Mid-Size Canadian Cities Shift Toward Higher-Density Housing

Across Canada, mid-size cities are increasingly being reshaped by a shift away from outward suburban expansion and toward denser, multi-unit housing. Instead of new neighbourhoods spreading further into greenfield land, development is now concentrating within existing urban areas. Rising land prices, affordability pressures, population growth, and policy changes have all contributed to this shift. The result is that cities from Halifax to Kelowna are beginning to “grow up” rather than “grow out,” with apartments, townhouses, and other multi-unit buildings becoming a dominant form of new construction.

This change is particularly visible in long-term construction trends. In several mid-size cities, multi-unit housing now accounts for the vast majority of new builds, replacing the traditional focus on single-family homes. In places like Victoria, Abbotsford, and Kitchener-Waterloo, roughly nine out of every ten new homes are now part of denser developments. Cities such as Nanaimo, London, and Kelowna have seen especially dramatic shifts over the past 15 years, moving from predominantly low-density construction to high-density-driven development patterns in a relatively short time.

Despite the surge in construction, increased density has not automatically translated into improved affordability. In Halifax, for example, the expansion of apartment building has not resolved housing pressures, as many newly built units are priced at market rates that remain out of reach for a large share of residents. Developers tend to prioritize projects that are financially viable under current market conditions, which often means building higher-end rentals or condos rather than deeply affordable housing. As a result, the type of housing being added does not always match the needs of lower-income renters, even as total supply increases.

Financial feasibility is a central factor driving this trend toward density. In mid-size cities, land is still relatively cheaper than in major metropolitan areas, but rents are high enough that developers can make projects work only by increasing unit counts on each site. This has led to taller buildings and more intensive land use, including major developments such as high-rise towers in growing urban centres. However, this pressure to maximize returns can also introduce challenges, including community opposition, infrastructure strain, and concerns about construction impacts on surrounding neighbourhoods.