Toronto Secures Up to $2.7 Billion for New Rental Housing Initiatives

📅 5 days ago 🏷️ City of Toronto Municipality

Toronto and the Government of Canada announce a joint investment of up to $2.7 billion to accelerate housing supply, delivering 5,600 new rental homes across the city.

On August 5, 2026, the City of Toronto, in collaboration with the Government of Canada, revealed a substantial financial commitment aimed at enhancing the housing supply in the city. This initiative includes a joint investment of up to $2.7 billion, specifically earmarked to promote the development of new purpose-built rental housing. As part of this effort, the City of Toronto is contributing $703.7 million in funding and financial incentives to facilitate the unlocking of these housing projects.
Through this strategic partnership, a total of 5,600 rental homes are set to be constructed in various neighborhoods throughout Toronto. This move signifies a major intergovernmental effort to tackle the ongoing housing crisis and improve affordability for residents. The investment is aligned with the City’s ongoing mission to create new housing opportunities, thereby aiding in the delivery of homes for both current and future residents.
The Government of Canada is playing a pivotal role in this initiative by providing over $1.8 billion through its Apartment Construction Loan Program. This funding will support nine housing projects that are expected to yield more than 3,700 rental homes within the city. Additionally, the federal government is allocating $310 million via the Build Canada Homes program to advance over 1,800 rental homes across nine further housing projects located on City-owned land.
These City-led projects will encompass a variety of housing types, including affordable, rent-geared-to-income, rent-controlled, and supportive homes, developed in partnership with public, non-profit, and Indigenous housing providers. This investment not only aims to increase the housing supply but also seeks to boost the local economy through job creation and procurement processes.
The announcement also highlights the collaborative commitment of the City and the Government of Canada to expedite the provision of affordable housing in Toronto. In a related effort, the City, along with the Province of Ontario and the Government of Canada, has recently introduced the Development Charge Reduction Program. This program, amounting to $1.5 billion, aims to reduce development charges by 40 to 60 percent over three years, thereby stimulating the construction industry while ensuring the funding of essential infrastructure to support growth.
Moreover, the City is initiating a new phase of the Purpose-Built Rental Housing Incentives Stream, utilizing City resources to allow for the indefinite deferral of development charges for projects that include a minimum of 20 percent affordable housing. Collectively, these initiatives are designed to create favorable conditions for the expedited delivery of more homes, while also ensuring long-term affordability and the development of complete communities throughout Toronto.
Prime Minister Mark Carney commended the partnership, stating, "Toronto is becoming a model for how a great city can build its way forward. Together with the City of Toronto, we are getting thousands of new rental homes built, across every part of the housing system, in strong, safe communities that people can afford. This is what is possible when governments build together."
Minister Gregor Robertson echoed this sentiment, emphasizing that every Canadian deserves access to safe and affordable housing. He noted that this partnership is crucial in aligning investments and promoting the swift construction of essential housing units. Olivia Chow, the Chief Executive Officer of the City of Toronto, also expressed gratitude towards federal partners, highlighting the importance of this funding in providing more opportunities for residents to secure affordable housing in their communities.
Toronto, with its diverse population of over three million, stands as Canada's leading economic hub and one of the most livable cities globally. This funding initiative is not only a response to the immediate housing needs but also a strategic move to position Toronto favorably as it prepares to host the FIFA World Cup 2026™, reinforcing its status as a leader in various sectors including technology, finance, and culture.

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