Medium-Density Housing: A Practical Solution to Canada’s Housing Crisis?

What Harvard research and Canada’s Liberal housing strategy are finally getting right.

Canada stands at a turning point. As housing prices soar and supply remains constrained, millions of Canadians—young families, downsizing seniors, immigrants—are struggling to find homes that are both suitable and affordable. While policymakers debate interest rates and subsidies, one solution is quietly gaining traction: Medium-Density Housing, often referred to as Missing Middle Housing.

This housing typology—long neglected in North American urban development—is now supported by both cutting-edge academic research and ambitious federal housing policy.

What Is Medium-Density Housing?

Medium-density or “missing middle” housing includes a range of building types between single-family homes and high-rise apartments:

• Duplexes, triplexes, fourplexes
• Rowhouses, townhomes
• Courtyard apartments and low-rise walk-ups
• Accessory Dwelling Units (ADUs)

These buildings are typically 2–4 stories, fit comfortably within residential neighborhoods, and support walkable, transit-oriented development. They offer a scalable path toward increased housing supply without sacrificing community character.

Harvard’s Findings: A Global Perspective

In April 2025, the Joint Center for Housing Studies at Harvard University released a report titled Unlocking the Missing Middle. It presents compelling evidence that medium-density housing is:

• More responsive to modern household structures (e.g. more single and two-person homes)
• Better suited to aging populations wanting to downsize but remain in their neighborhoods
• Capable of delivering “affordability by design” through efficient land use and simpler construction

Harvard’s study emphasizes that this is not a niche solution—it is a globally relevant, scalable answer to growing urban pressures.

Canada’s Liberal Plan: From Theory to Action

Echoing these insights, the Liberal Party of Canada, under Mark Carney’s leadership, has unveiled one of the most ambitious federal housing strategies since WWII. Among its key pillars:

• Build Canada Homes (BCH): A new public agency tasked with building and financing affordable homes at scale—including on federal land.
• $25B in financing for prefabricated and modular construction, aimed at reducing build times and costs.
• Zoning reform acceleration, including standardized pre-approved designs and reduced permitting red tape for multi-unit development.
• Tax incentives for converting existing buildings into housing and reintroducing the Multiple Unit Rental Building (MURB) allowance.

This signals a national shift toward not just “more” housing—but the right kind of housing.

Why This Matters for Canada

Demographics are shifting: Just like in the U.S., Canada’s household sizes are shrinking. Most homes today are occupied by 1–2 people, yet our built environment still favors large detached houses.

Land is scarce: Building taller isn’t always feasible or desirable. Medium-density offers a gentler way to add supply, especially in walkable, inner-suburban neighborhoods.

Seniors are stuck in over-sized homes: With limited downsizing options, many older Canadians remain in homes that no longer fit their needs—while younger families struggle to find space.

The market wants walkability: According to NAR surveys, over half of North Americans prefer walkable communities. Medium-density homes support that—without overbuilding.

From “Illegal” to Essential

Harvard’s report notes a painful irony: in cities like Somerville, MA, the very housing types people want—triple-deckers, duplexes—are now “illegal to build” under modern zoning codes. The same is true across many Canadian municipalities.

If we are to solve the affordability crisis, we need more than supply—we need the right kind of supply, built in the right places, with zoning that reflects real-life needs.

Looking Ahead

Imagine a Canadian city where a triplex sits on the same street as a detached home and a corner coffee shop. Where older residents can stay in their neighborhood, and younger families can enter the market. Where housing doesn’t require trade-offs between affordability and livability.

This is not radical urbanism—it’s just common sense, backed by global data and national policy.

Medium-density housing may not be the flashiest solution. But it is one of the smartest, most realistic, and most immediately actionable tools we have to create a more inclusive housing future.

If you’re a policymaker, planner, developer, or just someone who believes housing should serve people—not just capital markets—this is your moment to pay attention.

Let’s stop overlooking the middle—and start building it.