Canada Housing Market

Ontario Premier Doug Ford has announced an additional $1.6 billion in funding for municipalities to support housing-enabling infrastructure projects. The funding boost is aimed at accelerating housing development across the province, particularly as Ontario struggles to keep pace with its ambitious homebuilding targets.

$1.6 Billion for Housing Infrastructure

The announcement was made at the Association of Municipalities of Ontario conference in Ottawa. Ford stated that this new funding comes on top of the $2.3 billion already committed through the Municipal Housing Infrastructure Program, which supports essential infrastructure such as:

• Roads and bridges
• Water and wastewater systems
• Other critical municipal projects needed to unlock housing developments

Municipalities can apply through four funding streams, with the goal of ensuring that essential infrastructure is in place before or alongside new housing developments.

Ontario’s Housing Targets Lagging Behind

Ford’s government has set a target of building 1.5 million homes by 2031, but recent numbers show the province is falling behind. In 2024, construction began on 94,753 housing units, well short of the interim goal of 125,000.

Even with the province’s updated housing tracker including long-term care homes and university dormitories in the count, the numbers remain below expectations.

National vs. Ontario Housing Starts

The latest Canada Mortgage and Housing Corporation (CMHC) figures highlight the challenge Ontario faces. While Canada’s annual pace of housing starts in July 2025 rose by 4% year-over-year, Ontario saw a 28% decline. This gap underscores the urgent need for more aggressive strategies to boost supply.

What This Means for Homebuyers and Investors

For buyers and investors, Ontario’s struggle to meet housing targets may prolong affordability challenges. With demand still outpacing supply, home prices are unlikely to see major relief in the near future. However, infrastructure investment could eventually pave the way for faster development and new communities across the province.

Final Word

Ontario’s additional $1.6 billion investment in housing-enabling infrastructure is a critical step, but experts warn that without a dramatic acceleration in construction, the province risks missing its long-term housing targets. For now, affordability pressures will remain front and center for Ontario homebuyers.

---