Unlocking Canada’s Housing Supply: The Case for Secondary Suites
TORONTO, March 13, 2026 (Newswire.com) — With housing affordability increasingly becoming a pressing issue in Canada, urban planners, policymakers, and real estate developers are focusing on an underutilized asset: the backyard. Secondary suites—including basement apartments, garden suites, and laneway homes—are emerging as a powerful, economically viable solution for expanding Canada’s housing stock without the hefty infrastructure demands of sprawling new developments. Ladan Hosseinzadeh Sadeghi, President & CEO of Sky Property Group Inc., emphasizes that the discussion surrounding secondary suites is long overdue.
The Untapped Potential of Backyards
"Canada has millions of single-family lots in established neighborhoods, many of them dramatically underused," says Hosseinzadeh Sadeghi. Secondary suites and garden suites are not panaceas, but they represent smart, incremental solutions that could add tens of thousands of housing units without the need for new infrastructure. "We need to be building in every direction—including in existing backyards," she adds.
The Housing Crisis: Numbers Speak
According to the Canada Mortgage and Housing Corporation (CMHC), Canada requires approximately 3.5 million additional homes by 2030 to restore affordability to 2004 levels. Such a formidable challenge cannot be addressed through a singular approach. However, secondary suites could substantially contribute to bridging the gap.
A 2025 analysis by the University of Toronto’s School of Cities found over 400,000 single-family and semi-detached lots in the Greater Toronto Area that could accommodate secondary units. If just a portion of these sites were utilized, the increase in rental and ownership housing supply would be significant.
Financial Viability
The economics of secondary suites are compelling as well. Construction costs range from $150,000 to $350,000—significantly cheaper than purchasing a condominium unit in urban centers like Toronto, Vancouver, or Ottawa. For homeowners grappling with high mortgage rates, rental income from a basement or garden suite can mean the difference between financial stability and distress.
Legislative Shifts: Provinces Take Action
Ontario made significant strides in 2022 by mandating that municipalities allow up to three residential units on any serviced lot, effectively legalizing garden suites province-wide. British Columbia followed with reforms in 2023 to ensure that secondary suites were permitted in all single-family zones.
While other provinces are lagging, there is mounting pressure from housing advocates, the federal government, and the private sector. The federal Housing Accelerator Fund has spurred municipalities to reform zoning and streamline permitting processes for secondary units.
"The provinces that act quickly on secondary suites will see real, measurable results within three to five years," says Hosseinzadeh Sadeghi. "These projects aren’t prolonged; a well-designed garden suite can be built and occupied in under a year, making them essential to our housing strategy."
Quality Over Quantity: The Role of Developers
While public discussions often focus on homeowner-built additions, professional developers are increasingly entering this space. Companies like Sky Property Group Inc. are working on offerings that streamline the planning and construction process for secondary suites.
"Quality matters enormously," asserts Hosseinzadeh Sadeghi. "A poorly designed unit can undermine the primary home’s value. We need to promote designs that tenants will be proud to live in, adding lasting value to properties."
Sky Property Group is collaborating with architects to explore standardized designs for garden suites, aimed at optimizing them for typical lot sizes in cities dominated by single-family homes.
Overcoming Financing Barriers
Despite the promise of secondary suites, one major hurdle remains: financing. Traditional mortgage products often fail to accommodate homeowners looking to borrow against rental income from non-existent units. While some Canadian lenders are introducing renovation mortgages that account for projected rental income, such options remain underutilized.
"The financing gap is real and hinders thousands of Canadian homeowners who wish to build but cannot access the necessary capital," states Hosseinzadeh Sadeghi. She advocates for targeted interventions like the Secondary Suite Loan Program, which offers low-interest financing options and has been a step in the right direction but is still insufficient to meet demand.
A Comprehensive City-Building Strategy
The merits of secondary suites extend beyond merely adding housing units. These developments boost population density in established neighborhoods, supporting public transit, local businesses, and community services. They offer elderly family members an independent living space close to relatives and create pathways to homeownership for first-time buyers.
"Good city-building is about layering density thoughtfully," says Hosseinzadeh Sadeghi. "Secondary suites are a respectful way to add density without straining communities."
For Sky Property Group Inc., secondary suites are not just a policy issue but also a crucial opportunity for responsible development in urban markets.
"We are in a housing crisis," Hosseinzadeh Sadeghi asserts. "Every viable solution deserves serious consideration. It’s time to build."
About Sky Property Group Inc.
Sky Property Group Inc., a Toronto-based real estate development and property management company, focuses on responsible, community-oriented urban development. Under the leadership of Ladan Hosseinzadeh Sadeghi, the company is committed to addressing Canada’s pressing housing supply and affordability challenges.
For media inquiries, please contact:
Ladan Hosseinzadeh Sadeghi
ladanhosseinzadehsadeghi@gmail.com
SOURCE: Sky Property Group Inc.
