Housing Shortage and the Rise of Long-Term Renting

Canada’s housing market is feeling the strain, and it’s not just because prices are high. The real problem runs deeper—a shortage of homes that isn’t going away. People like to think affordability will bounce back, but that’s wishful thinking. This isn’t a short-term dip. It’s a structural issue, and it’s changing how homes are built, bought, and even how people live. Investors have noticed, and they’re shifting their strategies too.

So what’s behind this change? A supply crunch that feels permanent, more Canadians renting for the long haul, and a stronger push for denser communities. Add in higher interest rates, steady immigration, and new policies, and you’ve got a housing market that looks nothing like it did ten years ago.

Canada’s Housing Shortage: Why It’s More Than a Number

When people say we don’t have enough homes, it sounds simple. Build more houses, problem solved. But in reality, it’s not that easy. We’re behind by hundreds of thousands of units. Some estimates say Canada needs millions of new homes by 2035 just to restore affordability to where it was in the early 2000s. That’s not happening anytime soon.

Why? It’s a mix of issues. Construction costs have gone up—materials, labour, everything. There aren’t enough skilled workers to build at the pace we need. Add in slow municipal approvals and zoning rules that make density difficult, and you’ve got a system that just can’t keep up.

Even in 2025, we’re still seeing projects delayed or cancelled because financing is more complex to secure with high interest rates. That means fewer homes coming to the market, while immigration remains strong and demand doesn’t let up.

The Shift Toward Renting

More people are renting—and not just for a year or two. Renting has turned into a long-term plan. You see families staying in rentals for stability, professionals who would’ve bought a condo ten years ago now signing leases, even retirees choosing to rent because it gives them freedom without the stress of upkeep.

Why Multi-Residential Investments Are in Demand

When renting becomes the norm, investors notice. More demand for rentals means buildings with multiple units—like apartments, purpose-built rentals, and even mixed-use developments—suddenly make a lot of sense.

Why? Because they offer consistent income and are far simpler to manage than having single houses scattered all over the place. Big investors figured this out a while ago and jumped in, but now even more minor players are moving into this space. The demand is there, and it’s not going anywhere.

In places like Oakville, the shift is clear. New projects aren’t just about single-family homes anymore. You’re seeing more mid-rise buildings near transit, more rental apartments in established neighbourhoods, and even condos designed for long-term renting.

Urban Densification: Not Just a Buzzword

If land were unlimited, we could keep building outward. But it’s not. Cities like Oakville can’t just sprawl endlessly without losing what makes them attractive. That’s why densification is key. An urban detached home offers more space and privacy compared to townhouses or condos, making it a preferred choice for families in growing cities.

It’s about using existing land better—more homes on the same footprint. That could mean mid-rise buildings going up on streets that were once only single-family homes, or adding basement units and garden suites where the rules allow. It’s not everyone’s favourite change, but it’s hard to avoid.

For Oakville, this ties into the push for transit-oriented development. The GO stations, new bus rapid transit plans, and walkable communities are driving where growth happens. If you’re an investor, these are the places to watch because density follows infrastructure.

What It Means for Long-Term Strategies

The housing market isn’t going back to the old normal. So, what does that mean if you’re planning ahead?

• Purpose-built rentals will dominate: They’re not a trend—they’re the answer to long-term rental demand.
  

• Zoning changes are coming: Cities will allow more density in low-rise areas. This is already happening in Ontario with gentle density rules.
  

• Public-private partnerships will grow: Municipalities can’t solve the housing crisis alone, so private developers will be key players.
  

• Supply focus over demand restrictions: Governments are realising that cooling demand with taxes isn’t fixing affordability. The real solution is building more.

What’s Next? Predictions for the Next 10 Years

Expect more mid-rise apartments and rental buildings, especially near transit. Expect more flexible housing options like secondary suites and laneway homes. And expect investors to keep focusing on rental assets because the demand is only getting stronger.

For Oakville, the growth will concentrate around areas like Uptown Core and near the GO Transit lines. These are the hubs that support densification without overwhelming the existing character of neighbourhoods.

Final Word

Canada’s housing crisis isn’t just a challenge—it’s reshaping the entire real estate playbook. The old model of detached homes for everyone is fading. The future? Denser cities, more rental housing, and strategies built for long-term sustainability.

For communities like Preserve Oakville, the question isn’t whether change is coming. It’s how to guide that change in a way that keeps the community livable while making room for the people who want to be here. That balance is the real challenge—and the real opportunity—for the years ahead.

FAQs

Q: What’s the big trend in the housing market right now?

Renting is becoming long-term for many Canadians, and more multi-unit buildings are being built instead of just single homes.

Q: What is the trend in Canada's housing market?

More people are renting for good. And we’re seeing more apartments, rentals, and higher-density projects instead of just single houses.

Q: Is Canada’s housing crisis getting better?

No. We’re still not building fast enough, and costs are high.