Toronto – The federal government has announced an investment of $2.7 billion over the next three years to build more than 18 housing projects across the City of Toronto. Canadian Prime Minister Mark Carney unveiled the major package on Wednesday, aiming to tackle the region’s ongoing rental affordability crisis and increase overall housing supply.
The joint initiative between the federal government and the City of Toronto will deliver 5,600 new rental units. Among these, 1,800 units are designated as deeply affordable, supportive, or rent-controlled homes. Prime Minister Carney highlighted that construction on roughly 4,500 units—representing 80 per cent of the total plan—is scheduled to break ground by the end of this year. Priority build sites include hard-hit neighbourhoods facing rising rents and evictions, such as a 16-story complex in Parkdale and a development at 158 Borough Drive in Scarborough.
Toronto Mayor Olivia Chow welcomed the funding, emphasizing that the partnership will secure housing stability for thousands of local workers and families. The $2.7-billion strategy operates through two primary avenues:
- Non-Market & Non-Profit Housing: Over $310 million in federal funding will flow through Build Canada Homes for nine projects on city-owned land. This branch delivers 1,900 homes (including 740 affordable units), supported by $530 million in City contributions and 99-year municipal property tax exemptions.
- Market-Rate Housing: The federal government is allocating over $1.8 billion in low-cost financing to support nine private-sector projects, creating 3,700 additional homes—more than 1,000 of which will meet affordable criteria.
While officials noted that these projects had previously been stalled due to financing gaps, opposition critics argued that the announcement re-packages previously planned builds rather than offering genuinely new solutions.
