When we hosted our “Unpacking Multiplexes” events in Toronto and Vancouver, both rooms sold out. What stood out wasn’t just the appetite for information — it was the mix of people in the audience: experienced investors alongside first-time buyers, small developers, homeowners, real estate agents and professional service providers. Many of these attendees wouldn’t have considered themselves real estate investors two or three years ago.
Next stop: Edmonton on June 11. Purchase tickets here.
This shift matters. Multiplexes are not a fleeting trend; they are becoming a realistic path back into property ownership for people who were priced out of single-family homes.
How we got here
Affordability has slipped significantly. CMHC’s affordability ratio in Toronto rose from 59 percent of household income in 2019 to 74 percent in 2024. Nationally, affordability moved from 39 percent to 54 percent over the same period. For many working households in Toronto, Vancouver, Montreal and Halifax, the math on buying a single-family home no longer adds up.
CMHC’s June 2025 supply gap report estimates Canada needs about 450,000 new units per year through 2035 to return to 2019-level affordability — roughly double the current pace. Closing that gap requires different housing types and different buyers building them.
What’s changed (and where)
Three major changes across Canada over the last 24 months have opened the door for multiplex development:
Zoning reform from coast to coast. B.C.’s Bill 44 legalized small-scale multi-unit housing province-wide (up to four units, and six near transit). Toronto’s By-law 654-2025 permits five- and six-unit buildings as-of-right across the former Toronto and East York district and Ward 23. Edmonton’s Zoning Bylaw renewal allowed up to eight-unit small-scale residential on most lots, while Calgary’s 2024 rezoning made R-CG the base residential designation. Quebec, Halifax and Ottawa are following similar paths.
Development charge relief. Toronto fully waived development charges for buildings up to six units, saving roughly $200,000 to $270,000 per project. Other municipalities have adopted reduced or deferred charges. For independent developers, these savings often determine whether a project is financially viable.
Federal financing. CMHC’s MLI Select offers up to 95 percent loan-to-value, up to 50-year amortizations and premium discounts for projects that meet affordability, energy or accessibility targets. These terms apply whether it’s a fiveplex in Halifax, a 12-unit infill in Edmonton, or a mid-rise rental in Vancouver. CMHC’s multi-unit insurance products supported more than 283,000 units in 2024, up 28.7 percent from 2023.
As a result, someone with equity can now underwrite a five- or six-unit project that would have required an institutional partner a few years ago in many Canadian markets.
CMHC MLI Select
MLI Select is CMHC’s mortgage loan insurance product for purpose-built rental projects with five or more units. The program awards points for commitments to below-market rents, higher energy performance and accessibility features — prioritizing Affordability, Accessibility and Energy Efficiency.
Benefits grow with points achieved:
- 50 points: up to 85 percent LTV, longer amortization, 10 percent premium discount
- 70 points: up to 95 percent LTV, up to 50-year amortization, 20 percent premium discount
- 100 points: maximum benefits, including a 30 percent premium discount
In July 2025 CMHC moved to a risk-based premium model with surcharges for amortizations beyond 25 years. Any pro forma prepared before mid-2025 should be updated and stress-tested against conservative scenarios, as rents have softened and vacancies are rising in some markets.
Three different doors into the same building
Multiplexes are now accessible to three distinct types of buyers, each with different motivations:
For traditional investors, multiplexes often offer better leverage, longer amortizations and stronger cash flow than single-family rentals, especially when combined with MLI Select financing.
For small developers and builders, as-of-right zoning, fee relief and faster permits mean projects that once required institutional scale are now feasible for independent teams. Since multiplex zoning began in May 2023, Toronto has issued 452 multiplex building permits and received over 750 applications — more than triple the prior three years combined. Edmonton, Calgary and several B.C. municipalities are seeing similar momentum. Most of these projects are renovations or retrofits led by smaller operators rather than large builders.
For homeowners, the opportunity is often underestimated. In many cities, a buyer priced out of a detached home can qualify for the same property configured as a multiplex, live in one unit and rent the others to offset mortgage costs. In Toronto, multiplexes are delivering family-sized two- and three-bedroom units at a higher rate than new condos, averaging around 1,140 square feet — a trend repeating in other cities as zoning evolves. For owner-occupiers, this is one of the most practical affordability tools Canada has seen in years.
What Alberta proves
Alberta’s markets provide strong evidence this approach can scale quickly. Edmonton’s Zoning Bylaw Renewal, effective January 2024, triggered rapid uptake: row house starts in mature neighbourhoods rose from an average of 146 units per year (2019–2023) to over 1,200 in 2024. By 2025, five- to eight-unit buildings outnumbered single-family home permits in the city for the first time. Edmonton recorded 21,337 housing starts in 2025, its highest ever.
Calgary, despite political debate around its 2024 rezoning, led all Canadian cities in housing starts per capita in 2025, with multifamily accounting for roughly 70 percent of new activity. Together, Alberta produced nearly a quarter of Canada’s housing starts in 2025 while representing under 12 percent of the population.
The risks
There are real risks to consider. Construction labour shortages are lengthening schedules. Rental demand has softened in Toronto and Vancouver amid slower international migration. CMHC premium changes have increased the cost of high-leverage construction financing compared with 18 months ago. Resale markets for completed fourplexes and sixplexes remain thin, so many operators plan these projects as long-term holds rather than quick flips.
Multiplexes are not a guaranteed win. They offer a more accessible entry to a housing market that had become largely out of reach for many Canadians. That is significant, but success still requires the right property, realistic underwriting and the right team.
Why we keep running these events
These events fill up because developers, lenders, brokers, architects and operators use them to work through real deals together. The questions get sharper, pro formas more realistic, and networks stronger. In 2026, multiplexes are neither the safest nor the easiest investment in Canada, but they are among the most accessible opportunities with genuine upside for a broad range of Canadians.
Join us at the next event
Our “Unpacking Multiplexes” series is expanding across the country through 2026.
Next stop, Edmonton. Join us at the Fringe Theatre on June 11 at 6 pm: purchase tickets here.
Sponsorship and speaking opportunities: contact [email protected].
With thanks to our sponsors and partners
CMHC, Vancity, KV Capital, Small Housing BC, BLD Financial, City of Edmonton, City of Toronto, Lanescape, Dorr Capital, Calvert MIC, Liv.Rent, Theorem Developments, and many more.