Missing Middle Housing and Infill Investment: Finding the Right Balance

Why Missing Middle Housing Is Important to Us

There is a significant gap between a detached house and a high-rise apartment building. Missing middle housing refers to housing types that can help fill that gap.

Examples include duplexes, triplexes, townhomes, small apartment buildings, and other forms of low-rise multifamily housing.

These housing types can add density to established neighbourhoods without requiring every area to become a neighbourhood of towers.

For NCTL Group, missing middle development also creates an opportunity to provide housing for different types of households.

Families need homes. Young professionals need homes. Older adults looking to downsize need homes. People with disabilities need homes. People with different incomes need housing options that suit their circumstances.

When a development reaches an appropriate scale, it may offer more flexibility to consider different unit types, affordability, and accessibility while still working toward financial sustainability.

That balance matters to us. A project needs to make financial sense to get built, but financial performance does not have to be its only purpose.

NCTL Story #3: Why We Chose to Include Affordable and Accessible Homes

When our families first arrived in Canada, we experienced firsthand what it meant to need affordable housing. We were on waiting lists and competing with many other newcomer families simply to find an affordable place to call home.

That experience stayed with us.

We understand the ambition it takes to leave everything behind, travel thousands of miles, and start again. Having an affordable home can give a family the stability to dream again.

That is why affordability has always been part of NCTL's vision.

We have also learned that impact and profitability must be intentionally balanced. More units can create flexibility, with market-rate homes helping support affordable ones. The right investors matter, too: partners who want financial returns but also understand the value of creating meaningful housing opportunities.

As Black mothers, we want families to have options and the ability to shape their futures rather than simply accept what circumstances give them.

Our approach is not about ignoring the financial realities of development. It is about considering how a project can remain viable while contributing to a broader housing need.

Is Infill Development a Good Real Estate Investment?

For investors, infill development can be attractive because it creates value differently from simply purchasing an existing rental property.

A developer takes land or an underused property and works through the development process to create something that did not exist before. However, the process involves risks that investors should understand before committing capital.

When evaluating an infill development opportunity, we believe investors should ask important questions:

• What is the developer's plan for the property?

• Does the current zoning support that plan?

• Which approvals are still required?

• What assumptions are being made about construction costs?

• Is there an appropriate contingency in the budget?

• How will the project be financed?

• What happens if the schedule changes?

• What experience does the project team have?

• What is the exit strategy?

• What could cause the project not to perform as expected?

An attractive projected return is only one part of an investment decision. Understanding the development plan, its assumptions, and how risks will be managed is equally important.

Investors should also understand that projected outcomes are not guaranteed. Construction costs, approval timelines, financing conditions, market demand, and other factors can affect the final result.

Balancing Financial Sustainability and Housing Impact

Affordable and accessible housing considerations need to be incorporated into the development process rather than treated as an afterthought.

That means examining the proposed unit mix, construction costs, financing structure, potential revenue, and the needs of future residents together.

A project that is financially unsustainable may not be delivered as planned. At the same time, focusing only on financial performance can overlook opportunities to create housing that serves a wider range of people.

At NCTL Group, we continue to explore how thoughtful design, appropriate development scale, and careful financial planning can support both project viability and housing impact.

Looking Beyond the Numbers

Missing middle housing can provide more choices within established communities, while infill development can create opportunities to use existing land more effectively.

For investors, these projects require careful evaluation. For developers, they require a clear understanding of the relationship between financial feasibility, construction, planning, and community needs.

Our goal is to approach each project with these considerations in mind and to share what we learn along the way.

Follow NCTL Group as we continue sharing our experience with infill development, missing middle housing, and the decisions involved in creating more housing options in Canada.