TORONTO, ON / ACCESS Newswire / March 13, 2026 / As housing affordability continues to strain households across Canada, a growing number of urban planners, policymakers, and real estate developers are turning their attention to one of the country's most underutilized assets: the backyard. Secondary suites - basement apartments, garden suites, and laneway homes - represent a powerful, lower-cost tool for expanding Canada's housing stock without the infrastructure burden of large-scale greenfield development. For Ladan Hosseinzadeh Sadeghi, President & CEO of Sky Property Group Inc., the conversation around secondary suites is long overdue.
Aerial view of a Toronto residential neighbourhood featuring a modern garden suite.
"Canada has millions of single-family lots in established neighbourhoods, many of them dramatically underused," says Ladan Hosseinzadeh Sadeghi. "Secondary suites and garden suites are not a silver bullet, but they are an intelligent, incremental tool that can add tens of thousands of units to our supply without requiring entirely new infrastructure networks. We need to be building in every direction - including in existing backyards."
Canada's Housing Supply Gap - By the Numbers
According to the Canada Mortgage and Housing Corporation (CMHC), Canada needs to build approximately 3.5 million additional homes by 2030 to restore affordability to 2004 levels. The challenge is enormous - and no single approach will close the gap. Yet secondary suites, if unlocked at scale, could contribute meaningfully to the solution.
A 2025 analysis by the University of Toronto's School of Cities estimated that the Greater Toronto Area alone contains over 400,000 single-family and semi-detached lots with the physical potential to accommodate a garden suite or secondary basement unit. If even a fraction of these were built out, the result would be a measurable, city-wide increase in rental and ownership housing supply.
The economics are compelling too. Secondary suites typically cost between $150,000 and $350,000 to construct - far less than a condominium unit in Toronto, Vancouver, or Ottawa. For homeowners struggling with mortgage costs in a high-interest-rate environment, rental income from a basement suite or garden suite can make the difference between financial stability and distress.
A modern secondary suite interior - bright, well-designed, and purpose-built for quality tenant living.
The Policy Shift: Provinces Begin to Move
Ontario took a significant step forward in 2022 when it mandated that municipalities permit up to three residential units on any serviced lot - effectively legalizing garden suites province-wide. British Columbia followed with its own sweeping reforms in 2023, requiring that secondary suites be permitted in all single-family zones across the province.
Other provinces have been slower to act, but pressure from housing advocates, the federal government, and the private sector is building. The federal Housing Accelerator Fund has specifically incentivized municipalities to reform zoning and streamline permitting for secondary units.
"The provinces that act quickly on secondary suites will see real, measurable results within three to five years," says Ladan Hosseinzadeh Sadeghi of Sky Property Group Inc. "These are not projects that take a decade to plan and build. A well-designed garden suite can be constructed and occupied in under a year. The speed advantage alone makes them an essential part of the housing toolkit."
Ladan Hosseinzadeh Sadeghi, President & CEO of Sky Property Group Inc., leads strategic development planning.
Design, Quality, and the Developer's Role
While much of the public discourse around secondary suites focuses on homeowner-built additions, the professional development community has a growing role to play. Several Canadian companies - including boutique developers and prefabricated housing firms - are now offering turnkey secondary suite solutions, from design and permitting through construction and property management.
Sky Property Group Inc. has been closely watching this segment of the market as it evolves. According to Ladan Hosseinzadeh Sadeghi, the next wave of secondary suite development in Canada's largest cities will look quite different from the ad hoc basement conversions of the past.
"Quality matters enormously," she says. "A poorly designed secondary suite that doesn't meet sound insulation standards, has inadequate natural light, or lacks a proper separate entrance actually undermines the value of the primary home. What we need to encourage - through policy and professional standards - is the construction of secondary suites that tenants are genuinely proud to live in and that add lasting value to the property."
Sky Property Group has been working with architects and urban designers to explore how garden suite typologies can be standardized and optimized for a range of lot sizes common in Toronto, Hamilton, London, and Ottawa - cities where single-family housing still dominates large portions of the residential landscape.
Financing: The Missing Link
One of the most significant barriers to secondary suite construction in Canada remains financing. Traditional mortgage products are not well-suited to homeowners who wish to borrow against future rental income from a unit that doesn't yet exist. Several Canadian financial institutions have begun offering renovation mortgage products that factor in projected rental income, but uptake remains limited.
"The financing gap is real, and it is holding back thousands of Canadian homeowners who want to build but can't access the capital to do it," says Ladan Hosseinzadeh Sadeghi. "This is an area where the federal government, through CMHC, could play a transformative role - by designing and guaranteeing loan products specifically tailored to secondary suite construction. It would be a relatively low-cost intervention with enormous supply-side impact."
The federal government's Secondary Suite Loan Program, launched in 2024, offered up to $40,000 in low-interest financing for eligible homeowners - a step in the right direction, though housing analysts broadly agree that the funding envelope was insufficient to meet demand.
A prefabricated garden suite under installation in a Canadian suburban backyard - a fast, cost-effective approach to expanding housing supply.
A City-Building Strategy, Not Just a Policy Fix
Ultimately, the case for secondary suites goes beyond housing units and rental income. Garden suites and basement apartments add population density to established neighbourhoods, supporting local transit ridership, small businesses, and community services. They allow aging parents to live near family in independent, purpose-built spaces. They offer a pathway to homeownership for some buyers, who can use rental income to qualify for larger mortgages.
"Good city-building is about layering density thoughtfully," Ladan Hosseinzadeh Sadeghi reflects. "Secondary suites are one of the most respectful, lowest-disruption ways to add density to a mature neighbourhood. Done well, they strengthen communities rather than strain them."
For Sky Property Group Inc., the company's focus on thoughtful, community-oriented development in Canada's urban markets means secondary suites are firmly on the radar - as a policy issue to advocate for, and as a development opportunity to explore.
"We are in a housing crisis," says Ladan Hosseinzadeh Sadeghi. "Every legitimate tool on the table deserves serious attention. Secondary suites have been overlooked for too long. It's time to build."
About Sky Property Group Inc.
Sky Property Group Inc. is a Toronto-based real estate development and property management company led by President & CEO Ladan Hosseinzadeh Sadeghi. The company focuses on responsible, community-oriented development across the Greater Toronto Area and Canadian urban markets, with a commitment to addressing Canada's housing supply and affordability challenges.
Media Contact:
Ladan Hosseinzadeh Sadeghi
ladanhosseinzadehsadeghi@gmail.com
SOURCE: Sky Property Group Inc.
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/real-estate/unlocking-canadas-hidden-housing-capacity-the-case-for-secondary-suites-and-garden-suit-1147416
