Douglas Schwartz

Highlights Missing Middle is a broad term for gentle- to-medium-density housing types such as accessory suites, multiplexes, row homes, stacked townhouses and low-rise apartments. These housing types are often underrepresented in new supply. Missing Middle housing starts across Canadas 6 major cities (Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montral) increased by an average of 5% per year between 2018 and 2023. This was followed by an exceptional 44% surge between 2023 and 2024. Edmonton and Calgary lead the way in Missing Middle housing starts, supported by a lower regulatory burden, abundant land availability and favourable policy environments. Meanwhile, Toronto and Vancouver lag where denser forms of housing have historically been more feasible. The prevalence, type and location of new Missing Middle housing construction projects vary widely across cities. Factors such as land costs, developer expertise and evolving local policies play a key role. This report shares insights into the creation of Missing Middle housing options since 2018 in Canadas 6 major cities: Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montral. Missing Middle housing is important as it provides a layer of supply that can be delivered within existing neighbourhoods. It can often be faster to develop especially when rezoning isnt needed and requires less capital investment than larger projects. It broadens housing choices for families who cant afford single-detached homes and find high-rise apartments do not offer enough space for their needs. Stakeholders, particularly policymakers at the municipal government level, working to encourage this kind of development, can benefit from understanding its prevalence in their communities. They can also gain insights into what built form it takes, its location and the reasons behind regional differences. https://www.cmhc-schl.gc.ca/observer/2025/how-common-missing-middle-housing-development-canada

The Canadian economy is adjusting to steep US tariffs on several industries and coping with elevated uncertainty. Tariffs have led to a fall in the demand for Canadian goods, affecting the broader economy. The reconfiguration of global trade and domestic production is also leading to higher costs. Total inflation has been around 2%, while underlying inflation has continued to be about 2%. With US tariffs and limited Canadian counter-tariffs in place, the effects of the trade conflict on growth and inflation in Canada are becoming clearer. Exports to the United States have fallen, and business investment has declined. The structural shift in the Canada-US trade relationship has put the economy on a lower path. At the same time, the reconfiguration of global trade and the restructuring of the Canadian economy are adding costs and putting upward pressure on inflation. Considerable uncertainty remains around US tariffs and how changes to global trade relationships will affect economic growth and consumer prices in Canada. This uncertainty includes the review of the Canada-United States-Mexico Agreement. How other major structural changessuch as shifting demographics and the adoption of artificial intelligencewill affect the Canadian economy is also unclear. The effects of these developments on output and inflation will play out over many years. Monetary policy cannot offset the long-term implications of US tariffs or other sources of structural change. The primary focus of monetary policy is to maintain low and stable inflation. https://www.bankofcanada.ca/publications/mpr/mpr-2025-10-29/overview/