How zoning reforms are changing what real estate agents actually sell

The Greater Toronto Area has undergone significant zoning changes in recent years that impact a property and its potential, allowing everything from garden suites to multi-family homes to be built on the site of a single-family home. These potential uses can increase the value of the property, so it is up to the agent and seller to rethink what they are selling, says Mark Heinrichs of

in Toronto.

“What does this all mean? The government, through both zoning reforms and direct incentives, is encouraging the development of multi-family housing on what are currently single-family lots,” Heinrichs says.

“They are actively (working) to make development more financially attractive and it is up to sellers and agents to understand what developers are already doing: that the product you are selling is not the same product you bought all those years ago.”

Why many sellers don’t see the full potential of their property

He says, “According to the Toronto Regional Real Estate Board and housing inventory data from Statistics Canada, 65 to 70 percent of homeowners in the GTA purchased their properties before 2018, when the zoning changes really came into effect. This is a huge pool of potential sellers who are fundamentally unaware of the true potential of their property.”

NP Zoning Consultants specializes in Zoning Approved Architectural Permissions (ZAAP) reports that “synthesize the current zoning information for a property and inform both the seller and buyer of where, how and what can be built on this property, down to the square meter,” says Heinrichs, who attended McGill for his bachelor’s degree, graduated from the University of Toronto with a Masters of Architecture in 2019 and founded his company in 2023.

“A seller might look at his property and see a $1.2 million bungalow [while] a developer sees a $2.1 million development site,” he says. “Our goal is to provide the data to prove that difference to your sellers (so they get listed with you) or your buyers so they bid with confidence.”

A decade of zoning reforms and incentives

He says a general overview of the zoning changes made in the GTA in less than a decade:
2018 – avenue suites
2021 – parking requirements reduced
2022 – garden suites
2023 – multiplexes
2024 – Update of avenues and mid-rise buildings
2025 – six plexes from right

Additionally, there have been additions to government incentive programs to spur development:
2023 – Housing Accelerator Fund
2023 – Abolition of taxes on new purpose-built rental properties
2024 – Apartment construction loan program
2025 – home design catalog and development fee waiver

A market shift, not a market slowdown

Heinrichs says there is enormous pressure on governments to reduce housing costs. Despite immigration reforms, the GTA still has more people than houses.

“The average real estate agent might view this reality as indicative of a prolonged period of decline: people can’t afford houses, there is economic uncertainty,” he says. “This isn’t necessarily the case if you consider these properties as potential locations for multifamily development. What it might mean for the savvy real estate agent is just a pivot in how you think about the product you’re selling.”

Source: NP Zoning Consultants

A ‘win-win-win’ for sellers, agents and buyers

The company’s value-added service is a win-win-win for everyone involved, Heinrichs says. The seller can increase the asking price based on the potential of the property, the agent can benefit from a higher sales price and commission, and the buyer knows how the property can be developed without repurposing.

“The developer is happy because they didn’t have to do as much legwork in finding a development site,” he says.

The company’s ZAAP report is a concise summary that includes all changes based on existing zoning plans – an advantage in a process that can otherwise be costly and time-consuming.

If the project is not deemed worthwhile after a preliminary analysis, the property owner will be notified at the outset. However, Heinrichs says that this is not the case in nine out of ten reviews.

From bungalow to sixplex

An example is a building in Toronto’s Cedarvale neighborhood. The 1,200-square-foot bungalow was for sale when the agent hired the services of NP Zoning Consultants. The analysis showed that, if done correctly, the bungalow could be replaced with a 6,500-square-foot six-plex and an alley-front suite.

“The information prompted a number of builders to bid on the house,” Heinrichs said.

The company serves the GTA, with most of its customers in Toronto due to development pressures. NP Zoning Consultants has served 75 to 100 clients to date and plans to expand to other locations.

Prices range from $500 to $6,000, with the typical destination report costing around $2,000.