Zoocasa
Sold Prices
Map
Market Insights
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Zoocasa
  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
Home Real Estate News

Where Has All the Low-Rise Gone? Understanding Ontario’s Missing Middle Market

Penelope Graham by Penelope Graham
May 25, 2017
in Real Estate News
Reading Time: 3 mins read
Share2
Tweet
Share1
3 Shares

That there’s not enough supply to go around has long been a culprit behind unsustainable real estate price growth in the Golden Horseshoe. However, a new report out this week indicates the province doesn’t just need more housing – it needs the right kind of housing.

It finds the GH – and especially the Greater Toronto Area – is suffering from the “missing middle” or a lack of “gentle density” home types – think townhouses, row houses, and courtyard apartments. These traditionally bridge the gap between the luxury detached and high-rise segments, offering more space than a typical condo but at a friendlier price point than a stand-alone single-family home.

The Missing Middle Market: A Space Imbalance

A missing middle means the majority of people in the province are either over or under housed, says the report, which was compiled by the Canadian Centre for Economic Analysis. Titled “Understanding Ontario’s Housing Affordability Challenge: A Big Data Evolution”, it finds there are five million empty bedrooms in the province, while one in eight Ontarians have too few to suit their needs.

A full 2.2 million of those bedrooms are within the City of Toronto, where half of all residents have too many compared to the 20 per cent considered “shelter-poor”. According to the report, only 350,000 bedrooms are needed to close the city’s gap.

CEO Paul Smetanin says it’s a clear imbalance between haves and have-nots, yet not widely realized by the public. “If this was happening to our food chain or water supply, we would have a visceral reaction,” he stated. “But because it’s happening in a very slow-burning housing market, it’s like heating up the frog very slowly in the pan – it doesn’t notice until it’s too late.”

But it’s not as though those with too many rooms can, or are willing to, return them to rental stock – more gentle density must be built to meet Ontarians’ needs argues Smetanin. “You’ve got the missing middle – townhouses, triplexes, duplexes… When you have a look at what’s been produced, that’s always been squeezed for preference of single-detached or mid- to high-rise,” he says.

The report suggests $150 billion will need to be spent over the next decade to accommodate Toronto’s housing needs, and that the majority should be purpose-built rental to improve affordability; total rental stock has decreased 30 per cent in the GTHA since 1990, with new condo builds outnumbering them 10 to one.

Related Read: Could Laneway Housing Be the Answer to Toronto’s Hot Housing Market?

The Hurdles Facing Gentle Density

Toronto’s market suffers from a perfect storm of steep land prices and highly restrictive zoning.  Similar to the “green belt” that limits outward development in the province’s agricultural lands, much of the city is cinched by the so-called “yellow belt” – large swaths of the city designated only for residential detached homes. New homes built within these zones must be detached, cannot exceed 10 metres in height, and can only be for residential use.

Gentle density also isn’t particularly profitable; not only does it require larger quantities of high-priced land, but it doesn’t offer developers as much opportunity to recoup their costs. Why build a few units at ground level when thousands can be built vertically, within the same footprint?

It’s becoming more of an emerging issue even in ‘burbs of the 905, traditionally the territory for detached homes with spacious lots. According to a report by the National Post’s Garry Marr, condos are trumping ground-oriented housing as far as Hamilton.

“Hamilton didn’t even have a condo market eight years ago, you couldn’t recover your costs,” stated local builder Jeff Paikin to Marr. “Now there are a few projects that are planned or are being built. It’s even hard to get the land for townhomes. Detached homes? Forget it.”

Previous Post

Should You Rent or Buy Your Home? 4 Things to Consider

Next Post

Celebrity Homes of the Week: Chris Rock, The Weeknd, Trent Reznor, Ryan Seacrest, Cyndi Lauper

Penelope Graham

Penelope Graham

Penelope Graham is the Managing Editor at Zoocasa, and has over a decade of experience covering real estate, mortgage, and personal finance topics. Her commentary on the housing market is frequently featured on both national and local media outlets including BNN Bloomberg, CBC, The Toronto Star, National Post, and The Huffington Post. When not keeping an eye on Toronto's hot housing market, she can be found brunching in one of the city's many vibrant neighbourhoods, travelling abroad, or in the dance studio.

Related Posts

Scenic view of Calgary
Canada

February Home Sales See Steepest Monthly Decline in Nearly Two Years: CREA

March 17, 2025
A couple talks about finances with a real estate agent.
Canada

Tariffs Return: How the Real Estate Market Reacted the Last Time US Tariffs Were On the Table

March 6, 2025
Market Insights

How AI is Changing Real Estate in 2025

January 21, 2025

Blog Search

No Result
View All Result

Newsletter Sign-up

Join a community of 130,000+ subscribers. Don't miss important real estate news, market data, and buying and selling tips.

Recent Articles

brunch table with different entrees

You Can’t Eat Your Way Out of the Housing Crisis

June 23, 2025

10 Cheapest Homes For Sale in Florida: Where to Find Budget-Friendly Options in the Sunshine State

June 22, 2025
Attendees relax on the grass at a vibrant music festival, engaging with friends and enjoying the lively atmosphere.

7 Summer Festivals That Might Just Help You Choose Your Next Canadian City

June 21, 2025
Interior view of a bathroom with a shower, sink, and toilet, showcasing a clean and modern design.

Everything Shower Spaces: The Wellness Upgrade Gen Z Buyers Want Now

June 20, 2025

Featured Listings

5 Canadian Cottage Regions That Make the Perfect U.S. Buyer Getaway 

June 15, 2025

From Skyline Views to Private Escapes: 5 Luxe Calgary Homes for Sale

June 10, 2025

What it Means When a Home is Listed for $1

June 7, 2025

6 Can’t-Miss Victorian Homes for Sale in San Francisco Right Now

June 2, 2025
first-time home buyer programs and rebates

Social Media

250 The Esplanade Suite 408 Toronto, ON M5A 4J5

Stay Connected

  • Blog Home
  • For Buyers
  • For Sellers
  • Real Estate News
  • Mortgage News in Canada
  • Free Guides (PDF)
  • Real Estate Infographics
No Result
View All Result

Zoocasa © 2007–2022. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.