Building the Missing Middle: Creating More Paths to Homeownership

We often talk about Canada's housing shortage in terms of numbers, but behind every housing statistic is a family trying to figure out what comes next. They’ve outgrown their apartment, a detached home is out of reach, and the home that should bridge the gap often isn’t there. That’s the missing middle. 

The missing middle is not one type of home. It's a broad range of gentle- to medium-density housing, including duplexes, multiplexes, row homes, stacked townhouses, low-rise apartments, family-sized apartments and accessory suites. These are the homes that can provide more attainable options for Canadians at different stages of life, whether they're renting, buying their first home, raising a family or looking to downsize. 

For Canadians living in larger homes, hoping to downsize without leaving the neighbourhood they’ve called home, this lack of housing supply can force them into unnecessary sacrifices – choosing between staying in a house that’s become too demanding or having to leave the area they call home. Facing that choice, many opt to stay in their homes. It means there aren’t enough family-sized homes entering the resale market, creating a bottleneck that affects buyers and sellers at every stage of the homeownership journey. 

The conversation around Canada's housing shortage is focused on building more homes. But it’s just as important to build the right homes. 

Canada needs to build millions of more homes in the next decade to restore housing affordability. Meeting this challenge means thinking beyond housing targets. Canadians aren’t looking to buy the next housing unit; they’re looking for their next home. That means carefully considering what we build, where and how we build it. It means building the missing middle, giving buyers and sellers the options they are looking for. 

Canadians recognize this challenge as well. 

According to recent Abacus research, 76% of Canadians believe not enough affordable homes are being built, and 61% believe that the homes being built today don’t meet the needs of Canadian households – particularly when it comes to affordability, size, layout and family suitability. 

That’s why the Canadian Real Estate Association (CREA) is advocating for government to put its existing tools to work. Adding a fourth Mortgage Loan Insurance (MLI) Select category focused on missing middle supply would incentivize developers to build three-to-eight unit buildings more broadly. It’s a targeted policy solution that meets builders where they already are while encouraging more of the homes Canadians need: lower-rise, family-sized homes with the bedrooms and space today’s households require. 

It’s also why we’re calling on all levels of government to work together on a renewed National Housing Strategy (NHS) 2.0 – one that reflects the local realities of Canada’s housing markets, and addresses the full housing continuum, from ending homelessness to rebuilding the pathway to homeownership. The strategy's core work is anchored in homelessness reduction, affordable rentals, and community/co-op housing – that's not up for debate. But a housing system only functions when every part is working, which is why attainable ownership has to be recognized as a pillar within NHS 2.0, not a competing priority. Programs like MLI Select aren’t just financing tools – they’re levers that can help drive the zoning reform and typology change the continuum needs. Regardless of tenure, the homes we build must be the same homes: family-sized, three-plus bedrooms, and built where people want to live. 

The solutions to Canada’s housing crisis aren’t found in a single jurisdiction or over one election cycle, and the housing continuum isn’t just about income or tenure – it’s about ensuring Canadians can find a home that meets their needs and fits their budget, at every stage of life. We need years, even decades, of focused cooperation and concerted efforts to build the communities and the homes that all Canadians deserve. 

A home is never just a building. It’s where a child grows up, where a family gathers around the table, where memories are made. The homes we build today will shape tomorrow’s communities. Addressing the missing middle isn’t just about solving today’s housing market – it’s about giving generations of Canadians a place to call home. 

Explore CREA’s latest research, recommendations and housing market insights, and learn how we’re advocating for policies that help more Canadians find a home that meets their needs.