In many GTA neighbourhoods, older bungalows are being torn down, expanded or joined by new units because their wide lots are valuable for redevelopment. Ontario rules now allow up to three residential units on most serviced urban lots, which has added basement suites and garden suites to bungalow streets. For owners, that can mean more options and value. For neighbours, it can mean change.
Key takeaways
- Many mid-century bungalows sit on lots larger than today’s typical new-build lots.
- Bill 23 allows up to three units on most serviced urban residential lots.
- Infill brings more housing and new families, but also construction and taller homes.
- Owners and buyers should check zoning, permits and neighbourhood plans.
Why bungalow lots attract redevelopment
Most GTA bungalows were built in the post-war decades, when land was cheaper and lots were generous. Today, that land is often worth more than the house sitting on it.
Builders and owners see several opportunities:
- Rebuilding a larger single-family home.
- Adding a second storey to the existing bungalow.
- Adding units, like a basement apartment and a garden suite.
- Severing a wide lot into two, where zoning allows.
In some parts of Toronto, Mississauga and Vaughan, you can see this on almost every street: original bungalows next to new two-storey custom homes.
What Ontario’s rules now allow
Ontario’s More Homes Built Faster Act (Bill 23, 2022) lets most urban residential lots with municipal services have up to three units. For example, a main house, a basement suite and a garden suite.
That doesn’t mean anything goes. Each project still needs to meet:
- The municipality’s zoning by-law (setbacks, height, lot coverage).
- The Ontario Building Code.
- The Fire Code, including fire separation and safe exits.
- Building permits and inspections.
Some cities, including Brampton, also require second units to be registered. If you’re in Toronto, our guide to garden suites in Toronto explains the city’s approach.
Types of bungalow infill compared
| Type of change | What it looks like | Typical impact on the street |
|---|---|---|
| Full teardown and rebuild | Larger two-storey home on the same lot | Bigger massing, new look, long construction |
| Second-storey addition | Existing bungalow gets a new upper floor | Taller home, keeps original footprint |
| Basement suite | Rental or family unit in the lower level | Little visible change, more residents and parking |
| Garden suite | Small detached unit in the backyard | Mostly hidden from the street |
| Lot severance | One lot becomes two | Two new homes where one stood |
The positive impacts of bungalow infill
Gentle density can help neighbourhoods in several ways:
- More housing without building new suburbs on farmland.
- Rental options for young adults, seniors and newcomers.
- Support for local shops and schools as more people live nearby.
- Multigenerational living, with family members close but independent.
- Better use of existing infrastructure, like roads, sewers and transit.
The concerns neighbours raise
Change isn’t always welcome. Common concerns include:
- Loss of mature trees and green space.
- Larger homes casting shade or reducing privacy.
- Parking pressure on the street.
- Construction noise and disruption.
- Changes to the neighbourhood’s look and feel.
If you’re worried about a project next door, start by talking with the owner. Many builders will share timelines, fencing plans and contact details for problems during construction.
Municipalities address some of these through tree protection by-laws, zoning limits and Committee of Adjustment hearings, where neighbours can comment on variance requests.
Bungalow tip: If you’re buying a bungalow on a street with lots of rebuilds, check the Committee of Adjustment decisions for that area. They show what variances have been approved nearby, which hints at what you might be able to do with your own lot.
What infill means for bungalow owners and buyers
If you own a bungalow
Your lot may have options you haven’t considered: a rental suite, a garden suite, an addition or, in some cases, a severance. Talk to a designer or planner before making plans, and check with an accountant about the tax side of rental income.
You don’t have to change anything, either. Many owners simply keep their bungalow and enjoy the extra yard. Knowing your options helps when it’s time to sell, since buyers may value the lot’s potential.
If you’re buying
Know what you’re paying for. In high-demand areas, part of a bungalow’s price reflects the lot’s potential. If you want to keep the home as is, that’s fine, but you’ll compete with builders and renovators.
Our guide on adding to a bungalow covers additions and second storeys. If you’re shopping with redevelopment in mind, browse investor-friendly bungalows or fixer-upper bungalows.
Frequently asked questions
Can I build three units on my bungalow lot?
On most serviced urban residential lots in Ontario, up to three units are allowed. Your plan must still meet local zoning, the Building Code and the Fire Code, and you’ll need permits.
Does infill lower property values on a street?
Not necessarily. New homes and added units can show strong demand for an area. Effects vary by street and by the quality of what’s built.
Can my neighbour tear down their bungalow and build a bigger house?
Usually yes, if the new home meets zoning rules. If they need a variance, you’ll typically get notice and a chance to comment at the Committee of Adjustment.
The bottom line
Bungalow teardowns and infill are part of how GTA neighbourhoods are adding homes. For owners, they open up new possibilities. For buyers, they explain why bungalow lots are in such demand.
Understand the rules, look at what’s happening on nearby streets, and get professional advice before you build.
