According to the Prime Minister of Canada's office, the federal government and the City of Toronto will invest over $2,7 billion over the next three years to build more than 18 housing projects across the city. Prime Minister Mark Carney announced the partnership alongside Toronto Mayor Olivia Chow, framing it as a way to unlock projects that had already been planned, permitted and approved but lacked the financing to begin construction.
The projects will deliver more than 5.600 new rental homes, with shovels in the ground on more than 4.500 homes before the end of this year, the release states. Every home in the portfolio is a rental unit, spanning affordable, supportive, rent-geared-to-income and rent-controlled categories. The federal government describes the approach as combining two channels, one non-market stream delivered through Build Canada Homes and one market-based stream, to cover the full range of housing needs.
The announcement builds on the Canada-Ontario Partnership to Build, through which Ottawa already provided the City of Toronto with $1,5 billion to cut residential development charges by 40 to 60%. According to the release, that reduction lowers the cost of building a new single or semi-detached home by roughly $83.000. The federal government also points to the elimination of the GST on homes up to $1 million for first-time buyers, saving up to $50.000, and the removal of the full 13% HST on new homes in Ontario, saving buyers up to $130.000.
The Prime Minister's office notes that this Toronto partnership follows the launch of Build Canada Homes in September, which has since committed to nearly 17.000 units through 17 partnerships, with more than 1.900 homes already under construction nationwide.