Mike Truan

Canada can look to international examples where consolidating and scaling the housing system have helped sustain housing supply and affordability. According to a 2016 McKinsey report, the construction industry remains one of the least digitized sectors. Out of 22 industries reviewed, construction ranked second to last just ahead ofhunting and agriculture. Nearly a decade later, little progress has been made in how we build homes. Canadas housing sector feels stuck in an everlasting hunting-gathering era, resisting modernization. A large part of the solution to digitize our housing industry lies in scaling up to generate sufficient financial, human and technological resources to innovate. Canada can learn from the Netherlands, which has achieved scale in the housing sector, including with not-for-profit affordable housing providers. In 2024, Canada had 40,349 businesses that employed workers in the residential construction industry. Of these, only 6 businesses had more than 500 employees. The majority (69.5%) were micro businesses with just 1 to 4 employees. The same trend applies to the real estate lease management industry. While specific data for residential leasing is not available through the Canadian Industry Statistics, broader data for the real estate leasing and management sector tell a clear story: Of the 30,099 businesses that employ workers, 81.4% had less than 5 employees. By comparison, 59.2% of businesses across the entire economy fall into the micro-business category. https://www.cmhc-schl.gc.ca/observer/2025/unlocking-housing-supply-why-scale-really-matters

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