5 Strategic Benefits of Converting Your Ottawa Home Into a Multiplex Under Bill 23 and the New Official Plan

For decades, Ottawa homeowners have relied on steady property appreciation as a cornerstone of their retirement strategy. However, new provincial legislation, evolving zoning regulations, and a critical housing shortage have reshaped the landscape.

The introduction of Bill 23 and Ottawa's New Official Plan (effective 2026), which permit three to four units on most standard lots and up to 8-10 units on properties along major corridors, has opened a significant but time-sensitive opportunity for longtime owners to reposition their assets for higher value.

Here are the five strategic benefits that matter most when evaluating whether to convert your property into a multiplex—particularly for those seeking a clean, high-value exit or long-term wealth building.

1. Realizing Higher Total Asset Value

A single-family home yields a single transaction.

A multiplex produces multiple end products, each tailored to a specific buyer segment—downsizers, young families, multi-generational households, and professionals seeking modern homes in established neighborhoods.

From a valuation standpoint, the aggregate sale price of three to four newly constructed units frequently exceeds the market value of the original single-family home. This reflects a broader pattern observed in urban markets: density unlocks value, and newly built inventory commands a premium over aging stock.

Ottawa-specific advantage: With the city's 1.1% vacancy rate and growing population, demand for missing-middle housing is exceptionally strong. Properties that once sold as single units now have the potential to be subdivided and sold as individual condos or strata units, capturing significantly higher total proceeds.

Homeowners can now assess the build potential of their specific lot using direct consultation with builders like Ottawa General Contractors, who provide free zoning reviews and project proformas for Ottawa properties.

2. Avoiding the Pain of Being A Landlord Without Liquidating at a Discount

Longtime landlords often feel trapped between operational fatigue and unfavorable market conditions. Increased regulations, aging buildings, rising maintenance costs, and new rent control measures make landlording increasingly unattractive in retirement.

Converting a property into a multiplex and selling the units offers a complete exit from operational responsibilities, without the need to manage tenants, handle repairs, or engage in long-term oversight. It transforms an active asset into a finished product ready for market sale and allows the owner to step away from day-to-day involvement entirely.

For Ottawa landlords managing older properties in established neighborhoods like the Glebe, Old Ottawa South, or Hintonburg, this represents an opportunity to monetize decades of ownership while avoiding the discount that often comes with selling a tired rental property.

3. Capturing Value Before the Market Adjusts

Bill 23 and Ottawa's New Official Plan represent some of the most meaningful zoning changes in Ottawa's recent history. Yet market pricing has not fully absorbed the implications of expanded multiplex allowances and corridor upzoning.

This creates a temporary but powerful opportunity:

• Land is still valued largely as single-family stock
• But it now supports significantly more density (3-4 units citywide, 8-10 units on major/minor corridors)
• The uplift created by this new density has not yet been capitalized into land values

Owners who redevelop early stand to capture this arbitrage. Over time, land prices will likely recalibrate upward as multiplex development becomes more common and competition for eligible lots intensifies.

Critical advantage under Bill 23: Development charges have been eliminated for projects under 10 units, removing a cost barrier that previously ranged from $40,000+ per additional unit. This cost savings goes directly to the bottom line for early movers.

Understanding your property's eligibility—whether it's on a major corridor (potentially 8-10 units) or a standard residential lot (3-4 units)—is the first step in understanding the magnitude of this policy-driven opportunity.

4. Acquiring a More Competitive Asset in Today’s Market

Aging single-family homes face growing challenges: dated interiors, inefficient layouts, deferred maintenance, and high operating costs. These deficiencies force sellers to discount or wait for market cycles to improve.

Multiplex redevelopment solves this by delivering new, attractive, energy-efficient homes that align with current buyer preferences:

• Smaller, lower-maintenance homes for downsizers
• Modern units for young families
• Multi-unit options for multi-generational buyers
• Turnkey alternatives for investors seeking new product

In many Ottawa neighborhoods—particularly along transit corridors like Bank Street, Montreal Road, and Baseline Road—new multiplex units outsell older single-family homes in both speed and price-per-square-foot.

Additional benefit: Ottawa's New Official Plan allows up to 3 storeys (11 metres) citywide, meaning you can build vertically to maximize unit count and living space without requiring variances or rezoning.

5. Greater Flexibility in Accessing and Structuring Retirement Liquidity

Perhaps the most overlooked advantage is the flexibility a multiplex provides in orchestrating a retirement exit.

Homeowners can choose to:

• Sell all units individually, maximizing total proceeds
• Sell a portion of the units and retain one for legacy or family use
• Sell the entire completed building to a single purchaser
• Presell units to secure revenue before construction completion

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This optionality allows owners to tailor their exit to financial, lifestyle, and estate-planning goals rather than relying on a single lump-sum sale of an aging home.

Ottawa-specific financing: The MLI Select program rewards projects that increase housing supply. Ottawa projects converting single homes into 3-4 units, or building coach houses, can qualify for exceptional financing terms—often better than traditional commercial loans.

Conclusion: A High-Value Exit Aligned With the Needs of Longtime Ottawa Homeowners

For homeowners who purchased decades ago, the decision is no longer between continuing as landlords or selling into an uncertain market. The multiplex pathway provides a more strategic alternative: it maximizes asset value, eliminates operational burden, leverages new density allowances, and creates flexible liquidity options aligned with retirement planning.

The first step is understanding the potential of your specific property.

Is your property eligible? Reach out to Ottawa General Contractors at ottawageneralcontractors.com and request a free zoning review and project proforma. Our team can assess your property's potential under Bill 23 and the New Official Plan, and provide clarity on whether multiplex redevelopment is the right strategic move for your next chapter.

Ready to explore your options? Contact us today for a no-obligation consultation and discover how Ottawa's new zoning bylaws can help you unlock the full value of your property.

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