Canada is at a critical juncture in its housing story. A gap between population growth and homebuilding has created a significant housing shortage, driving costs to record highs and placing affordability at the center of the national conversation. In response, a powerful solution is not just gaining ground but is actively reshaping our cities: increasing housing density.

This fundamental shift towards multi-unit homes is supported by a broad consensus, from Canada's national housing agency (CMHC) to provincial and municipal governments and the construction industry itself. A closer look at the data reveals this isn't a future concept, it's the current reality.

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The Big Shift in Homebuilding

Data on new housing construction, or "housing starts," paints an undeniable picture. For decades, the single-detached house was the symbol of Canadian homeownership. However, since the early 2000s, and accelerating dramatically after the 2008/09 Global Financial Crisis, the focus has pivoted to "multiples", a category that includes everything from semi-detached and row homes to low-rise and high-rise apartment buildings.

This trend has reached an all-time high. In 2024, multi-unit homes accounted for a record 77.8% of all housing starts. As of the latest 2025 data, this trend has only intensified, with nearly four out of every five new homes started in Canada being part of a multi-unit development. This pattern is consistent across the country, with multiples forming the clear majority of new builds in nine out of ten provinces.

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The Driving Forces Behind Densification

Several powerful factors are fueling this nationwide move towards denser housing.

• Urban Demand and Land Scarcity: Canada's major cities are magnets for economic opportunity, attracting a growing population. As these urban centers expand, available land becomes both scarce and prohibitively expensive. Building "up" instead of "out" allows developers to create more homes on smaller parcels of land, making it a more economically viable way to increase the housing supply where it's needed most.
• Evolving Demographics: Canadian society is changing. Household sizes are shrinking, with a growing number of individuals living alone or as couples. Smaller, more efficient living spaces like modern condos and apartments are often a better fit for these contemporary lifestyles than larger, single-family homes.
• Government Policies and Incentives: Recognizing the urgency of the housing crisis, governments at all levels are actively promoting densification. This includes significant zoning reforms (upzoning) to permit multi-unit projects in areas previously reserved for single-family homes, streamlining approval processes, and offering financial incentives to developers who build denser housing. These policies often align with environmental goals to protect farmland and natural spaces by concentrating development within existing urban footprints.

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From New Starts to a New Reality

While the surge in multi-unit construction is a monumental shift, it's crucial to understand its long-term impact. New construction represents a small fraction of the country's total housing inventory. For instance, the roughly 240,000 new homes started in 2023 represent only about 1.4% of the more than 17 million existing homes in Canada. As of the last census, single-detached homes still comprise over half of the nation's housing stock.

This reality should help frame conversations around densification. While Canadians widely support the idea of building more homes, concerns about increased traffic, noise, and loss of neighbourhood character are common. These concerns are valid and must be addressed with thoughtful policy, including high-quality building design, investment in public transit and local infrastructure, and robust bylaw enforcement.

Getting the "politics of density" right is the key to unlocking a more affordable future. In an era of shrinking household sizes, neighbourhoods that resist densification risk a gradual decline in population, which can threaten the viability of local schools, businesses, and community services.

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New Housing Landscape

Understanding these powerful market trends is crucial for anyone looking to buy, sell, or invest in Canadian real estate. The landscape is evolving rapidly, and making informed decisions has never been more important.

Whether you're looking to buy your first condo, invest in a multi-family property, or strategically sell your single-detached home in this dynamic market, the experienced professionals at Coldwell Banker Horizon Realty are your trusted guides. Our team possesses deep, localized knowledge of these trends and can provide the expert advice you need to achieve your real estate goals. Contact Coldwell Banker Horizon Realty today to navigate the future of Canadian real estate with confidence.