Ontario and Canada Making Homes More Affordable in Toronto

On June 23, 2026, the Honourable Doug Ford, Premier of Ontario and the Honourable Gregor Robertson, federal Minister of Housing and Infrastructure and Minister Responsible for Pacific Economic Development Canada, along with Her Worship Olivia Chow, Mayor of Toronto, announced that Toronto is receiving $1.5 billion through the Development Charge Reduction Program (DCRP) in recognition of its commitment to reducing development charges by 40 to 60 per cent, depending on the unit type, for more than three years. The funding will help build more homes and community infrastructure in the City of Toronto while advancing the province’s plan to protect Ontario by investing in projects that support economic growth and keep workers on the job.

“Our government is doing everything we can to lower costs for families, keep workers on the job and get shovels in the ground faster on new homes,” said Premier Ford, “Combined with our historic 13 per cent cut to the HST on new homes, today’s agreement will lower the cost of building new homes by more than $200,000 in Toronto, getting more shovels in the ground and creating thousands of good-paying construction jobs in the process.”

“Together, we’re building Ontario and Canada strong,” said Minister Robertson. “By partnering with Ontario, the federal government is helping speed up housing construction by lowering upfront costs and investing in housing-enabling infrastructure projects — building strong, resilient communities that boost housing supply and drive economic opportunities.”

Toronto estimates reducing the city’s development charges and investing in housing-enabling infrastructure will unlock more than 44,000 new housing units and deliver roughly $1.95 billion in relief for homebuilders. Development charge reductions in Toronto will result in approximately $83,000 in savings on the construction of a new single/semi-detached home. These development charge reductions will take effect following approval by Toronto City Council and must remain in effect for a minimum of three years.

“People should be able to afford a home in our city. Today’s announcement will make that easier while creating tens of thousands of good jobs in Toronto,” said Mayor Chow. “Through our strong partnership with the provincial and federal government, we’re reducing the cost of building new homes and ensuring the city can keep investing in the infrastructure we need to support communities.”

Development charge rates would be reduced as follows:

By 60 per cent for the following housing types:

• Single and semi-detached homes
• Apartments and multi-unit homes with two or more bedrooms, including condos and rental units
• Dwelling rooms.

By 40 per cent for the following housing types:

• Studio and one-bedroom apartments and multi-unit homes, including condos and rental units.

Subject to further due diligence, the DCRP will provide the City of Toronto with up to $1.5 billion to support infrastructure projects in communities across Toronto that will unlock housing in Canada’s largest city, including by:

• Purchasing new buses to meet current and future ridership demand
• Modernizing Line 2 signalling to enable more frequent service
• Expanding watermains that would benefit residents in the Lower Don Lands and south Leslieville, while enabling more community growth
• Delivering area-wide infrastructure improvements that address traffic congestion on St. Clair Avenue West between Keele Street and Old Weston Road
• Supporting the Liberty Village New Street project
• Reconstructing the Scarlett Road railway bridge overpass to improve safety and increase capacity
• Widening Steeles Avenue East from Tapscott Road to Ninth Line, revitalizing John Street to create a pedestrian-oriented corridor between Front Street and Stephanie Street and extending Broadview Avenue south at Eastern Avenue
• Delivering a new road connection that will extend Tradewind Avenue north to Sheppard Avenue East via Bonnington Place, supporting planned growth and improving local connectivity.

In March 2026, Ontario and Canada agreed to a cost-matched structure to provide a combined $8.8 billion over 10 years for infrastructure investments in Ontario, with Canada’s share of the funding flowing through the Build Communities Strong Fund. The Build Communities Strong Fund was launched by the federal government this year to accelerate infrastructure projects across the country and reduce costs. The two governments also agreed to remove the full HST on new homes from April 1, 2026, to March 31, 2027, saving homebuyers up to $130,000 off the cost of a new home in addition to the savings realized through the DCRP.

As part of the Canada-Ontario Partnership to Build, the DCRP is delivering funding over 10 years for housing-enabling infrastructure projects. Funding is being prioritized for municipalities that reduce development charges for all residential types by 30 per cent to 50 per cent or greater and maintain the reductions for at least three years.

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