Navigating Canada’s Housing Crisis: The Case for Larger, Livable Apartments

As Canada grapples with an escalating housing crisis, the dialogue surrounding building codes and housing design has intensified. Experts like Conrad Speckert from LGA Architectural Partners are advocating for a shift towards more efficient and livable apartment designs. While much of Canada adheres to stringent building regulations that often require two sets of exit stairs for buildings over two stories, Speckert argues that modern safety features mean mid-sized apartments can be just as secure with a single exit. This article explores the complexities of Canada’s housing landscape, the challenges of small dwellings, and emerging solutions.

The Complexity of Building Codes

In Canada, building codes dictate much of the landscape for mid-sized apartment construction. These regulations often stem from an age-old focus on fire safety; however, innovations in fire prevention, such as sprinklers and smoke-sealed doors, have led many studies to conclude that single-stairway apartments can be safely designed. In cities like Seattle, single-exit buildings have been permissible since the 1970s, prompting experts to question why Canada remains tethered to outdated rules.

One of the most significant barriers to creating more livable apartments is the dual-stairway requirement, which significantly reduces the potential for larger living spaces. As urban centers like Toronto face extreme housing shortages, experts like Mike Moffatt emphasize the pressing need for more apartment options, particularly for families.

The Case for "Missing Middle" Housing

Striking a balance between single-family homes and high-rise condominiums, the concept of "Missing Middle" housing has garnered attention for its potential to address the affordability crisis. Provinces across Canada are beginning to untangle complex zoning laws that have historically restricted apartment construction in suburban areas. However, political resistance remains, as seen when Toronto city council decided to limit multi-unit buildings to specific downtown and suburban locations.

This political tug-of-war has real-world implications; families increasingly find themselves priced out of the housing market, often forced to live far from their workplaces. "You can’t have all of the older, rich people living in Toronto, but all the nurses and personal support workers living in North Bay," Moffatt noted, encapsulating the dire need for strategic housing policies.

Why Are Canadian Apartments So Small?

In recent years, the term "apartment" in cities like Toronto and Vancouver has been synonymous with tiny living spaces, often less than 640 square feet. This stark size reduction contrasts sharply with global trends, where spacious living units—averaging 1,300 square feet—are commonplace.

The rise of investor-owned condos has played a pivotal role in this phenomenon. In Toronto, investors owned around 60% of new condos at the height of the market frenzy. This investor-driven approach often nudged developers toward creating smaller units, attractive for rental yields but insufficient for family life.

Despite a slight dip in investor demand due to rising interest rates and reduced immigration, the trend of building small apartments persists. Only 13% of rental units completed in Toronto and Hamilton in 2024 were three-bedroom apartments, according to Urbanation. Higher rents for larger apartments disincentivize developers from building family-sized homes.

A Vision for Bigger, Family-Friendly Units

Designers like Bryn Davidson envision a new approach: larger units in small multiplexes or mid-sized apartment buildings. Davidson argues for the construction of 1,200 to 1,800 square-foot apartments, ideally featuring multiple bedrooms. These units could be built in residential neighborhoods, allowing families to live closer to amenities, schools, and transit.

However, challenges continue to loom large, particularly around existing zoning laws that have historically limited the types of buildings possible in certain neighborhoods. Recent legislative changes in British Columbia and Ontario to allow multi-unit dwellings on properties previously designated for single-family homes mark crucial steps forward. They allow for a broader array of housing types that can cater to various needs.

The Impediment of Building Code Regulations

Despite strides in zoning reform, building codes remain a significant obstacle to constructing larger, family-friendly units. The dual-exit rule, in particular, has stymied the design of smaller multi-family buildings. Recently, British Columbia relaxed its building codes to permit single egress in buildings up to six stories, a positive step forward. However, national updates to building codes will take time to reflect these necessary changes.

Compounding the problem, elevators in North America are typically larger and more expensive than those in many other countries, often leading developers to avoid constructing smaller apartment complexes altogether. The financial burden imposed by these costs often drives the choice toward townhouses or high-rise construction, leaving an unmet demand for spacious, affordable apartments.

The Financial Impacts: Amenities, Permits, and Taxes

Building larger, family-friendly apartments also means grappling with financial realities, such as development charges, permits, and construction costs. Cities impose a variety of development charges to fund new infrastructure to support growing populations. In Toronto, these charges have soared by nearly 600% over the past decade, which significantly contributes to the inflated costs of new developments.

More proactive approaches, such as allowing payment of development charges upon project completion rather than upfront, could ease some financial burden on developers. This could in turn lower prices for homebuyers, making larger apartments more viable.

A Bright Future?

While the landscape for housing in Canada is fraught with challenges, the cumulative impact of recent regulatory changes presents a unique opportunity for real transformation. The government’s willingness to rethink long-standing zoning and building practices signifies a pivotal shift in how residential spaces can be developed.

Experts believe such changes could lead to a more diverse housing stock that can meet the needs of a broader segment of the population. By focusing not just on increasing the quantity of homes but also on improving their quality, Canada can begin to address its housing crisis meaningfully.

In the grand scheme, concerted efforts toward policy reform can pave the way for a future where family-friendly, spacious apartments flourish—not just as a dream, but as a realistic option for all Canadians. The stakes are high as cities work to create not just more homes, but better ones.