Making Housing More Affordable in Toronto

The Development Charge Reduction Program aims to help fund housing-enabling infrastructure projects, cutting the cost of building many new homes by $83,000.

TORONTO – Today, the Honourable Doug Ford, Premier of Ontario, along with the Honourable Gregor Robertson, federal Minister of Housing and Infrastructure and Minister Responsible for Pacific Economic Development Canada, and Her Worship Olivia Chow, Mayor of Toronto, announced that Toronto will receive $1.5 billion through the Development Charge Reduction Program (DCRP). This funding acknowledges the city’s commitment to lowering development charges by 40 to 60 percent for over three years. The financial support will aid in constructing more homes and community infrastructure in Toronto while advancing the province’s goal of protecting Ontario by investing in projects that promote economic growth and keep people employed.

“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 percent cut to the HST on new homes, today’s agreement will reduce the cost of building new homes by more than $200,000 in Toronto. This means more shovels hitting the ground and thousands of good-paying construction jobs created along the way.”

“Together, we’re building a stronger Ontario and Canada,” said Minister Robertson. “By partnering with Ontario, the federal government is helping accelerate housing construction by lowering upfront costs and investing in projects that enable housing – creating strong communities that enhance housing supply and drive economic opportunities.”

Toronto estimates that reducing development charges while investing in housing-enabling infrastructure could unlock over 44,000 new housing units and deliver about $1.95 billion in relief for homebuilders. The reductions in development charges could save approximately $83,000 when constructing a new single or semi-detached home. These changes will take effect after approval from Toronto City Council and must remain valid for at least three years.

“People should be able to afford a home in our city. Today’s announcement makes that easier while creating tens of thousands of good jobs here,” said Mayor Chow. “Through our strong partnership with both provincial and federal governments, we’re working together to bring down construction costs for new homes while ensuring ongoing investment into necessary infrastructure for our communities.”

Development charge rates will be reduced as follows:

By 60 percent for these types of housing:

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

By 40 percent for these types of housing:

Studio apartments and one-bedroom multi-unit residences including condos and rental units.

Pending further evaluation, DCRP will provide up to $1.5 billion to help support infrastructure initiatives across various neighborhoods in Toronto aimed at unlocking additional housing opportunities by:

Purchasing new buses to meet current ridership needs Modernizing Line 2 signalling for more frequent service Expanding watermains benefiting residents around Lower Don Lands and south Leslieville while supporting community growth Implementing area-wide improvements addressing traffic congestion on St. Clair Avenue West between Keele Street and Old Weston Road Backing up Liberty Village New Street project Reconstructing Scarlett Road railway bridge overpass for improved safety and capacity Widening Steeles Avenue East from Tapscott Road to Ninth Line; revitalizing John Street as a pedestrian-friendly corridor between Front Street and Stephanie Street; extending Broadview Avenue south at Eastern Avenue Creating a new road connection extending Tradewind Avenue north towards Sheppard Avenue East via Bonnington Place which supports planned growth while enhancing local connectivity.

In March 2026, Ontario together with Canada established a cost-matched framework providing a total combined funding of $8.8 billion over ten years aimed at infrastructure investments within Ontario. Canada’s portion comes through Build Communities Strong Fund which was introduced this year by Ottawa to expedite infrastructure projects nationwide while minimizing expenses. Additionally, both governments agreed on eliminating full HST from April 1st until March 31st next year specifically on newly built homes saving buyers up to $130k alongside savings through DCRP.

As part of their joint effort called Canada-Ontario Partnership To Build , DCRP ensures funding over ten years intended specifically toward enabling infrastructures related directly towards residential developments-especially focusing funds toward municipalities decreasing their development charges anywhere from thirty percent up till fifty percent or higher maintaining those reductions consistently across three years period.

Quick Facts

Funding provided via DCRP will back essential infrastructures such as water systems wastewater treatment roads bridges transit services fire stations police detachments plus community amenities like libraries recreation centers designed enriching neighborhoods around them. Receiving these funds relies upon City Of Toronto signing Transfer Payment Agreement officially agreeing terms set forth complying fully within program stipulations involved. Municipalities are expected contribute minimum ten percentage towards project overall costs under DCRP’s conditions. Out Of four hundred forty-four municipalities spread throughout Ontario more than two hundred currently impose development fees.

Quotes

“We know it takes too long along with being overly expensive when trying build brand-new houses across this province! Our government remains committed working alongside municipal federals partners remove any obstacles slowing down construction rate allowing newer residences become available sooner!”

– Rob Flack
Minister Of Municipal Affairs And Housing

“Continuing efforts taken cooperate hand-in-hand amongst federal municipal authorities we aim lessen affordability burdens thus paving way quicker house constructions paired simultaneously generate plenty well-compensated positions available locals within sector too! With investments facilitating necessary infrastructures thru Development Charge Reduction Programs we’re catalyzing positive advancements promoting economic growth assuring cities stay competitive places reside work thrive”

– Peter Bethlenfalvy
Minister Of Finance

“As part ongoing capital strategy worth Two Hundred Thirty-Six Billion dollars safeguarding Ontarios future-we’re developing roadways along Water Systems ensuring all future homebuilding possibilities arise effortlessly! With initiatives like Developing Charge Reductions Program coupled Municipal Housing Infrastructure Programs-we provide vital assistance communities require speedily increase availability quality essential infrastructural amenities boosting economy keeping prices low”

– Todd J. Mc Carthy
Acting Minister Of Infrastructure

“Investments made towards improving infrastructural capabilities here mean greater efficiency getting people where they need faster! Through collaboration surrounding Dev Charges reduction scheme-we’re achieving crucial results focused mainly transportation upgrades ensuring smoother commutes unlocking pathways leading fresh living spaces fostering connected stronger societies left generations enjoy ahead!”

– Prabmeet Sarkaria
Minister Transportation

“This announcement highlights importance jointly funded major municipal infrastructural undertakings-excitedly awaiting upcoming clarifications about participants seeking engage province finalize agreements soon enough resulting accelerated house buildups across respective areas”

– Marianne Meed Ward
Mayor Burlington Chair O ntario Big City Mayors

“Today marks important movement restoring pricing equilibrium improving access opportunities obtaining decent shelter experiencing urban life among citizens residing here ! Thanks Collaboration seen various tiers governance tackling longstanding issues regarding supply fluctuations seen dramatically rise last decade representing substantial portions associated each property purchase expense facing prospective homeowners alike!”

– Scott Andison
Chief Executive Officer O ntario Home Builders’ Association

The Building Industry Land Development Association representing interests applauds this momentous decision collectively shared among local regions centered around advocacy removing excessive developmental fees burden imposed affecting affordability hinderances faced necessitating better solutions implemented ensure sustainability continuing vitality thriving industries established well past decades!

‘- Dave Wilkes PRESIDENT CEO BUILDING INDUSTRY LAND DEVELOPMENT ASSOCIATION’

‘Development charges exist largest governmental impositions impacting purchasing price models hindering overall market movements stalling viable constructions ultimately leading worsening scenarios affordability challenges noticed heightened increased demands existing landscapes impacting rentals even longer periods compared before’ In recognition these problems TRREB has supported actively advocating lower upfront developer levies deemed effective remedy unfolding affordability issues ultimately assisting increasing stocks coming online presently responsive also appreciative cooperation extended stakeholders supporting initiative underway!’

– Daniel Steinfeld PRESIDENT TORONTO REGIONAL REAL ESTATE BOARD(TRREB) ‘

“This represents notable advancement opportunity intended lead sizeable relaxation constraints currently hampering vital rental markets encouraging momentum progressively evolving landscape advantageous newcomers exploring affordable options!”

– Tony Irwin PRESIDENT CEO FEDERATION RENTAL-HOUSING PROVIDERS ONTARIO’

“Ontario Real Estate Association welcomes collaborative approach achieved through multiple levels governance showcasing commitment foster closer ties strengthening support networks realigning priorities effectively addressing pressing matters emerging neighborhoods establishing healthy foundations growth!” As stakeholders engaged exchange encouraging proactive measures initiate shifts tackling shortage worries prevailing cities comprehensively resolving systemic barriers confronting diverse populace pursuing securing sustainable accommodations safely.”

– Kim Fairley2026 President ONTARIO REAL ESTATE ASSOCIATION”

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