Toronto’s apartment sector is set for another wave of new supply following a joint announcement from the City of Toronto and the Government of Canada, confirming up to $2.7 billion in federal funding to speed up housing delivery and expand purpose‑built rental stock. The City is adding $703.7 million of its own funding and incentives, a combined investment expected to bring 5,600 rental homes to neighbourhoods across the city.
The federal contribution includes more than $1.8 billion in low‑cost financing through the Apartment Construction Loan Program, backing nine projects that will deliver over 3,700 rental units. A further $310 million through Build Canada Homes will advance nine additional projects on City‑owned land, producing roughly 1,800 homes across a mix of affordable, rent‑geared‑to‑income, rent‑controlled and supportive housing. These City‑led developments will be delivered with public, non‑profit and Indigenous housing partners.
Prime Minister Mark Carney framed the announcement as evidence that intergovernmental collaboration can meaningfully shift rental supply: “Toronto is becoming a model for how a great city can build its way forward… This is what is possible when governments build together.”
Mayor Olivia Chow echoed the affordability focus, noting that the investment “means more people will have the opportunity to find a home they can afford, stay close to their communities and build a future in the city they love.”
The funding arrives as Toronto continues to roll out policy tools aimed at lowering project costs and accelerating timelines. Earlier this year, the City, Province and federal government introduced the Development Charge Reduction Program, a $1.5‑billion initiative that cuts development charges by 40–60% for more than three years. Toronto is also launching a new phase of its Purpose‑Built Rental Housing Incentives Stream, allowing development charges to be deferred indefinitely for projects that include at least 20% affordable units.
Taken together, these measures signal a coordinated effort to stabilize and expand rental supply at a time when demand remains high and construction economics are strained. For the apartment sector, the latest announcement adds momentum to a growing pipeline of projects supported by clearer partnership models, more predictable capital, and incentives aimed at long‑term affordability.
