Recently, a significant decision by Toronto City Council has sparked renewed debate about the city’s approach to addressing its housing crisis. In a move that disappointed many housing advocates, Council voted to allow sixplexes—buildings with up to six residential units—in only nine of Toronto’s 25 wards, with an option for more suburban wards to opt in. This decision, which diverged from a broader commitment tied to $471 million in federal funding through the Housing Accelerator Fund in 2023, has raised concerns about Toronto’s ability to tackle its housing shortage effectively. (We may miss out on almost half a billion in federal money because of how limited the sixplex vote outcome was). For prospective buyers, current homeowners, and Tembo clients, this development carries significant implications for the Greater Toronto Area (GTA) housing market.

What Happened?

The decision to limit sixplex legalization to just nine wards represents a cautious step toward increasing housing density in Toronto. Sixplexes are part of the “missing middle” housing category—mid-sized residential buildings that bridge the gap between single-family homes and high-rise condos. These structures are seen as a critical tool for increasing housing supply in established neighborhoods, offering family-sized homes that could ease affordability pressures. The city’s commitment to legalizing multiplexes was a condition of receiving substantial federal funding, which aimed to accelerate housing development across Canada. However, the partial rollout of the sixplex policy has put this funding at risk and highlighted the challenges of implementing bold housing reforms. Rather than adopting a city-wide approach, the council’s decision allows suburban wards to opt in, leaving significant portions of Toronto untouched by this policy change. Mayor Chow was severely criticized for showing ‘weakness’ in not pushing for or achieving a stronger outcome in this critical vote. Headlines were harsh.

The lack of strong leadership in advocating for a broader implementation has frustrated those who see increased density as a key solution to the city’s housing woes. This outcome underscores a broader issue: the difficulty of balancing local resistance to change with the urgent need for more housing. Implications for the Toronto Housing Market The GTA’s housing market is one of the most expensive in Canada, with the average home price in Toronto hovering around $1.1 million as of early 2025, according to recent data from the Toronto Regional Real Estate Board (TRREB). The partial legalization of sixplexes is unlikely to significantly alleviate this pressure in the short term, as it limits the scale of new housing development. For the broader GTA market, this decision signals a continued reliance on high-rise condos and single-family homes, which dominate the region’s housing stock. While condos have proliferated in downtown Toronto, they often cater to investors or smaller households, leaving a gap for family-sized homes in desirable neighborhoods. The “missing middle” approach, exemplified by sixplexes, could have provided a solution by allowing more diverse housing options in areas with access to transit, schools, and amenities.

Without city-wide adoption, however, the impact of this policy will be muted, potentially exacerbating affordability challenges. For prospective buyers in Toronto, the limited sixplex policy is a missed opportunity to increase the supply of affordable, family-friendly homes. Many young professionals and families are priced out of the market, with even modest condos or townhouses in the GTA requiring incomes well above the median. The partial implementation of sixplexes means fewer new units will be built in the near term, keeping competition fierce and prices high. First-time buyers, in particular, may continue to face challenges finding homes that meet their needs without stretching their budgets to the breaking point. For those considering entering the market, this development highlights the importance of exploring alternative financing options. Tembo Financial specializes in private lending and second mortgages, can provide solutions for buyers who need quick access to funds or who may not qualify for traditional bank loans. For example, Tembo’s services can help bridge the gap for buyers looking to secure a property in a competitive market or renovate an existing home to increase its value.

GTA Housing Market Trends

The GTA housing market remains a complex landscape. While Toronto’s urban core grapples with affordability, suburban areas like Mississauga, Brampton, and Vaughan have seen significant price growth, with detached homes averaging between $1.2 million and $1.5 million, according to TRREB. Condo sales, which surged during the pandemic, have cooled slightly due to higher interest rates, but demand for family-sized units remains strong. The region’s population growth, driven by immigration and inter-provincial migration, continues to fuel housing demand, with an estimated 100,000 new residents arriving in the GTA annually. The sixplex decision also reflects a broader challenge in the GTA: resistance to densification in established neighborhoods. Suburban councils and residents often oppose zoning changes, citing concerns about infrastructure, traffic, and neighborhood character. Yet, without increased density, the GTA risks perpetuating a cycle of unaffordability that pushes younger generations and lower-income households to the margins of the region or out entirely.

For Toronto to address its housing crisis, bold action is needed to increase supply across all housing types. The partial sixplex policy is a step in the right direction but falls short of the transformative change required. Prospective buyers should remain proactive, exploring creative financing options like those offered by Tembo Financial to navigate the competitive market.