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Mid-Sized Canadian Cities Embrace Compact Growth Solutions

Canada’s mid-sized cities, defined as those with populations between 50,000 and 500,000, are shifting towards more compact urban growth models. Traditionally characterized by low-density layouts and car-centric designs, these cities are now facing pressing challenges. Issues such as climate change, a housing affordability crisis, and significant infrastructure deficits are prompting local governments to rethink their urban planning strategies.

In response to these challenges, municipalities are adopting growth management strategies that prioritize density over urban sprawl. A central aspect of this transformation is **intensification**, which encourages the development of new housing within existing and established neighborhoods rather than expanding outward. City centers play a crucial role in these strategies, as they often contain vacant or underutilized land. By attracting more residents to downtown areas, cities can support revitalization efforts while simultaneously reducing the trend of urban sprawl.

Despite ambitious policies aimed at promoting intensification, many cities struggle with their implementation. For instance, **Regina** set an ambitious target in 2013, aiming for **30 percent** of new housing to be built within established neighborhoods. However, from **2014 to 2021**, the city failed to meet this goal as most new developments occurred at the urban fringe, highlighting a phenomenon referred to as the **”say-do gap,”** where planning intentions do not align with actual outcomes. This gap presents significant challenges as cities strive to transition from low-density suburbs to higher-density urban environments.

While Canada has historically leaned towards suburban development, recent trends show a glimmer of hope. Between **2016 and 2021**, the downtown populations in several mid-sized Canadian cities increased by an impressive **11 percent**, surpassing the previous five-year growth rate of **4.6 percent**. Among the cities experiencing notable growth is **Halifax**, which recorded a **25 percent** increase, making it the fastest-growing downtown in Canada. **Kelowna** closely followed with a **23 percent** rise in its downtown residential population.

This growth can be largely attributed to enhanced downtown livability, characterized by the availability of amenities and services that cater to residents. Many urban centers have evolved to accommodate daytime office workers, often neglecting the needs of those who live there. In contrast, **Kelowna** has successfully created a more welcoming environment for residents. Its downtown features an array of restaurants, cafes, medical offices, fitness studios, and even a full-service grocery store, which is a rarity in mid-sized cities where food deserts are common.

Cultural and civic amenities, such as libraries, city halls, museums, galleries, and entertainment venues, contribute to the vibrant atmosphere of Kelowna’s downtown. The city’s proximity to **Okanagan Lake** also enhances its appeal, offering residents access to recreational opportunities. The combination of these amenities significantly boosts the attractiveness of urban living, allowing Kelowna to serve as a model for other cities seeking to transform their downtown areas into thriving neighborhoods.

Cities looking to replicate Kelowna’s success must consider the broader regulatory landscape. While many developers express support for intensification concepts, they often gravitate towards low-density suburban developments due to their more predictable returns and streamlined approval processes. The complexity and risk associated with mixed-use downtown projects can deter investment. Developers in mid-sized cities are advocating for clearer regulations, faster approvals, and financial incentives to facilitate denser developments in strategic locations.

In March **2023**, the federal government introduced the **Housing Accelerator Fund**, allocating millions to municipalities to stimulate housing construction. In return, municipalities are encouraged to reform zoning regulations, introduce fiscal incentives, and expedite approval processes. In **British Columbia**, new legislation permits multiple housing units on lots that previously allowed only detached or semi-detached homes, while also removing the requirement for site-specific public hearings.

These regulatory reforms aim to streamline development processes, although challenges remain. Resistance from residents and local councillors, often rooted in concerns over increased noise, traffic, and potential declines in property values, can complicate efforts to promote denser developments.

Despite these hurdles, the recent surge in development activity and downtown population growth in cities like **Halifax** and **Kelowna** marks significant progress in the evolution of mid-sized Canadian cities. This shift signals a departure from the traditional narrative of low-density urban sprawl, offering a cautiously optimistic outlook for a future where these cities embrace denser, more vibrant, and livable downtown environments.

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