Ontario Real Estate · Policy Intelligence Series · Updated 2024
What it means for real estate investors · Community winners & losers · Housing type analysis
Part 1 of 2 — Bill 23 · Provincial Planning Statement to followBill 23 is Ontario's most sweeping housing reform in decades. It cuts fees for builders, speeds up approvals, limits municipal red tape, and explicitly enables more density on single-family lots — all designed to flood the market with new supply. For investors, it reshapes where, what, and how much to buy.
Aurora, Markham, Richmond Hill, Brampton, Oakville, Burlington, Ajax, Whitby — these communities now control their own planning. Previously filtered through a regional layer, they gain faster approvals, direct DC revenue, and flexibility to attract development. Expect accelerated subdivision and intensification activity.
Protected Major Transit Station Areas must now have zoning updated within 1 year of official plan policies coming into effect. Transit-adjacent land in the 905 and Toronto suburbs is being legally fast-tracked for high density. These corridors are the most protected against future downzoning.
Schedule 10 forces York and Durham to expand the York-Durham Sewage System and the Lake Simcoe phosphorus project. This is direct provincial infrastructure spending to unlock growth capacity. Land banked near these systems' expansion corridors stands to benefit most.
"Parcel of Urban Residential Land" is now a defined legal concept: serviced lots in settlement areas can carry up to 3 units (main house + secondary + garden suite) with no DC on the additional units. A bungalow lot in Oshawa, Barrie or Guelph is now a triplex opportunity without a rezoning battle.
Bill 23 dramatically tightens heritage protections for non-designated properties. Properties on municipal registers must be designated within 2 years or removed from the list. The province can exempt Crown and priority projects from heritage compliance. If you hold or are buying in a heritage conservation district, expect increased scrutiny of amendments/repeals and reduced certainty.
Exterior design is no longer subject to site plan control (except for accessibility and safety matters). Municipalities can no longer enforce architectural standards. This levels the playing field — but also means the premium you charged for "approvals-backed" design quality in new communities may compress as lower-cost builds proliferate nearby.
Simcoe is named as an upper-tier municipality without planning responsibilities. Lower-tier towns (Barrie, Collingwood, Innisfil, Bradford) now drive their own planning. Innisfil in particular — with its Orbit transit node concept and rapid growth — is worth watching for rezoning opportunities as local planning becomes more nimble.
Non-profit housing developments are now 100% exempt from DCs, parkland, and community benefit charges. This changes the competitive landscape: non-profit developers can move faster and cheaper. Landowners in areas targeted by non-profit builders (Hamilton, Ottawa inner suburbs) may see increased land demand — but also new competition for tenants.
| Housing Type | Bill 23 Impact | DC & Fee Changes | Investor Verdict |
|---|---|---|---|
| Detached → Triplex Conversion (Existing house, add 2 units) |
Fully legalized on serviced urban lots province-wide. No rezoning. No appeal possible by neighbours. | Zero DCs on the 2nd and 3rd units. No minimum floor area rules. Max 1 parking space per unit required. | Strong Buy Lowest-friction path to income density in established neighbourhoods. |
| Garden Suite / Laneway (Ancillary unit on lot) |
Now as-of-right on parcels of urban residential land where house has ≤2 units. No committee hearings. | Zero DCs on the garden suite unit. No parking requirement. No minimum size by-law permitted. | Strong Buy Best ROI improvement for single-family lot holders in serviced 905/Toronto suburbs. |
| Purpose-Built Rental (4+ units) (New apartment buildings) |
Rental developments get DC discounts by bedroom size. Faster approvals via Ontario Land Tribunal reforms. | 15% off studio/1-bed DCs, 20% off 2-bed, 25% off 3-bed+. Instalment payments over 6 years. | Favourable DC savings directly improve yield. 3-bed rental units now particularly competitive to build. |
| Affordable / Attainable For-Sale (Under 80% of avg price) |
Full DC exemption for 25 years if unit sold/rented at ≤80% of average market. Agreement registered on title. | Zero DCs. Zero parkland dedication. Reduced community benefits charge. Non-profit version: all fees waived. | Specialist Play Not a typical investor product but opens joint venture opportunities with non-profits. |
| Condo (High-Rise / Mid-Rise) | Site plan approvals faster; exterior design review removed. Reduced parkland fees for affordable-mix projects. | No direct DC exemption unless affordable units included. DC phase-in (80/85/90/95%) for new by-laws years 1–4. | Neutral-Positive Savings marginal unless mixed with affordable units. Speed improvements help pro forma certainty. |
| Land Lease Community Homes | Specifically carved into site plan and subdivision rules. Exception from Greenbelt land lease rules. | Subject to site plan if on parcel with any number of units. Standard DCs may apply. | Niche Growing product type in exurban Ontario; more legal clarity helps operators. |
| Single Detached (New Subdivision) | Upper-tier planning removal speeds up subdivision approvals in Durham, York, Peel, Halton, Waterloo, Niagara. | DC phase-in on new by-laws years 1–4 (80–95%). Parkland rate cut: max 1ha per 600 net residential units (was 500). | Positive Faster approvals offset by supply increase. Best in high-demand lower-tier municipalities. |
| Heritage / Character Properties | Tightened listing rules: 2-year designation deadline or removal. Province can override heritage for transit/housing priorities. | No fee changes but development potential may increase as listings lapse. | Risk Hold period uncertainty if under heritage review. Opportunity if listing lapses and redevelopment opens. |
Any new DC by-law must charge only 80% in year 1, scaling up to full rate in year 5+. This creates a window: developments that can get building permits while a by-law is in its first four years pay significantly less. Track when municipalities renew their DC by-laws — the first year after renewal is your cost sweet spot.
York, Durham, Halton, Peel, Waterloo, Niagara, and Simcoe counties no longer have planning authority over lower-tier municipalities. Official plans that existed at the regional level are "downloaded" to lower tiers. Watch for divergence: some lower-tier towns will embrace growth aggressively, others will not. This creates arbitrage between adjacent municipalities.
The law explicitly states there is NO appeal right against official plan policies or zoning by-laws that permit 2nd and 3rd units on residential lots. This is rare legislative certainty. If your lot is on serviced urban land, you can build the triplex without a Committee of Adjustment or OMB-style hearing — even neighbours cannot appeal.
Parkland cash-in-lieu funds and DC reserve funds for water, wastewater, and roads must have 60% spent or allocated every year. This reduces the political incentive to accumulate fees without building infrastructure — and theoretically accelerates servicing timelines in growth communities.
The alternative parkland rate threshold doubled: from 1ha per 500 units to 1ha per 600 units. For projects with affordable/attainable units, the parkland obligation is proportionally reduced based on the share of market units. Big win for mixed-income high-rise projects in core urban areas.
The OLT can now dismiss proceedings where a party caused undue delay, and can order losing parties to pay winning parties' costs. This materially changes the calculus for NIMBYs using appeals as a delay tactic. Approval timelines for contested projects should shorten — improving investor return predictability.
Bill 23 is only Part 1. The Provincial Planning Statement (PPS) 2024 overlays land use policy direction on top of these legal changes — determining which specific communities are designated for growth, what densities are mandated, and where protected countryside begins. Upload the PPS document and we'll map it directly against the Bill 23 framework above to give you the full picture.
Informational purposes only. This analysis is a high-level summary of Bill 23 (More Homes Built Faster Act, 2022) for general investor education. It does not constitute legal, financial, or investment advice. Specific provisions may be subject to proclamation, regulation, or municipal implementation that affects their practical application. Always consult a qualified real estate lawyer, planner, and financial advisor before making investment decisions. Policy details accurate as of Royal Assent November 28, 2022 with ongoing regulatory amendments.