Trends in Affordable Housing: How “Missing Middle” Can Help Solve Toronto’s Crisis
Looking for a Home in Toronto? You’re Not Alone
If house hunting in Toronto feels more intense than ever, you’re not imagining things. With the city experiencing the fastest population growth in North America, new housing just can’t keep up. According to recent data, Toronto needs more than 50,000 new homes each year, but only about 40,000 get built—leaving an annual gap that keeps pushing prices up and options down.
In 2025, the average resale home price stayed around $1 million, and even renting a one-bedroom costs $2,126/month. These aren’t just statistics—they’re real barriers for families, students, new Canadians, and essential workers who want to live and thrive in this amazing city.
Why Is Housing So Unaffordable Right Now?
Supply is Still Too Low: New development approvals have dropped by more than 50% since 2021. Complex rules, high fees, and long approval waits mean fewer homes are being built—especially family-sized ones.
Rents Remain High: Even though average rents dropped a bit in 2025, a typical two-bedroom still costs nearly $3,000. For most families, that’s 40% or more of their income.
Population Keeps Growing: Toronto’s rapid growth means more people try to squeeze into too few homes, making things tough for everyone—especially young adults, families, and essential workers.
The “Missing Middle”—A Real Solution, Hiding in Plain Sight
What is missing? Affordable, flexible “middle” homes—think multiplexes, townhouses, laneway homes, and low-rise apartments that fit between high-rise towers and single-family houses. These “missing middle” homes:
Provide house-like privacy (think private entrances, backyard space)
Aren’t as pricey as detached homes or as dense as condos
Work for families, downsizers, newcomers, and multi-generational households
Let people live in walkable, transit-friendly neighborhoods, close to work, school, and shops
Surprisingly, in Toronto, only a quarter of all housing is “missing middle”—in places like Montreal, it’s more than 70%! That’s a huge opportunity for change.
How Missing Middle Makes Housing More Affordable
Lower Cost Per Home: Multiplexes split land and build costs, so units are cheaper to buy or rent than standalone houses.
Faster to Build: Townhomes, laneway suites, and basement apartments can pop up a lot quicker than huge towers, offering relief now—not ten years down the road.
Keeps Neighborhoods Vibrant: Adding new homes to existing communities helps keep schools open, supports local businesses, and keeps neighborhoods from hollowing out as people leave for cheaper suburbs.
What’s Standing in the Way?
Old-Fashioned Zoning: Still, over 70% of Toronto’s residential land is reserved for single-family houses only. That makes it illegal or really expensive to build small multiplexes or townhomes almost everywhere.
Red Tape and High Fees: Lengthy approvals (averaging 20 months!) and fees adding $40,000+ per new home slow things down. Developers often avoid building affordable options because it’s just not profitable.
Resistance to Change: Some residents worry new multiplexes will “change the feel” of their street—but gentle density can blend in, as seen in Vancouver and Montreal, keeping the neighborhood’s charm.
New Policy & Growing Momentum
Toronto is starting to move:
Garden suites, laneway housing, and multiplexes are now allowed in more neighborhoods
City and provincial plans are targeting zoning reform, digital approvals, and lower fees for affordable building
The Federal National Housing Strategy includes $55B for affordable projects—more funding means more options on the ground
The message is clear: governments know missing middle homes matter, and change is coming.
The Social Impact—Why It Matters
More missing middle housing means:
Young adults, families, and seniors can stay in their communities
Essential workers can afford to live near their jobs
Neighborhoods stay lively, safe, and connected
Less urban sprawl, more green space protected
It’s about more than buildings—it’s about a city where everyone can belong.
What Can House-Hunters and Community Members Do?
Support policy changes that make it easier to build missing middle homes in your area
Look for opportunities to rent or buy in new multiplex and townhouse projects
Join community conversations about welcoming new neighbors and housing options—everyone benefits from a healthy, diverse housing mix!
Conclusion: It’s Time for a Middle Ground
Affordable homes in Toronto aren't just a dream—they’re possible if we invest in the types of housing that work for real people: multiplexes, and more. Missing middle housing is the best way to bridge the gap, support local communities, and make sure Toronto stays a city everyone can call home.
At Middle House, our focus extends beyond building homes—it’s about creating spaces that blend naturally into the existing character of each street and neighborhood. Every development is designed with sensitivity to its surroundings, ensuring that each project enhances the community’s charm rather than disrupts it. By prioritizing thoughtful design, architectural balance, and neighborhood integration, Middle House aims to ensure that every completed multiplex serves as a positive reference point—an addition that both residents and neighbors can take pride in.