Canada needs both infill and outfill housing, experts say
Key Takeaways
- What happened
- Experts and industry leaders are urging Canadians to abandon the polarized debate over whether to prioritize infill or outfill housing development, arguing that both strategies are essential to meet the country's diverse demographic needs.
- Location
- Canada
- Key points
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- The housing supply crisis in Canada is widely acknowledged, but the political and public…
- Canada needs more housing.
- Canadian Urban Institute (CUI) data highlights the potential to build 4.4 million more…
- Local impact
- In the Greater Vancouver and Burnaby context, the tension between infill and outfill is particularly acute. Burnaby and Vancouver have aggressively pursued infill strategies, such as the Multi-Unit Housing Zoning Bylaw, to increase density near SkyTrain stations and major commercial corridors. For Metro Vancouver buyers, sellers, developers and investors, watch financing cost, transaction pace, supply mix and policy expectations.
- Who should watch
- ['Buyers seeking transit access and a younger demographic neighborhood should focus on infill properties within 800 meters of rail stations, as these areas command a premium and attract the educated, under-35 demographic.', 'Investors…
What Happened
Experts and industry leaders are urging Canadians to abandon the polarized debate over whether to prioritize infill or outfill housing development, arguing that both strategies are essential to meet the country's diverse demographic needs. This call for unity follows new data from the Canadian Urban Institute (CUI) highlighting the massive potential for transit-oriented infill in Canada's urban centers.
The CUI analysis reveals that while only 6% of total urban land lies within 800 meters of a rail-based transit station, 25% of the 20.2 million urban residents currently have access to such transit. Consequently, 29% of existing dwellings are located in these transit-proximity areas, which attract specific household types: residents there are 38% more likely to be under 35, 30% more likely to be university-educated, and 63% more likely to live alone.
Despite the clear appeal of transit-focused infill for smaller, younger households, experts warn that a strategy relying solely on infill cannot eliminate the need for millions of new homes for growing families. In regions where land remains relatively inexpensive and plentiful, outfill development remains a vital component of the national housing supply equation.
Why It Matters
The housing supply crisis in Canada is widely acknowledged, but the political and public discourse often stalls over the method of delivery. By framing infill and outfill as mutually exclusive, policymakers and communities risk delaying the construction of the 4.4 million additional dwellings identified by the CUI as necessary to address the shortage. Recognizing the complementary nature of these strategies allows for a more pragmatic approach to zoning, infrastructure investment, and community planning.
Understanding the demographic preferences associated with transit-oriented infill is crucial for developers and municipalities. The data shows that infill primarily serves renters and young, educated singles. However, failing to account for the needs of larger families who may require the space and affordability often found in outfill regions creates a mismatch between supply and demand. A balanced approach ensures that housing policy supports not just the urban core's density goals but also the broader demographic reality of Canadian households.
Local Vancouver / Burnaby Context
In the Greater Vancouver and Burnaby context, the tension between infill and outfill is particularly acute. Burnaby and Vancouver have aggressively pursued infill strategies, such as the Multi-Unit Housing Zoning Bylaw, to increase density near SkyTrain stations and major commercial corridors. This aligns with the CUI data showing that transit-proximity areas attract younger, educated demographics who prefer renting or buying smaller units.
However, the local market reality reflects the need for both. While infill projects in areas like Metrotown or Brentwood cater to the demographic described in the report, the affordability crisis has pushed many families toward outfill regions in the Fraser Valley or the Sunshine Coast, where land is more plentiful. The CMHC Spring 2026 Housing Supply Report indicates that housing starts and supply data fluctuate, but the fundamental constraint remains the availability of serviced land. In Burnaby, where land costs are high, infill is often the only viable path for new multi-unit construction, yet it cannot alone satisfy the demand for larger, family-sized homes that outfill regions typically provide.
Local brokerage experience and Gary Gao commentary often highlight that while infill is politically popular in established neighborhoods, it faces significant NIMBY (Not In My Backyard) resistance. Conversely, outfill development faces infrastructure challenges, such as the recent sewage issues in the Comox Valley, which remind us that expanding into new areas requires robust utility planning. The 'needless debate' is therefore a local political hurdle as much as a national policy one.
Market Impact
For the condo and rental markets in Burnaby and Vancouver, the emphasis on infill near transit supports the value of properties within the 800-meter radius of SkyTrain stations. These assets will continue to attract the demographic profile identified by the CUI: younger, educated, and likely to rent. However, for the broader housing market, ignoring outfill means ignoring the affordability needs of middle-income families. The market impact is a continued bifurcation: high-density, high-cost infill in urban cores and lower-density, more affordable outfill in surrounding regions. Investors should note that transit-proximity infill is less likely to attract large families, limiting its appeal for long-term family rentals.
Investor / Buyer Takeaway
- Buyers seeking transit access and a younger demographic neighborhood should focus on infill properties within 800 meters of rail stations, as these areas command a premium and attract the educated, under-35 demographic.
- Investors should recognize that infill primarily suits smaller households and renters; it is not a substitute for family-sized housing supply, which often requires outfill or larger infill projects.
- Sellers of outfill properties in regions with cheaper land should monitor infrastructure developments, as utility capacity (like sewage and water) can impact future development feasibility and value.
- Watch for policy shifts that may further incentivize transit-oriented development, as the CUI data supports the efficiency of building near existing rail infrastructure.
- Do not assume infill will solve the entire housing crisis; the 4.4 million dwelling target requires a mix of both infill and outfill strategies to meet diverse demographic needs.
Builder / Developer Perspective
For builders and developers, the CUI data validates the feasibility of infill projects near transit, where demand from younger, educated households is strong. However, the necessity of outfill cannot be ignored. In regions where land is inexpensive and plentiful, outfill remains a cost-effective way to deliver volume. The challenge for developers is navigating the different regulatory and infrastructure requirements for each. Infill requires dealing with existing community dynamics and complex servicing, while outfill requires significant upfront infrastructure investment. The 'needless debate' is a call for developers to advocate for both pathways depending on the local market context.
Risk Factors
- Policy paralysis: Continued debate over infill vs. outfill could delay the approval and construction of the 4.4 million needed dwellings.
- Infrastructure strain: Outfill development risks repeating past mistakes, such as the sewage pump failures in the Comox Valley, if utility capacity is not planned ahead.
- Market mismatch: Over-reliance on infill may fail to provide sufficient family-sized housing, leading to continued affordability pressures for middle-income households.
- Community resistance: Infill projects face significant NIMBY opposition, which can delay timelines and increase costs, potentially making them less viable.
- Demographic shifts: If younger, educated households continue to cluster in transit areas, outfill regions may face different economic challenges, requiring tailored policy responses.
BurnabyHouse Insight
The 'needless debate' is a polite way of saying that Canadian housing policy has been stuck in a binary trap. In Burnaby and Vancouver, we see the benefits of infill daily: vibrant, walkable neighborhoods near SkyTrain. But we also see the limits: high prices and a lack of space for families. The CUI data is a powerful tool for advocates because it quantifies the potential of infill without dismissing the reality of outfill. For local readers, the takeaway is that both strategies are necessary. Infill is the future of urban cores, but outfill is the present of affordability for many. Ignoring either creates a gap in the market that the other cannot fill.
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