Toronto Breaks Ground on New Sustainable Housing Development

📅 Today 🏷️ City of Toronto Municipality

The City of Toronto, CreateTO, and the Government of Canada have commenced construction on a new housing development that incorporates rent-control and sustainability, aiming to provide affordable homes for residents.

On August 24, 2026, a significant milestone was reached as the City of Toronto, in collaboration with CreateTO and the Government of Canada, officially initiated construction on a sustainable housing project located at 1113–1125 Dundas St. W. This development, situated at the intersection of Dundas Street West and Ossington Avenue, is set to introduce a total of 74 new rent-controlled residences, which will include a minimum of 17 affordable housing units. The innovative project aims to tackle Toronto's pressing housing challenges while also contributing to climate change mitigation efforts through low-carbon mass timber construction and energy-efficient design. More than 40 percent of the new units will feature two or three bedrooms, fostering a vibrant and inclusive community environment.
The initiative is part of a broader strategy to transform a previously utilized municipal parking lot into affordable, non-market rental housing targeted primarily at low- and moderate-income residents. By stepping up as a public developer, the City of Toronto is redefining its approach to land use, emphasizing the creation of affordable homes that align with the needs of its residents, while also streamlining the development review and approval processes.
This project will be spearheaded by CreateTO and is included in the City’s ongoing efforts to redevelop various sites into diverse rental housing options within mixed-income communities on public land. An experienced non-profit housing provider will be appointed to oversee the management of the new building.
Designed to promote a lower-carbon lifestyle and connected to public transit, the development will incorporate sustainable design practices, such as geothermal energy and mass timber construction methods, aimed at minimizing environmental impact. This initiative is a testament to the City of Toronto’s commitment to providing scalable affordable housing solutions that align with its climate action objectives and expedite housing availability.
The collaborative effort is made possible through a robust partnership between the Government of Canada and the City, with the former providing capital funding and incentives to facilitate the project. The financial backing from the Government of Canada’s Build Canada Homes initiative plays a crucial role in enabling this project to commence and ultimately deliver more housing options for the residents of Toronto.
This development contributes to the City’s ambitious HousingTO Plan, which aspires to create 65,000 new rent-controlled homes by the year 2030. The target includes 41,000 affordable rental units, 6,500 rent-geared-to-income homes, and 17,500 rent-controlled residences.
Quotes from key stakeholders underline the significance of this initiative. Olivia Chow, the Mayor of Toronto, emphasized the importance of transforming City-owned land into new rental housing that is both affordable and family-oriented, while Danielle Martin, the Member of Parliament for University-Rosedale, highlighted the project as a prime example of effective collaboration to address housing shortages. Councillor from Spadina-Fort York expressed excitement over the welcomed addition of affordable homes in the Ossington community, noting the focus on family-sized units.
Ana Bailão, President and CEO of Build Canada Homes, remarked on the project’s potential impact, stating that it represents a successful partnership aimed at maximizing the utility of public assets to meet local housing demands. Vic Gupta, CEO of CreateTO, noted the agency's ongoing commitment to delivering more than 5,000 homes on City-owned properties, thereby accelerating the transformation of Toronto’s valuable real estate into necessary housing solutions.
As one of Canada’s largest cities, Toronto continues to evolve, housing over three million residents from diverse backgrounds, making it a hub for economic growth and innovation. This project not only aims to improve housing availability but also aligns with the City’s broader goals of sustainability and community development.

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