Mandy Dupuis

Housing supply has struggled to keep pace with demand across Canada. In response, many cities are introducing zoning changes to support small-scale infill, speed up approvals and encourage more housing. This CMHC analysis finds that small-scale infill is becoming a more important source of housing supply. How much it adds will depend on zoning changes and financial viability.

Key Findings

• Small-scale infill is increasing as a share of housing starts: Small-scale infill is now estimated to account for 1 out of every 10 housing starts in Canada in 2025. While most new housing is still built through larger developments, small-scale infill is playing a growing role.
• Zoning changes can produce upward shifts in supply: Vancouver, Edmonton and Toronto have eased zoning rules at scale. Between 2023 and 2025, the share of new housing coming from small-scale infill in these cities rose from 4.7% to 16.1%. While many factors shape housing construction, this increase suggests zoning reforms have contributed.
• Broader market and development conditions still shape infill growth: Broader market and development conditions will still shape the growth of small-scale infill. Fees, approval timelines, building rules and financing all affect whether projects can move forward.

https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-research/research-reports/accelerate-supply/small-scale-infill-big-impact-how-adds-housing-supply-canada