How zoning reform is changing what agents are really selling

What are you really selling and what is it really worth? How can you give your seller, and yourself, an advantage in today’s market?

The Greater Toronto Area has seen sweeping zoning changes in recent years that affect a property and its potential, allowing everything from garden suites to multi-family dwellings to be built on the site of a single-family home. These potential uses can increase the value of the property, so it behoves the agent and the seller to rethink what they’re selling, says Mark Heinrichs of

in Toronto.

“What does this all mean? The government, through both zoning reform 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 appealing and it is up to sellers and agents to understand what developers already do: that the product you are selling is not the same product you purchased all those years ago.”

Why many sellers don’t see their property’s full potential

He says, “According to the Toronto Regional Real Estate Board and housing stock data from Statistics Canada, 65 to 70 per cent of homeowners in the GTA purchased their properties prior to 2018, which is when the zoning changes really started taking effect. This is a massive quantity 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 current zoning information for a property and educate both seller and buyer on where, how and what can be built on this property, down to the square foot,” says Heinrichs, who attended McGill for undergrad, graduated from the University of Toronto in 2019 with a Masters of Architecture and started his company in 2023.

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

A decade of zoning reform and incentives

He says a general overview of the zoning changes made in the GTA in less than a decade are:
2018 – laneway suites
2021 – parking requirements reduced
2022 – garden suites
2023 – multi-plexes
2024 – avenues and mid-rise update
2025 – six-plexes as of right

Additionally, there have been additions to government incentive programs to encourage development:
2023 – housing accelerator fund
2023 – removal of taxes on new purpose-built rentals
2024 – apartment construction loan program
2025 – housing design catalogue and development charge waiver

A market shift, not a market slowdown

Heinrichs says there is massive pressure on governments to alleviate housing costs. In spite of immigration reform, the GTA still has more people than homes.

“The average agent might view these realities as indicative of a prolonged down period — people can’t afford homes, there is economic uncertainty,” he says. “This isn’t necessarily the case if you view these properties as potential sites for the development of multi-family housing. What it can mean for the savvy realtor is merely a pivot in how you are thinking about the product you are 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 all involved, Heinrichs says. The seller can increase the asking price based on the property’s potential, the agent can benefit from a higher selling price and commission, and the buyer will know how the property can be developed without rezoning.

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

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

If, after a preliminary analysis, the project is deemed not worthwhile, the property owner is told at the outset. However, Heinrichs says that is not the case in nine out of 10 assessments.

From bungalow to six-plex

One example is a property in Toronto’s Cedarvale neighbourhood. The 1,200-square-foot bungalow was being listed for sale when the agent procured NP Zoning Consultants’ services. The analysis determined that, if done correctly, the bungalow could be replaced with a 6,500-square-foot six-plex and a laneway suite.

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

The company services the GTA, with most clients 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 zoning report costing about $2,000.