Canada's Mid-Size Cities: A Housing Crisis and the Fight for Affordable Living (2026)

Canada's mid-size cities are undergoing a quiet revolution in their growth patterns. For decades, these cities have been expanding outward, with new subdivisions and detached homes dominating the landscape. However, a recent shift in development trends is challenging this traditional approach. Builders are now focusing on multi-unit housing, a move that is reshaping the urban fabric and raising important questions about affordability and community needs. This transformation is particularly evident in cities like Victoria, Abbotsford, and Kitchener-Waterloo, where apartments and row houses are becoming the norm.

One of the key drivers of this change is the rising cost of land. As developers face increasing pressure to build more housing to meet demand, multi-unit projects offer a more cost-effective solution. This is especially true in mid-size cities, where land prices are lower compared to larger metropolitan areas. However, this shift is not without its challenges. While the math may work for developers, it doesn't always translate to affordable housing for renters.

In Halifax, for instance, the surge in multi-unit construction has not solved the city's housing crisis. Ren Thomas, an associate professor at Dalhousie University, argues that the majority of housing is market-driven, and the focus on high-profit units has left many residents struggling to find affordable options. The city's decision to drop plans for including affordable units in new developments highlights the tension between market forces and community needs.

The pressure to build big is also evident in Kelowna, where a 43-storey tower is set to become one of the tallest buildings between Vancouver and Calgary. However, this scale comes with risks, as residents displaced during construction sue the university for alleged ground movement damage to nearby buildings. This case underscores the challenges of balancing density with community well-being.

The 'missing middle' in housing development, which refers to mid-scale projects like townhouses and small apartment buildings, is another area of interest. While these projects offer greater affordability and choice, they face significant hurdles. In Ontario, recent legislation has pushed approvals ahead of construction, creating a disconnect between planning and development. Alicia Monteith, a planner, notes that even modest infill projects can get tangled in local fights, making the 'missing middle' among the hardest projects to deliver.

Community resistance to high-density development is another factor at play. In London, activist Kate Kaikkonen and her neighbors are pushing back against a proposal to replace single-family homes with nearly 300 units across eight storeys. They argue that the neighborhood wasn't built for such intensity and that the infrastructure can't support it. This highlights the importance of considering neighborhood needs and context in development planning.

The shift towards larger buildings in mid-size cities may not be sustainable in the long term. As market conditions soften, developers may pivot back to smaller, lower-risk projects. Anthony Passarelli, the lead CMHC economist for Southern Ontario, predicts a shift towards low- to medium-rise buildings as developers seek to minimize risk. This could have significant implications for smaller cities, which may eventually follow the same pattern of what gets built and what sells.

In conclusion, Canada's mid-size cities are at a critical juncture. The shift towards multi-unit housing is reshaping the urban landscape and raising important questions about affordability and community needs. While the math may work for developers, it is crucial to consider the broader implications for residents and neighborhoods. As cities grapple with the housing crisis, finding a balance between market forces and community well-being will be essential to building sustainable and inclusive urban environments.

Canada's Mid-Size Cities: A Housing Crisis and the Fight for Affordable Living (2026)
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