Announced in June, Toronto is taking major steps to address its housing supply crisis, pushing forward a suite of planning reforms that open the door to significant new residential development in low-rise neighbourhoods, along key transit corridors, and on existing apartment sites.These measures, approved by the City’s Planning and Housing Committee, are designed to support the Province of Ontario’s target of 285,000 new homes in Toronto by 2031 and follow through on commitments under the City’s $471 million Housing Accelerator Fund agreement with the federal government.A neighbourhood intensification report suggests Toronto’s capacity to add new housing units across existing low-rise neighbourhoods is supported. It estimates that the City’s suite of gentle density initiatives, including laneway suites, garden suites, multiplexes, and major street housing, could generate up to 54,600 new homes by 2031, and 163,785 by 2051. This data is being used to guide future zoning and infrastructure planning.A related Multiplex Monitoring Report also confirmed the growing uptake of multiplex construction under previous bylaw changes and recommended targeted bylaw refinements to streamline implementation. This includes potential clarifications on servicing, parking, and building code coordination, to further smooth the path for small-scale multi-unit development.Expanding Low-Rise Density Across Residential NeighbourhoodsOne of the most consequential changes is the proposed citywide legalization of six-unit multiplexes on all residential lots. This reform removes the current patchwork of permissions and restrictions by allowing both new sixplex construction and conversions of existing detached or semi-detached houses into up to six dwelling units, as-of-right.The policy also introduces clearer standards on building height (typically up to four storeys, including basement), lot frontage, and floor area, while aligning development charges for multiplexes and garden suites to simplify planning and reduce cost ambiguity. For investors, this reform means more units per lot without rezoning, faster timelines, and lower friction during approvals.Encouraging Mid-Rise Housing Along Transit CorridorsThe City is also revisiting its “Avenues” policy to support more mid-rise buildings (six to 11 storeys) along key transit corridors. Phase Two of the Avenues Review will identify where density increases can be best accommodated and streamline planning rules to enable “missing middle” housing forms near rapid transit, shops, and amenities. This aligns with provincial and federal objectives for transit-oriented growth and aims to build out complete, walkable communities.For developers, this signals a shift toward pre-zoning and clearer frameworks in areas traditionally burdened with site-by-site planning battles, reducing delays and making land assembly more viable.Unlocking Apartment Sites for Infill DevelopmentA key proposal is the Apartment Infill Study, which recommended zoning changes that would allow the construction of new housing within existing apartment tower sites. These changes would apply to over 5,000 existing properties across the city.Landowners would be able to convert underused spaces like surface parking lots, open spaces, or underbuilt footprints into new rental units or mixed-income housing, without the need for rezoning or full site plan control in many cases. The changes would exempt certain small additions from requirements around parking and massing, significantly lowering barriers to densification.This strategy leverages existing infrastructure and preserves existing rental stock while expanding capacity, ideal for institutional investors and building owners looking to increase NOI without teardown or displacement.Tracking the City’s Development PipelineThe City also released a Development Pipeline 2024 report detailing the largest recorded housing pipeline in Toronto’s history. Between 2020 and 2024, Toronto saw 854,898 proposed units, 2,335 development applications, and delivered half of all housing completions in the Greater Toronto Area. This was double the numbers in the 1990s.This pipeline confirms investor interest in Toronto’s real estate sector remains strong, and with these newly adopted reforms, many of these proposals will face fewer regulatory bottlenecks going forward.Implications and ImpactsToronto’s reforms mark a shift in the city’s housing strategy, from isolated pilot projects and neighbourhood-by-neighbourhood rezonings to broad, citywide permissions and structural zoning modernization. More units, less red tape: As-of-right approvals for sixplexes and streamlined permissions for certain infill projects should reduce legal and planning costs.New markets for gentle intensification: Single-family zones citywide are now viable for multi-unit redevelopment.Clearer rules and lower costs: Streamlined charge schedules and zoning standards remove uncertainty.Apartment asset optimization: Infill on rental tower sites creates new income while maintaining existing rental units, with reduced need for rezoning in many cases.Transit corridor scale-up: Planned policy changes are expected to expand permissions for larger, mixed-use investment opportunities.The combination of citywide sixplex zoning, expanded apartment infill permissions, and targeted mid-rise intensification aims to lay the groundwork for a more flexible, scalable housing supply strategy; it will be important to monitor impacts and developments as a result of these changes.