A new University of Waterloo-led research initiative is taking aim at one of the region’s most pressing challenges: the growing gap between incomes and the cost of homeownership.
The Future Cities Institute (FCI) has launched a living lab in partnership with BUILD NOW, an affordable housing initiative led by Habitat for Humanity Waterloo Region, to study a new model of “missing middle” homeownership now moving toward construction in Waterloo.
BUILD NOW aims to build 10,000 homes across Canada by 2030, focusing on townhouses, walk-ups, mid-rise, and high-rise buildings designed for families priced out of traditional ownership. Seventy per cent of the homes will be ownership units held under a legal model that keeps them affordable in perpetuity.
The first Waterloo project will be built on a 25-acre site and include more than 1,000 homes. FCI researchers will embed directly into the development process, tracking outcomes for residents, neighbourhoods and municipalities as the project unfolds.
“This is really an equal partnership between industry, non-profits, municipalities and the university,” said Leia Minaker, director of the Future Cities Institute and a professor in the School of Planning. “Our role is to step back and objectively evaluate how this model works, what the outcomes are, and how it affects people’s lives.”
Alongside Habitat for Humanity, partners include developers, co-operative housing organizations and the cities of Waterloo and Kitchener, which have entrusted land to the project.
Unlike supportive or deeply subsidized housing, BUILD NOW targets households still able to qualify for a mortgage but unable to compete in today’s housing market – including nurses, teachers, firefighters and other middle-income workers.
“These are people who, 40 or 50 years ago, absolutely would have been able to buy a home,” Minaker said. “Now they’re locked out because prices are so high.”
That distinction may help explain the relatively strong public support the project has received locally. Minaker said feedback from early public consultations was largely positive, with few objections raised.
Construction on the first building is expected to begin in the coming months, with building permits already secured.
The living lab is funded through the university’s Global Futures Fund and draws on FCI’s interdisciplinary structure, bringing together researchers, students, municipalities and industry partners. The work intersects with all five of the university’s Global Futures priorities, from health and well-being to sustainability and economic resilience.
“This is about much more than housing policy,” Minaker said. “Affordable homeownership affects family health, the local economy, environmental outcomes, infrastructure, and even how we design technology for cities.”
Researchers will examine not only whether the BUILD NOW model delivers long-term affordability, but also how it shapes community stability, municipal costs and quality of life for residents. The goal is to generate evidence that can guide other communities considering similar approaches.
“At this scale, this hasn’t been tried before in Canada,” Minaker said. “There’s a lot to learn – about whether it can scale, how it actually performs, and what it means for communities.”
BUILD NOW partners are already looking beyond Waterloo Region, seeking additional municipal partners and landowners interested in replicating the model elsewhere.
For Minaker, the project represents both a practical experiment and a shift in how housing solutions are developed.
“Canada needs housing solutions that are ambitious, but also grounded in evidence,” she said. “If we test bold ideas carefully and share what we learn, we can help build communities that are fair, productive and future-proof.”
