Ontario Construction News staff writer
Ottawa Mayor Mark Sutcliffe is setting the stage for a new era of collaboration between federal and municipal governments on housing, pointing to a recent partnership worth $400 million with Prime Minister Mark Carney’s government as a model for Ontario.
At the Greater Ottawa Home Builders’ Association (GOHBA) annual Mayor’s breakfast on Jan. 8, Sutcliffe praised the city’s ability to thrive in tough economic times, highlighting that Ottawa has seen construction growth while other major Ontario markets have slowed down.
“We want to lead the country,” Sutcliffe said. “We want to say yes to housing and we want to say yes to more affordable housing.”
The mayor emphasized a significant agreement signed last month with the federal agency Build Canada Homes. This deal allocates $400 million for building 3,000 affordable homes in Ottawa using factory-built methods aimed at halving construction time.
“Together we committed to investing $400 million… That is a giant leap forward for affordable housing in our city,” Sutcliffe said.
This positive outlook comes as Ottawa reported a 22 percent year-over-year rise in housing starts through October 2025, which stands out compared to declines in the Greater Toronto Area and other southern Ontario regions.
Sutcliffe attributed part of this success to the city’s proactive Housing Action Plan, which includes plans to eliminate 13 types of development studies and introduce a new Zoning By-law designed to increase density. He also pointed out that maintaining an investment-friendly environment by keeping property tax increases around three percent annually has helped avoid fiscal shocks like those experienced in Toronto and Vancouver where rates have surged by over 20 percent in three years.
However, there are still obstacles related to funding infrastructure and development fees. Sutcliffe mentioned that while the municipal government is working on streamlining its own processes, cooperation with higher levels of government is vital for tackling issues like the “missing middle” and infrastructure gaps.
“One of the dynamics that can be frustrating sometimes is you talk to one level of government and they say, ‘oh, we’re waiting to hear from the other level of government’,” Sutcliffe said. “I think there is a willingness on the part of both the federal and provincial governments to do something… The question is what and, more importantly, when.”
With updated forecasts suggesting Ottawa’s population could increase by 680,000-much higher than the 400,000 projected in the current Official Plan-industry leaders are urging quick action so this recent progress leads to sustainable supply.
“The progress made over the past year shows what’s possible when industry and government work together,” said GOHBA Executive Director Jason Burggraaf. “But as we begin 2026, the focus must be on turning policy direction into housing on the ground.”
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