Consultation on Minimum Lot Sizes

The government is seeking public feedback on proposed legislative and regulatory changes under the Fighting Delays, Building Faster Act, 2025 to streamline the construction of new homes and infrastructure (e.g., water, wastewater, roads, transit), reduce gridlock, enhance community safety, and improve landlord-tenant frameworks.

In connection with this Bill, the government is consulting to better understand the linkages between setting minimum lot size requirements on urban residential lands and increased housing options, improved affordability, and expanded access to homeownership across Ontario. For greater clarity, the geographic focus for this consultation is parcels of urban residential land as defined in the Planning Act. 

Minimum Lot Sizes on Urban Residential Properties in Ontario

Municipalities have broad authority under the Planning Act to establish zoning by-laws that are specific to the geographies identified in them. Zoning by-laws regulate the use of land, buildings and structures in a community. They may specify matters including permitted uses, building orientation, building heights, setbacks, permitted densities, lot coverage, and parking requirements. This includes the ability to set minimum lot sizes, i.e., the smallest permissible size for a property.

A number of municipalities across Ontario set minimum lot sizes to distinguish between various low-density residential zones. There are some municipalities that define up to ten different low-density residential zones while others define fewer than five. An analysis of Ontario’s large and fast-growing municipalities[1], found that the range of minimum lot sizes permitted varies generally from 270 to 800 square metres (about 2,900 to 8,600 square feet) and minimum frontages permitted range from 6 to 20 metres (about 19.6 to 65.6 feet) for single-detached dwelling lots. Outside of the large and fast-growing municipalities the range for lot sizes tends to be broader and can vary.

Linkages to Housing Options and Affordability

Research indicates that setting minimum lot sizes that are larger than what the market could support may raise housing costs. This could have negative implications for encouraging broader housing options and providing smaller, more affordable homes that meet a broader range of consumer preferences, particularly for starter-homes. These types of lot size restrictions may also make the process of severing a lot (e.g., turning one lot into two lots for independent sale) more difficult, time consuming, and costly.

A literature review has shown that in jurisdictions around the world, reducing or removing minimum lot size requirements in low-density residential areas has generally led to a wider variety of low-rise housing options, increased housing construction, improved affordability, and more inclusive urban development. 

For example, Tokyo, Japan adopted a form-based approached to zoning focusing on the shape and placement of buildings and has no minimum lot sizes. New Zealand removed most of their minimum lot sizes to allow up to three homes on most urban lots. In both cases, evidence indicates an increase in housing approvals, small lot redevelopment and improved housing affordability. A number of jurisdictions in the United States (i.e. Texas, Vermont, Montana, Oregan) have recently reduced residential lot sizes in urban and suburban areas in an effort to address housing supply shortages, promote infill development and broaden low-rise housing options. 

This more permissive approach to lot size requirements may also have the effect of increasing the number of low-rise homes in urban residential settings without significantly changing the neighbourhood’s look and feel.  

Infrastructure, Transportation and Public Health and Safety

The government is focusing this consultation on parcels of urban residential land as defined in the Planning Act (i.e., those which include full municipal water and wastewater servicing). This is because there are circumstances in which minimum lot size requirements continue to play an important role to protect public health, safety and the environment, such as:

• To safely accommodate private wells and/or septic systems;
• Regions with environmental or hazard constraints, such as floodplains or areas with limited soil capacity; and,
• In some cases, to ensure sufficient space for transportation access, stormwater management, or other infrastructure needs.

Consultation Questions

1. What are your thoughts on the benefits and/or risks associated with reducing or removing minimum lot size requirements in low-density urban residential areas to encourage gentle density, increase housing supply, broaden housing options and encourage home ownership?
2. What are best practices observed in other jurisdictions that have introduced minimum lot size reforms?
3. Are there any circumstances where having established minimum lot sizes in municipal zoning by-laws for low-density urban residential parcels are absolutely necessary with respect to the provision of transportation, infrastructure, or upholding public health and safety?
4. Given the Ontario context and the government’s permissions for additional residential units, what do you suggest should be the smallest size urban residential lot in terms of lot area, frontage or depth (i.e. six metre frontage, 200 square metre area, etc.) What would be the opportunities and limitations? How would these standards work together?
5. What other zoning requirements or performance standards could be needed to support any reduction or removal of minimum lot size requirements on low-density urban residential parcels (i.e., additional residential units, multiplexes, parking requirements, lot coverage, height and density etc.)?

Impact on the Environment

As the government is consulting on minimum lot sizes on urban residential properties, there is no impact on the environment at this time. Based on the feedback received, should the government decide to introduce changes, the impact to the environment will be assessed at that time.

As part of this consultation, the government is interested in hearing perspectives on whether reducing or removing minimum lot size requirements on urban residential properties could lead to any unintended impacts on the environment.

Analysis of Regulatory Impact

No legislative, regulatory, or policy changes are being proposed as part of this consultation. The Ministry intends to engage stakeholders to better understand current practices and challenges. Should any changes be considered in the future as a result of this consultation, a Regulatory Impact Assessment will be prepared in accordance with government decision-making processes.