Toronto's Hidden Housing Revolution: Families Are Rebuilding the City One Duplex at a Time

By Demetri Kafkis | Urban Planner & Realtor

For years, Toronto’s housing crisis has been defined by skyrocketing prices, low supply, and declining affordability. But while headlines focus on government policy and market volatility, a quieter revolution is happening — led by everyday families transforming their single-family homes into multi-unit rental properties.

These modest yet powerful transformations are reshaping aging neighborhoods, creating new housing supply, and helping families build generational wealth—all without changing the character of Toronto’s beloved residential streets.

(Photo taken from MLS)

From Bungalow to Multiplex: A Real Case Study

Let’s take a closer look at what’s possible — not in theory, but in practice.

📍 Project: 319 Mortimer Avenue, Danforth Village

This modest bungalow was transformed into a 4-unit income property through strategic planning, legal construction, and use of Toronto’s new multiplex and garden suite policies.

What was done:

• The main house was converted into three self-contained rental units

• A 1,286 sq. ft. garden suite was built in the backyard and split into two bachelor units

That’s four rental units on one standard residential lot — all legal, fully permitted, and professionally managed.

The Financial Payoff

Here’s what the numbers look like in today’s market:

Unit	Size	Estimated Sale Price	Estimated Monthly Rent
Unit 1	1,406 sq. ft.	$999,900	$3,300
Unit 2	501 sq. ft.	$499,900	$1,800
Unit 3	1,895 sq. ft.	$1,599,900	$4,500
Unit 4 (Garden Suite)	1,286 sq. ft.	$1,299,900	$3,500

Total Value Created: Over $4.4M

Total Monthly Rental Income: Around $12,000

All from a single-family lot that once had one household and no rental income at all.

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This isn’t a one-off.

Across Toronto, homeowners are reimagining what a single-family property can be—thanks to major policy shifts that have made multiplexes, laneway houses, and garden suites not just possible, but practical.

In 2023 alone, Toronto issued over 1,100 permits for secondary suites — a 36% jump from the year before.

With rents at all-time highs and the cost of living climbing, families are adding second and third units to:

• Offset mortgages

• House extended family

• Build long-term rental income

• Create multi-generational living without moving

The Policies Making it Happen

These city-wide reforms have unlocked serious value:

1. Multiplex Zoning Reform — Up to 4 units now allowed city-wide

2. Garden Suite Legalization — Build legal homes in your backyard

3. CMHC MLI Select — Low-interest financing & rebates for rentals

4. No Parking Minimums — More design freedom, fewer hurdles

Together, these policies give regular homeowners the same tools developers use—without the red tape or overhead.

Led by Locals, Not Developers

What’s driving this shift isn’t big money or corporate investment—it’s families.

Like the Patels in East York, who converted their detached home into a triplex for their kids, grandparents, and a tenant.

Or Kevin and Jess in Danforth Village, who built a laneway suite for $400,000 behind their semi and now rent it out for $3,700/month—more than covering property taxes and utilities.

These aren’t speculative flips or mega towers.

They’re modest, smart infill projects. They preserve neighborhood character, increase density without disruption, and help fill Toronto’s “missing middle” — the crucial housing supply between condos and detached homes.

How to Join the Movement

So how can you get started? Here’s a quick roadmap for homeowners thinking about turning their property into a rental-generating duplex or triplex:

1. Zoning Check

Most Toronto neighborhoods now allow up to four residential units per lot. Start by checking your property’s zoning and setbacks.

2. Budget Smartly

Expect to spend $250K–$400K on a quality Garden suite , depending on layout, finishes, and basement condition. Garden suites cost more but offer high ROI.

3. Financing Options

Consider a refinance, construction loan, or home equity line of credit (HELOC). Many lenders now recognize rental income in mortgage qualification.

4. Build Your Team

You’ll need an experienced contractor, architect, and planner. Or reach out to professionals like us at Kafkis Realty, who specialize in turnkey duplex and triplex development.

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The Bottom Line

Toronto doesn’t need to wait for mega-developers to solve its housing crisis. The city’s next wave of affordable, sustainable, and community-friendly housing is already here—and it’s happening one lot at a time.

So whether you’re a homeowner sitting on a bungalow or an investor with an eye for smart urban planning, now is the time to build smart, rent well, and take part in Toronto’s quiet housing revolution.

Want to learn more about converting your property into a legal duplex or adding a garden suite?

📩 Contact Demetri Kafkis at info@kafkisrealty.ca or visit www.kafkisrealty.ca for a free consultation.

At Kafkis Realty, we bring together urban planning, design, permits, construction, and leasing — all in-house.

We help families like yours:

• Evaluate your property’s potential

• Design and get approvals

• Build garden suites or multiplexes

• Rent and manage the units long-term

Whether you’re looking to generate income, house extended family, or increase your property’s value, we can guide the entire process from idea to key handoff.