In many Canadian cities, growth traditionally involved expanding outwards with new subdivisions, detached homes, and longer roads. However, factors like rising land costs, affordability challenges, population growth, and evolving public policies have led builders to focus more on constructing multi-unit housing in addition to suburban developments.
A recent analysis by CBC News of 15 years of data from the Canada Mortgage and Housing Corporation (CMHC) in seven mid-sized cities across Canada revealed a notable shift in construction trends. Apartments, row houses, and other multi-unit dwellings now constitute a significant portion of new housing projects, accounting for approximately 90% of homes built in cities like Victoria, Abbotsford, and Kitchener-Waterloo.
For instance, in Nanaimo, multi-unit housing comprised only 10% of new construction in 2010 but surged to two-thirds of the market by 2025. Similarly, London and Kelowna witnessed a 50% increase in multi-unit housing developments, transitioning from a focus on single-family homes to high-density residences within just 15 years.
This shift underscores a changing landscape in mid-sized Canadian cities, traditionally viewed as urban areas offering more space, now embracing high-density living options. However, this transformation has brought to light a growing debate not on the necessity for more housing but rather on the type of housing being constructed and who it caters to.
Despite the construction boom of multi-unit buildings in Halifax since 2010, the city continues to grapple with housing affordability issues. Ren Thomas, an associate professor at Dalhousie University, noted that the emphasis on high-profit units has not addressed the housing crisis, as many residents cannot afford these properties. Thomas highlighted the lack of affordable and supportive housing options and the challenges faced by those in need of such accommodations.
While the surge in apartment developments in Halifax has led to escalating rents, with CMHC data indicating that these units accounted for approximately 85% of all new housing starts in 2025, the cost of rent for turnover units significantly exceeds the average rates. The shift towards pricier units reflects the growing expenses associated with denser housing projects.
In cities like London, Kitchener, and Windsor, the affordability equation for developers is more favorable compared to larger markets like Toronto. Higher land prices but not significantly lower rents make these mid-sized cities attractive for developers, with density playing a crucial role in the financial viability of projects.
However, challenges persist in delivering the “missing middle” housing, such as townhouses and small apartment buildings, due to regulatory complexities and local opposition. Activists in London, like Kate Kaikkonen, are advocating against extreme density projects that strain existing infrastructure and disrupt the character of their neighborhoods.
As market conditions evolve, there is a possibility that developers might revert to smaller, lower-risk projects in response to changing demand and financial considerations. This shift observed in larger cities like Toronto and Vancouver may eventually influence construction trends in mid-sized cities, indicating a dynamic and interconnected housing market across Canada.
