While national numbers point to a surge in these projects, the story on the ground is far from uniform
Canada’s largest cities have seen a dramatic shift in the construction of “Missing Middle” housing—gentle- to medium-density options like multiplexes, row homes, stacked townhouses, and low-rise apartments—according to new data from the Canada Mortgage and Housing Corporation (CMHC).
While national numbers point to a surge in these projects, the story on the ground is far from uniform.
Between 2018 and 2023, Missing Middle housing starts in Vancouver, Edmonton, Calgary, Toronto, Ottawa, and Montréal grew at an average of 5% annually. That steady pace gave way to a striking 44% jump between 2023 and 2024, with Prairie cities leading the charge.
“Calgary and Edmonton initiated nearly 21,000 units, accounting for 67% of Missing Middle starts across the six centres,” the report stated.
“Abundant land availability and a lower regulatory burden have supported the growth of Missing Middle housing” in those locations, CMHC said.
Prairie cities set the pace
Edmonton and Calgary’s dominance in this segment is no accident. Both cities have benefited from strong interprovincial migration, robust rental demand, and policy environments that encourage mid-density development.
“Favourable policies and incentives have further facilitated this development along with broader increases in overall housing starts,” CMHC said.
Mid-density projects are often quicker to build—especially when rezoning is not required—and typically need less capital than larger developments. These types of homes also expand options for families who find single-detached houses too expensive and high-rise apartments too small.
Vancouver and Toronto struggle to keep pace
On the other hand, Vancouver and Toronto have lagged, with Vancouver’s Missing Middle starts dropping 56% from 2018 to 2024. It fell from 2,300 in 2018 to just 1,002 in 2024, before a modest rebound was projected for 2025.
“High land costs reduce the viability of smaller projects across much of the city but especially in and around the downtown core,” CMHC reported.
Toronto faces similar challenges, though both cities have recently introduced measures to improve the economics of these developments, such as waiving development charges for small projects.
Accessory suites have become increasingly common in Vancouver as homeowners look to offset rising costs, while Toronto’s recent zoning reforms have spurred a wave of residential conversions.
“Since 2024, infill conversions have quickly become the leading way to deliver Missing Middle housing in Toronto,” the report said.
Regional diversity shapes the landscape
The type and location of Missing Middle housing vary widely. Montréal’s landscape is dominated by low-rise apartments, while Ottawa leads in row homes, accounting for 61% of its Missing Middle starts.
Calgary and Edmonton, meanwhile, are seeing a shift from suburban row developments to more infill projects in established neighbourhoods.
Despite the progress, the lack of a universal definition for Missing Middle housing complicates national dialogue and policy coordination. “A shared and consistent definition would help cities learn from each other’s experiences and measure their own progress over time,” CMHC said.
As local governments adapt policies and the market responds, the Missing Middle will remain central to debates on affordability and urban growth.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
