Hamilton and Burlington: Where Multiplex Numbers Work Best Right Now

The strongest multiplex opportunities are not always in the most expensive market. Frequently they are one city over, where land costs less, the housing stock is older and the rental demand is steady.

That is the case across Hamilton and Burlington right now.

Why Hamilton keeps coming up

Hamilton has three things working in its favour for multiplex development:

• Entry cost. Land and development-related charges are generally lower than in Toronto, which changes the arithmetic on a three or four unit building.
• Housing stock. A large share of the lower city was built for single families decades ago, on lots that can often support more units with the right design and approvals.
• Demand. Students, hospital staff and commuters along the GO corridor keep units occupied, and that demand is spread across the year rather than concentrated in one segment.

Older homes also bring the trade-offs: structure, ceiling heights, exits, fire separation and servicing all need to be reviewed before you commit to a conversion rather than a rebuild. We cover that in more detail on our Hamilton page.

Burlington is a different calculation

Burlington sits between the GTA and Hamilton, and its property values reflect it. Residential areas are generally lower density, which means proposals are evaluated property by property. Parking is usually the tightest constraint, and lot coverage limits shape how much building fits.

When the approvals work, the result tends to hold value well. Lakeside neighbourhoods and established subdivisions have shown real staying power, which suits owners planning to hold the property for years rather than flip it. More on how we approach it is on the Burlington page.

What to test before you buy

Whichever city you are looking in, the sequence is the same:

1. Confirm what the zoning on the address permits and what approval, if any, the project needs.
2. Check the lot against the building you have in mind: frontage, setbacks, coverage, parking and servicing.
3. Build a realistic cost range and compare it to expected rents.
4. Only then decide whether to make an offer.

Step three is where optimism usually creeps in. Construction costs across the region are similar, so the difference between a project that works and one that does not is usually the price paid for the land relative to what can be built on it.

Conversions versus new builds

On an older property, a conversion can get you to rental income with less disruption and less site work than a full rebuild. It also comes with structural and code considerations that can only be answered by looking at the building.

A new build costs more up front and gives you control over layouts, sound separation, mechanical systems and metering. Where the lot supports it, that control is often worth the extra spend.

Both routes are in our completed work, which you can browse in the project case studies.