Can Missing Middle Housing Save Our Cities from a Supply Crisis?

Why Canada's Future Depends on Housing We Used to Ignore; The Rise of "Missing Middle" Housing Across Urban Canada

When we talk about housing affordability in cities, we often think in terms of two extremes: sprawling single-family homes or towering high-rise condos. But in between those options lies a long-overlooked solution that's making a comeback: Missing Middle housing.

These are buildings that range from duplexes to stacked townhomes and low-rise apartments, homes that deliver more affordability and density without drastically changing the character of a neighborhood.

According to a recent CMHC report, housing starts for these mid-density types surged by 44% between 2023 and 2024 across six of Canada’s biggest cities: Toronto, Vancouver, Calgary, Edmonton, Ottawa, and Montréal.

Why This Matters for Buyers and Investors

In a city, the benefits of Missing Middle housing are easy to see:

• More attainable pricing for families priced out of the detached market

• Smaller lot sizes, which make it easier and faster to build

• Infill development potential, meaning these homes can go into existing neighborhoods without full-scale rezoning

• Faster timelines, reducing carrying costs for developers and speeding up supply

These homes also offer unique opportunities for multi-generational living, rental income, or downsizing without giving up community connections.

Which Cities Are Leading the Charge?

While demand is growing across Canada, Edmonton and Calgary are leading the way in Missing Middle construction. These cities offer more favorable land costs, pro-density planning rules, and an increasingly skilled group of local builders who know how to bring these projects to life.

Here's a quick breakdown:

One thing that's particularly striking is how the type of Missing Middle housing being built varies from city to city.

This chart shows that while some cities like Ottawa rely heavily on row homes, others like Montréal and Vancouver are seeing more development in low-rise apartments and accessory suites. These trends reflect not only policy differences but also land availability, developer experience, and buyer preferences.

What’s Holding Back Faster Adoption?

Even though Missing Middle housing is on the rise, there are still roadblocks:

• Outdated zoning that prioritizes single-family homes

• Community resistance to infill density (often called "NIMBYism")

• Construction and financing hurdles for smaller developers

But as affordability pressures mount and the need for more supply grows urgent, more municipalities are rethinking their strategies.

Why Now Is the Time to Act

For homeowners, investors, and even renters, Missing Middle housing is more than a trend—it's part of the long-term solution to housing scarcity. These homes make better use of land, offer greater flexibility for families, and can be added more quickly and affordably than large condo towers.

If you're considering your next move, exploring development options, or looking for the right property in a shifting market, understanding the rise of Missing Middle housing could be a game changer.

Reach out to explore your options—I can help you align your financing and home search with Canada’s next major housing shift.