Toronto Sees Significant Rise in Small-Scale Infill Housing Projects

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An analysis from CMHC reveals a notable increase in small-scale infill housing projects in Toronto and other Canadian cities, reflecting a shift in housing development strategies.

In a significant development for the Toronto housing market, small-scale infill projects have surged from a negligible segment of housing starts to a more substantial portion in a mere two years, as highlighted by a recent analysis from the Canada Mortgage and Housing Corporation (CMHC). In 2025, these smaller projects, which include accessory dwelling units and buildings with two to eight units, made up 6.45% of the total housing starts in the city. This figure represents a remarkable increase from just 0.62% in 2023, indicating a growing trend towards more diverse housing options in urban areas.
The momentum in small-scale infill is not limited to Toronto. Other Canadian cities have also experienced a notable rise in this type of development. Vancouver reported that small-scale infill projects accounted for 18.07% of its total housing starts in 2025, up from 13.22% in 2023. Edmonton's growth has been even more pronounced, with its share increasing from 9.95% to 23.28% during the same period. Calgary has also shown robust growth in small-scale infill, according to CMHC.
Despite the overall slowdown in housing starts in Ontario, CMHC pointed out that small-scale infill projects in Toronto have continued to rise. This trend is crucial as it reflects a shift in housing development strategies, particularly in urban areas where the availability of undeveloped land is limited. The national housing agency has indicated that residential-to-residential infill conversions have emerged as a prominent form of “missing middle” housing development in Toronto, surpassing traditional single- and semi-detached starts.
CMHC's data indicates that during the first half of 2025, over four times as many housing units were initiated through conversion compared to the combined starts of single- and semi-detached homes on new foundations. This shift is significant as it illustrates how infill conversions are becoming a viable solution to the housing shortage, particularly in densely populated areas.
The increase in small-scale infill projects can be attributed, in part, to recent zoning reforms. In May 2023, Toronto City Council approved as-of-right permissions for multiplexes of up to four units, facilitating the development of duplexes, triplexes, and fourplexes in previously restricted areas. The city has since expanded these permissions, now allowing for five and sixplexes in nine of its 25 wards.
This regional growth aligns with a broader national trend in how new housing is being delivered across Canada. CMHC estimates that small-scale infill accounted for approximately 10% of the total housing starts in the country last year. Although single-detached housing starts have seen a decline since 2016, the uptick in small-scale infill has helped to offset some of this decrease. According to CMHC, the share of small-scale infill in total housing starts was declining until around 2023, when it began to rise sharply, surpassing levels seen in 2016.
The timing of this reversal coincides with the launch of initiatives such as the Housing Accelerator Fund and various municipal and provincial reforms, including Bill 23 in Ontario and Bill 44 in British Columbia. These measures have facilitated the development of small-scale infill housing on lots that traditionally hosted single-family homes.
While the growth of small-scale infill is noteworthy, it is essential to recognize that larger infill developments remain predominant in Canada. CMHC estimates that infill projects with nine units or more constituted 63% of national housing starts last year, pushing the share of total starts on previously developed land to 60.17%. This marks a significant increase from the figures recorded a decade prior, which were 42% and 54.5%, respectively.

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