If you’ve been scoping out home listings in Toronto for some time, you may have noticed something interesting – a relatively high number of homes come with built-in secondary suites.

This could include a basement unit with a separate entrance, a partitioned apartment on one floor of the home, or even a freestanding garden or laneway suite. 

For home buyers who aren’t already familiar with Toronto’s standalone real estate market, this trend might be a little confusing. However, there’s a great reason behind it. 

Here’s a look at why so many homes in Toronto feature existing secondary suites. 

Toronto’s Dynamic Housing Profile

As a sprawling and continuously growing city, Toronto has a remarkably unique real estate landscape. With consistently high demand from both buyers and renters, the city has been forced to get creative in building up its housing supply over the years. 

In the face of this challenge, one of the most popular solutions that have emerged is secondary suites. Not only has this distinct type of housing helped to alleviate some pressures related to the inventory shortage, but it also provides unique benefits for renters, investors, and homeowners alike. 

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Moving to Toronto and searching for a home? Check out these articles below for helpful tips. 

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Secondary Suites At a Glance

While they can be located in almost any part of a home or property, it’s important to clarify what actually qualifies as a secondary suite. From a regulatory perspective, a legal secondary suite is defined as a self-contained living space with a private sleeping area or bedroom, washroom, and kitchen. 

Secondary suites are particularly unique in that they benefit almost everyone. For renters, they provide affordable no-frills housing and first-time buyers or those with reduced financial leverage can alleviate some of their costs. Additionally, they’re a great opportunity for real estate investors of all types. This type of win-win scenario is otherwise rare in the realm of Toronto real estate. 

Perks For Homeowners

While owning a home in Canada’s largest city has its rewards, both from a lifestyle and investment perspective, real estate here isn’t always the most affordable. If you’re a buyer who is looking for a home in Toronto, purchasing a property that has a built-in secondary suite could be a positive option for you.

Offsetting this obstacle, secondary suites allow homeowners to earn rental income, which can then be used towards mortgage costs. Just like traditional homes, rental housing is in demand now more than ever. As of 2023, average rental rates in Toronto are at an all-time high. Buying a property with a secondary suite allows the homeowner to capitalize on this momentum.

In addition to earning high-quality passive income in the short term, a home with a built-in secondary suite will continue paying off in the future. When you choose to sell down the line, simply having an income suite on the property will give it a boost in market value. 

Skipping the Red Tape 

While secondary suites have plenty of advantages, adding one to your home can be a fairly involved process with lots of upfront costs and red tape to account for. 

One of the direct perks of purchasing a home that already has one is your ability to avoid the headaches of building a suite from scratch. If you’re interested in owning a home with a secondary suite, talk to your real estate agent. As an expert in the local market, they’ll know where to look to help you find one. 

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Moving to Toronto and searching for a home? Explore these relocator-focused resources from our website. 

• How to Finance a Toronto Home if You’re New to Canada
• Best Toronto Neighbourhoods For Kids
• Working With a Real Estate Agent as a Relocator

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Finding the Right Home For You

Gearing up to purchase a home in Toronto? If so, you’ll want to work with a top-notch real estate professional. That’s where we, Stephanie De Souza & Associates come in. 

With more than a decade of experience, we’ve helped hundreds of buyers like you find their dream homes. Providing first-class service, our innovative strategies turn you into an educated, confident buyer.  

We additionally specialize in working with relocators, so whether you’re new to Toronto or new to Canada altogether, our supportive and stress-free approach to buying ensures you have an enjoyable experience. 

Looking for the right Toronto home? Our specialized buying services can help you find the perfect place to call home while making a strategic long-term investment. Send us an email or call 647.330.5279 to get started.