Big news for Toronto’s real estate market! The federal government has announced $2.55 billion in low-cost financing to accelerate the construction of 4,831 rental homes, including at least 1,075 affordable units. This investment, secured through the CMHC’s Apartment Construction Loan Program, is a game-changer for Toronto’s housing supply.
Mayor Olivia Chow emphasized the importance of this funding, stating that it will fast-track much-needed housing projects across the city. To support the initiative, the city has also committed $234.83 million in development incentives, reducing fees and taxes to encourage construction.
Several key projects will benefit from this funding, including developments at 777 Victoria Park Ave. and 50 Wilson Heights Blvd. These long-delayed projects—part of the HousingNow initiative—are finally moving forward, but experts argue they could have started much earlier.
Mark Richardson, CTO at HousingNow, believes this funding is a step in the right direction but stresses that Toronto still needs 65,000 rental units in the next six to seven years. With continued federal support, more financing could follow in the future.
One of the biggest beneficiaries of this investment is the Quayside development, which will deliver 1,267 rental units on Toronto’s waterfront. The master-planned community will eventually provide homes for 7,500 residents, with construction set to begin in 2026.
Additional funding will support rental projects at 49 Ontario St., 250 Wincott Dr., 26 Gilder Dr., and 3379-3385 Lawrence Ave. E.
Beyond housing, Ottawa has also pledged $25.8 million over two years to address homelessness in Toronto, with a focus on transitioning people from encampments into stable housing. This complements the city’s $400 million in financing to support these efforts.
For buyers, sellers, and investors, this is a significant development. Increased rental supply could ease demand pressures and provide more options in a competitive market. As a realtor, I see this as a strong signal that Toronto is taking bold steps to address affordability challenges and expand its housing inventory.
Richard Wang 