking at the brutal math property owners faced before.
Development charges increased over 1,000% in fifteen years. A one-bedroom unit that cost $4,985 in development charges in 2009 hit $52,676 by 2024.
Those numbers made small-scale development financially impossible for most property owners.
The waiver eliminated charges that could range from $200,000 to $270,000 per project. Suddenly, the math worked.
But here's what we learned from our project database: the biggest wins came from property owners who could work with their existing homes. Building new fourplexes remained (and still remains) risky. Converting existing properties has offered the best return on investment for our clients.
The key was striking the balance between investment required and returns generated through property value increases and improved cashflow.
Sixplex Math Changes Everything
The sixplex waiver amplifies these opportunities significantly.
With all six units exempt from development charges, property owners can now achieve ROI levels that make even more complex projects financially viable.
The additional two units don't just add revenue. They fundamentally change the economics of utility upgrades and construction costs.
But there's a catch most people don't see coming.
The Utility Reality Check
Utilities have always been the real bottleneck in multiplex development.
Standard residential properties come with 200-amp electrical service and 1.25-inch water lines. Sixplexes require 400-amp service and at least 1.5-inch water lines.
These upgrades aren't optional. They're mandatory for sixplex projects to operate properly.
The costs vary dramatically based on local infrastructure. Sometimes you can upgrade to 400-amp service for $10,000. Other times, it costs two or three times that amount.
Having a construction team who can effectively work with Toronto Hydro, Toronto Water, and Enbridge becomes essential for avoiding unnecessary problems and cost overruns.
Why Scarborough Leads This Evolution
Not all Toronto neighborhoods are equally positioned for sixplex development.
Scarborough stands out for several reasons. The lot sizes naturally accommodate this type of redevelopment. Many properties already have multi-unit configurations. The neighborhoods can handle the larger utility demands sixplexes require.
There's also a demographic advantage. Scarborough demographics show 14% of households are multi-generational families, with the second-highest number of people per household in Canada.
This creates natural familiarity with multi-unit living arrangements.
The infrastructure in many Scarborough areas was built to accommodate higher density from the start.
The Momentum Builds
The progression of no development charges from fourplexes to sixplexes represents more than an incremental policy change.
Each successful fourplex project provides proof of concept for the next level of development. Property owners who might have been hesitant about four units start considering six.
Contractors develop expertise in utility upgrades and permitting processes. The entire ecosystem becomes more efficient.
The removal of sixplex development charges doesn't just create new opportunities. It builds on proven success from the fourplex program.
Making It Work for Your Property
The key to successful multiplex development remains the same whether you're considering four units or six.
Start with a thorough analysis of your existing property. Not every home is suitable for conversion, but many have configurations that can support duplex or triplex development at a minimum.
Focus on reducing construction requirements wherever possible. The largest cost is always construction, so minimizing the work needed reduces risk and improves returns.
Work with professionals who understand the utility upgrade process and have established relationships with Toronto's utility providers.
The development charge waivers remove significant financial barriers. But success still depends on careful planning, realistic cost analysis, and proper execution.
We've built our project database specifically to help property owners understand their options and make informed decisions about multiplex development opportunities.
The sixplex waiver creates unprecedented opportunities for citizen developers ready to participate in Toronto's housing evolution.
About BVM Contracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, new home construction, multi-unit renovations, garden suite construction, and laneway suite construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations and home building projects in Toronto, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.