The Flex Haus Solution: Easing London, Ontario's Housing Affordability Crisis

In London, Ontario, an innovative housing concept is making waves and offering hope to first-time homebuyers who have been priced out of the market. Known as 'Flex Haus,' this new type of starter home is designed with affordability and multi-functionality in mind.

Originating from more expensive metropolitan areas like Toronto and Vancouver, the Flex Haus incorporates an up-to-code secondary unit into its design. Homeowners can either rent these units out or share them with extended family members to help cover mortgage payments.

This approach is gaining traction locally, as the city strives to address escalating home prices. With the provincial government promoting secondary units to boost extra income sources amid tough economic conditions, London has seen a notable rise in building permits for such properties.

In 2023, 260 building permits for secondary units were issued—an impressive 24% increase from the previous year. This year alone has already seen 176 permits approved by May, indicating the growing popularity of these alternative housing options.

Leading the charge in London is Ironstone Building Co. President Dave Stimac and his team are pioneers in incorporating these secondary units directly into new home designs. The company's first Flex Haus project came about after provincial regulations were relaxed to facilitate the inclusion of secondary dwellings.

Stimac explains that they initially faced challenges converting existing homes into Flex Haus, but soon realized integrating these units into new builds was far more efficient. 'London's always been a great market for affordable homes, but prices have surged over the last five to seven years,' Stimac notes.

To make these homes even more accessible, Ironstone partnered with RBC to factor potential rental income into the mortgage application process. This collaboration eases the financial burden on buyers and helps them qualify for loans more easily. Ironstone also assists buyers in obtaining rental licenses and offers guidance on managing rental properties.

So far, Ironstone has constructed 15 Flex Haus homes, with 12 already sold. Stimac is confident in the concept's potential and plans to make these units a substantial part of their inventory with an additional 15 homes in the pipeline.

'We're trying to make it a larger portion of our inventory,' Stimac says. 'People are starting to understand the benefits, and we're investing more resources into this concept.'

Other developers in London are beginning to follow suit. Jared Zaifman, CEO of the London Home Builders’ Association, notes an increased interest in multi-generational and flexible housing options from various builders, indicating a shift towards more inclusive housing solutions.

The Flex Haus concept offers a practical and impactful approach to easing London's housing affordability crisis. As more developers adopt similar strategies, the dream of homeownership could become a reality for many priced-out first-time buyers in the city.