Over the next five to ten years, bungalows in Canada will likely stay in demand as the population ages and more families live together, while supply stays tight because few new ones get built. At the same time, Ontario’s rules for additional residential units are turning many bungalows into multi-unit homes. This outlook explains the forces at work and what they could mean for owners and buyers.
Key takeaways
- An aging population is likely to keep demand for one-level homes steady.
- High land costs mean few new detached bungalows will be built in big cities.
- Rules allowing up to three units on many Ontario lots add value to bungalows with space.
- Energy efficiency and accessibility will matter more to future buyers.
Force 1: Demographics favour one-level living
Canada’s large baby boomer generation is moving into retirement. Many want to stay in their communities but need homes without stairs. Bungalows are a natural fit.
At the same time, younger buyers and families value one-level living for kids and for aging parents. That broad appeal suggests steady demand, though no one can predict prices with certainty. For more on who buys these homes, read our post on who buys bungalows.
Force 2: Supply will stay tight
A bungalow uses more land per square foot of living space than a two-storey home. In expensive markets like the GTA, builders tend to choose townhomes and taller homes instead.
Existing bungalows also leave the market over time. Some are torn down and rebuilt as larger homes. Others get second-storey additions. As a result, the number of true bungalows in many cities is unlikely to grow much.
Force 3: Additional units change the math
Ontario’s More Homes Built Faster Act (Bill 23, 2022) allows up to three residential units on most urban lots with municipal services. That might mean a main house, a basement apartment and a garden suite.
Bungalows on wide, deep lots are well placed to take advantage. Their full basements and large backyards make extra units easier to plan. Permits, zoning, the Building Code and the Fire Code still apply.
Over time, this could shift how buyers value bungalows. Lot size, a separate entrance and ceiling height in the basement may matter more. See bungalows with a separate entrance for homes already set up this way.
Force 4: Multigenerational living grows
High housing costs and the need for family care are pushing more households to live together. Bungalows with suites or bright lower levels let generations share a property while keeping some privacy. Expect more renovations designed for this purpose.
Some families are also buying bungalows together, with each generation contributing to the purchase. Co-ownership like this needs a clear written agreement, so speak with a real estate lawyer before you sign.
Force 5: Efficiency and accessibility become standard
Future buyers are likely to expect better energy performance and age-friendly design. Upgrades owners are already making include:
- Heat pumps and better insulation
- Energy-efficient windows and doors
- No-step entries and wider doorways
- Curbless showers and main-floor laundry
- EV charger readiness in garages
What’s likely vs what’s uncertain
| Trend | Outlook | Why |
|---|---|---|
| Demand from older buyers | Likely steady | Aging population wants one-level homes |
| New bungalow construction in big cities | Likely limited | High land costs |
| Bungalows with added units | Likely growing | Provincial rules now allow more units |
| Price direction | Uncertain | Depends on rates, economy and local supply |
| Teardowns of older bungalows | Likely continuing in high-value areas | Land value exceeds house value |
Where the market stands today
As of September 2026, the Bank of Canada’s policy rate is 2.25%, after seven straight holds. In the GTA, August 2026 sales were down 2.1% from a year earlier and the average price was down 2.7%, while new listings dropped 14.1%. TRREB describes a market moving toward balance with tightening supply.
Short-term conditions will shift, but the longer-term forces above are likely to keep bungalows relevant. Our Ontario bungalow market update covers the latest numbers.
Bungalow tip: If you’re buying with the long term in mind, look closely at the lot. Width, depth, lane access and basement height may shape a bungalow’s future value as much as its finishes.
What this means for you
For owners
Consider upgrades that match future demand, like accessibility features and energy efficiency. If you have the space, look into whether a legal suite or garden suite is possible.
For buyers
Focus on land, layout and flexibility. A bungalow that can adapt to aging, family changes or rental income may hold its appeal well.
For investors
Bungalows with suite potential remain attractive, but run the numbers carefully and budget for permits. An accountant and a real estate lawyer can help you plan.
Frequently asked questions
Will bungalows go up in value?
No one can guarantee future prices. Strong demand and limited supply support bungalow values, but rates and the economy also play a big role.
Are builders still making bungalows in Canada?
Some are, especially in smaller cities and adult lifestyle communities. In high-cost areas like the GTA, new detached bungalows are rare.
Can I add units to my bungalow in Ontario?
On most serviced urban lots, Ontario allows up to three units. You still need to meet local zoning, the Building Code and permit requirements.
The bottom line
The future of bungalows in Canada looks shaped by aging buyers, scarce supply and new options for extra units. Owners and buyers who think about flexibility today will be best placed tomorrow.
Curious how your bungalow fits into this picture? Get a free home evaluation to see its value today.
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