The Realtor’s guide to Canada’s sustainable housing future

As Canada continues to grapple with housing challenges, real estate professionals and housing providers are increasingly being drawn into conversations about how we build, where we build, and for whom, working to find housing that is financially more accessible to meet demand as quickly as possible. 

Terms like “purpose-built rentals,” “multi-family homes,” and “sustainable development” are more than just industry buzz. They represent a shift in housing strategy that directly impacts the decisions Realtors make and the advice they give their clients. For Canadian Realtors, understanding these concepts is crucial to staying relevant and responding effectively to evolving market needs.

If you’re a Realtor, you’re likely already fielding questions from buyers and renters about affordability and the future of housing. So, what do these concepts mean for your business, and how can you apply this knowledge to serve your clients better?

What defines sustainable policy?

“Sustainable” is a term we hear often, especially when it comes to economic and environmental issues, ranging from global to local levels. But what exactly does sustainability mean for new homes?

Sustainable development focuses on three main pillars: environmental, social, and governance (commonly referred to as ESG for short). These commitments address important issues that affect both the environment and society. 

Policy in development and urban planning is essential in helping manage environmental impact, including waste management and consumption. The social aspect looks at quality of life for clients and employees alike, while the governance pillar focuses on everything from data protection to resident and investor rights. 

In April 2024, the Government of Canada introduced the “Solving the Housing Crisis: Canada’s Housing Plan,” aiming to unlock millions of new affordable homes by 2031. This comprehensive strategy focuses on accelerating housing construction and promoting sustainable development across the country.

These ESG policies, in combination with each other, act as overarching guidelines for design implementations, ensuring new developments meet the demands of the modern market. 

Key pillars of sustainable residential development in practice

Adaptive reuse: Enhancing efficiency and reducing waste

Another area of interest is adaptive reuse, where existing structures, such as schools or churches, are converted into housing. This form of development preserves community character, reduces construction waste, and expedites the building process compared to starting from scratch. Realtors who understand how adaptive reuse works have a unique edge when working with investor or developer clients.  

These types of buildings have a unique charm that many potential buyers or renters are looking for. Similarly, infill housing (densifying underused lots within urban or suburban areas) is gaining momentum in places like Ottawa, Calgary, and Hamilton.

Revitalizing neighbourhoods and strengthening communities

Housing shortages are a pressing concern in many of Canada’s urban centers, contributing to rising rental and purchase prices nationwide. This means paying close attention to where these infill projects are happening. These projects often bring new listings in highly desirable neighbourhoods, and by staying on top of local planning updates, you can identify these growth pockets early and help both buyer clients and investors get ahead of future demand. You can also guide clients looking for walkable communities toward mixed-use developments that combine housing with amenities such as grocery stores, pharmacies, restaurants, and cafes, as these features are an increasingly important factor that clients are seeking. 

Just look at the recent popularity of the concept of the “15-minute city,” where renters and buyers are seeking homes in places where they can easily walk or bike. 

Championing purpose-built rentals and future-forward development 

In 2024, CMHC reported that Canada’s purpose-built rental market experienced its highest annual supply growth in over three decades, increasing by 4.1%. This surge was particularly notable in Montréal and Calgary, which contributed significantly to the national increase. While the market won’t shift completely overnight, these types of projects are steadily increasing in numbers, and they represent significant opportunities. 

Start by building relationships with developers focused on these builds so you can be among the first to market new inventory to renters or buyers. Educate your clients about the benefits of professionally managed, purpose-built rentals, including modern amenities and long-term rental security. By positioning yourself as a resource on these trends and connecting clients to emerging developments, you not only add value to the client experience but also expand your own reach in a fast-evolving market.

How does this impact me and my clients? 

Clients expect their Realtor or leasing agent to be more than a transaction facilitator. They’re looking for someone who can help them understand not just what’s available, but why certain properties or neighbourhoods might be better aligned with their goals. That means that being informed about sustainable housing strategies sets you apart. Attending municipal planning meetings, staying in touch with local builders, or simply keeping tabs on ESG initiatives in your area can go a long way in setting yourself apart. Even just subscribing to local development newsletters is a great way to stay up to date.

While economic uncertainty has certainly slowed some development, it has also sharpened the focus on sustainable planning. Realtors who recognize that sustainability isn’t a passing trend but an actual structural change in how communities grow will be better prepared to thrive in the evolving Canadian housing market. 

Actionable steps for Realtors

• Subscribe to local municipal newsletters to stay informed about new developments and housing policies.
• Engage with developers specializing in purpose-built rentals to gain early access to upcoming projects.
• Attend local planning meetings to understand zoning changes and infill project opportunities.
• Educate clients on the benefits of sustainable and ESG-compliant housing options.
• Utilize tools like CMHC’s Housing Market Information Portal to analyze regional housing trends and data.
• Promote walkable, mixed-use communities that align with the “15-minute city” concept to clients seeking convenience and sustainability.