Young families are moving out of cities like Toronto due to a lack of affordable multi-bedroom homes.
New research from economist Mike Moffatt and the Missing Middle Housing Initiative shows that areas with more owner-occupied three-bedroom homes also saw an increase in the number of children under five. But in places where those homes were converted into rentals, the number of young children dropped.
The reason is simple: families want to own, not rent. They want stability, space, and a long-term future. When that path to homeownership is blocked – whether by a lack of supply, sky-high prices, or investor activity – they look elsewhere, often outside of the city.
The report offers a clear prescription: “In order to attract and retain families with young children, communities need to allow for the construction of homes, for ownership, with three or more bedrooms.”
That’s not to say there’s no demand for three-bedroom rentals. As we’ve noted in our monthly housing market health check, rents for three-bedroom units have been steadily climbing both month over month and year over year.
But that growth is largely driven by adult roommates splitting rent, not parents with toddlers.
More shared living headlines
Little recourse for parents denied rentals because of kids, says couple – CBC
Incentive city: how Toronto landlords are filling units amid low demand – Storeys
'Rare and expensive': Why is it so hard to find a 3-bedroom rental these days? – CBC
