Canada Takes Bold Steps to Transform Housing and Combat Climate Change

For over a century, zoning ordinances rooted in segregation have dominated the landscape of urban planning, primarily facilitating the construction of single-family homes. Such policies have starved urban centers of the multifamily buildings that foster higher density living, leading to a significant housing shortage and skyrocketing prices. Additionally, they contribute to urban sprawl and an increased reliance on automobiles. However, Canada has recently decided to take a different approach in response to these pressing challenges.

Unprecedented Government Action

In May 2024, the Canadian government announced a groundbreaking policy initiative: it will provide billions of dollars in infrastructure funds to provincial governments, contingent upon the requirement that cities abandon single-family zoning laws and permit the construction of fourplexes. This unprecedented move not only aims to increase the housing supply but also intends to address climate change, marking a departure from the historical focus on single-family homes.

The Multifaceted Benefits of Fourplexes

Research consistently shows that multifamily structures like fourplexes can significantly reduce vehicle miles traveled due to their proximity to urban centers and public transit. These buildings utilize materials and energy more efficiently than single-family homes, hence lowering the overall carbon footprint of construction. Zack Subin, a housing and climate researcher at the Terner Center for Housing Innovation at UC Berkeley, notes, "Higher density tends to reduce emissions, and by a pretty significant amount."

A Model for Other Countries

If Canada’s strategy proves effective, it might inspire similar reforms in the United States and motivate cities to embrace a broader range of climate-friendly housing. Historical zoning practices, founded on segregation and exclusion, have effectively banned efficient housing forms across many urban and suburban areas. Subin emphasizes that any steps toward reform are positive, saying, “Any reform like this is moving in the right direction.”

Leading the Way: Progress in the United States

While states like Washington, Oregon, and California, along with cities such as Minneapolis and Austin, have initiated steps to amend single-family zoning laws, none have taken measures as comprehensive as Canada’s. The Canadian federal budget for 2024 allocates approximately 6 billion Canadian dollars (about $4.4 billion) to expedite new construction, emphasizing the abandonment of single-family zoning and the adoption of fourplexes.

Enforcing Compliance

To ensure adherence to these new zoning laws, the Canadian government has made it clear that provinces rejecting these measures will face consequences. For instance, when Oakville, Ontario, denied a proposal to allow fourplexes, Housing Minister Sean Fraser mandated the return of over 1 million Canadian dollars in federal housing funds. The government aims to leverage financial incentives to encourage changes at the provincial level, adjusting their strategy to influence local governments resistant to reform.

The Concept of Pro-Housing Policies

Canada’s approach embodies what experts refer to as "pro-housing policies." By offering monetary incentives to adopt progressive zoning reforms, such as eliminating parking minimums and promoting fourplex construction, the government hopes to spark a nationwide shift. This mirrors a proposal from the Biden administration aimed at distributing funds to states and cities willing to reform single-family zoning, albeit with a diluted strain of the original initiative.

Addressing the “Missing Middle”

Central to Canada’s policy is targeting the “missing middle” of housing construction. This refers to low-rise options like townhomes and fourplexes that sit between single-family homes and large apartment complexes. Historically, many areas in Canada and the U.S. have prohibited these types of developments. Allowing them could unlock the potential for more housing availability while reducing costs, especially near existing urban infrastructure.

The Associated Climate Benefits

The ramifications of permitting higher density housing extend beyond just housing availability; they also play a vital role in climate change mitigation. Higher population density typically correlates with lower emissions, as residents drive less and utilize public transit more. A study conducted in the San Francisco Bay Area found that denser neighborhoods exhibited significantly fewer vehicle miles traveled compared to less populated suburban areas.

Energy Efficiency in Construction

Fourplexes and other low-rise multifamily buildings not only require less energy due to shared insulated walls but also consume fewer materials, which further reduces construction-related emissions. A recent study suggested that building such “missing middle” housing in Ontario could cut future carbon emissions from residential buildings by as much as 46.7 percent.

Challenges and Considerations

While these reforms present promising avenues for alleviating housing shortages and addressing climate issues, experts caution that they may not be a panacea. Housing availability and types heavily depend on local market conditions and the inherent complexities of urban development. Freemark from the Urban Institute underscores that simply allowing for greater housing density does not automatically ensure that such housing will get built.

Moreover, while enhancing the availability of low-rise multifamily options is beneficial, constructing large-scale apartment buildings near public transit will likely yield even greater housing satisfaction and emissions reduction.

A Path Forward

As both Canadian and U.S. governments experiment with new housing policies and zoning reforms, there exists a valuable opportunity for shared learning. Whitzman notes, “There’s a lot of learning going on between them. When we’re talking about these issues, the differences between Canada and the U.S. are very minimal.” The future of housing policy could hinge on these multifaceted initiatives that look to address historical grievances while paving new pathways for sustainable urban living.

In conclusion, Canada’s bold endeavor to reshape its housing landscape marks a significant commitment to both combating the housing crisis and addressing climate change. The outcomes of this innovative approach could serve as a blueprint for effective housing policy reform, not just within Canada but across borders, encouraging a more sustainable and equitable future for urban living.