Canada, Ontario Pledge $8.8 Billion for Housing Infrastructure

In Toronto on Monday, Prime Minister Mark Carney and Ontario Premier Doug Ford announced a joint commitment of 8.8 billion dollars in infrastructure funding to accelerate home construction across the province, with each government contributing 4.4 billion dollars over the next decade. The deal, unveiled alongside Toronto Mayor Olivia Chow, requires municipalities to reduce development charges by 30 to 50 percent for three years to qualify, aiming to offset rising construction costs and address Ontario's housing shortage.

The funding stems from Ottawa's 51 billion-dollar Build Communities Strong Fund, marking its first allocation. Development charges, fees developers pay to cities for infrastructure like transit, water and sewer systems supporting new housing, have surged in recent years, experts say, contributing to higher home prices and fewer builds. According to the Canada Mortgage and Housing Corp., national housing starts rose 5.6 percent in 2025 but declined outright in Ontario, with forecasts predicting further drops through 2028 due to high costs and weak demand. Ontario faces some of the country's highest such charges, exacerbating construction challenges.