In many Canadian cities, growth has traditionally meant the development of new subdivisions on the outskirts, featuring detached homes and expansive road networks. However, recent shifts in land costs, affordability challenges, population growth, and public policies have compelled builders to focus more on constructing multi-unit housing rather than solely expanding outward with new subdivisions.
A comprehensive analysis conducted by CBC News, examining 15 years of data from the Canada Mortgage and Housing Corporation (CMHC) in seven mid-size cities including London, Kitchener-Waterloo, Halifax, Abbotsford, Nanaimo, Kelowna, and Victoria, highlights the evolving growth patterns beyond Canada’s major urban centers. Across these communities, apartments, row housing, and other forms of multi-unit dwellings now account for a significant portion of new construction, with nine out of every 10 homes built in Victoria, Abbotsford, and Kitchener-Waterloo falling under this category.
Notable transformations have been observed in cities like Nanaimo, where multi-unit construction made up only a fraction of total development in 2010 but surged to represent two-thirds of the market by 2025. Similarly, London and Kelowna experienced a 50% increase in multi-unit shares, transitioning their development focus from single-family homes to high-density residences within just 15 years.
This trend signifies a paradigm shift in mid-size Canadian cities, traditionally perceived as urban areas offering more space, now embracing multi-unit housing at unprecedented rates. However, this transition has revealed a significant divide not on the necessity for more housing, but on the type of housing required and the target demographic it serves.
Despite a building boom in Halifax that saw a rise in multi-unit constructions since 2010, the city’s housing crisis remains unresolved. Ren Thomas, an associate professor at Dalhousie University, pointed out that the majority of housing developments are profit-driven, resulting in a lack of affordable options for many residents. The emphasis on high-profit units has exacerbated affordability issues, with the city abandoning plans to include affordable housing units in new projects to maintain economic viability.
While the growth of apartments and subsequent rent hikes in Halifax may be slowing down, with CMHC data indicating that these buildings accounted for around 85% of all housing starts in 2025, rental prices for turnover units are significantly higher compared to the overall average. This shift towards pricier units reflects the escalating costs of construction as developers increasingly focus on denser housing solutions.
Kartik Singla, a partner at SDG Canada, noted that mid-sized cities offer more favorable conditions for developers compared to larger markets, where land costs are lower but rents remain relatively high. The financial viability of projects often hinges on density, with the scale of developments influencing their feasibility, though affordability for renters may not always be guaranteed.
Despite the push towards larger developments, there are concerns about the sustainability of such shifts. Activists like Kate Kaikkonen in London are advocating against extreme density projects that strain existing infrastructure and disrupt neighborhood dynamics. The potential repercussions of high-density projects, especially in areas unprepared for such intensity, raise questions about the long-term viability and impact on local communities.
Looking ahead, market conditions may influence developers to revert to smaller, lower-risk projects in response to changing demands and financial considerations. This anticipated shift in development patterns, already observed in larger cities like Toronto and Vancouver, could reverberate across smaller cities, shaping the future landscape of construction and housing markets.