The federal government has unveiled new programs to accelerate rental construction in an effort to address Ontario's housing shortage.
Here's a snapshot:
- Toronto – $1.2 billion for 2,644 rental homes across seven new projects.
- London and St. Thomas – $157 million for 648 units in two apartment buildings.
- Kingston and Peterborough – $60 million for 204 units in two apartment buildings.
The federal government has also pledged $15 billion for 10-year loans to support new rental builds and an additional $1 billion for affordable housing construction, with the goal of creating 30,000 new homes across all of Canada.
In addition, the Goods and Services Tax on new purpose-built multifamily rental construction was recently removed in September, further incentivising developers to contribute to the province's housing stock.
These efforts align with Ontario's goal of constructing 1.5 million homes by 2031. However, economist Mike Moffatt emphasized the urgency of ramping up construction output to 150,000 new units per year by 2025 if the province wants a chance at meeting its housing targets.
The hope is that these funds pave the way for a more sustainable and affordable rental market in Ontario. Plus, more rental units coming online may attract more investors, potentially creating demand for property managers to oversee new portfolios.
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