In a bid to address the pressing housing demand in Toronto, Prime Minister Justin Trudeau announced on Thursday a significant investment of $471 million from the federal Housing Accelerator Fund. The funds are earmarked to expedite the construction of nearly 12,000 additional housing units within the next three years.
During the announcement in Toronto, Prime Minister Trudeau emphasized that the financial infusion aims to streamline the construction process by simplifying rezoning requirements, modernizing regulations, and updating outdated zoning rules. The initiative will also extend support to existing affordable rental programs and foster the development of homes in close proximity to transit infrastructure.
Trudeau highlighted the broader impact of this investment, foreseeing the construction of over 50,000 homes in the city over the next decade. The $4-billion Housing Accelerator Fund, a federal initiative, incentivizes municipalities to enact changes in bylaws and regulations favoring increased housing construction.
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Federal Housing Minister Sean Fraser, Toronto Mayor Olivia Chow, and other key stakeholders joined Trudeau for the funding announcement. Mayor Chow expressed optimism, labeling the agreement as a “hopeful new beginning” for a city grappling with over 10,000 people sleeping in shelters nightly.
Toronto’s application for the funding was submitted in June and revised in August, outlining eight initiatives geared towards creating more affordable housing. These measures include the development of city-owned land, expediting the delivery of affordable rental homes, expanding housing options, and simplifying planning approval processes.
With this announcement, Toronto becomes the latest municipality to secure federal support under the Housing Accelerator Fund, joining a total of 16 municipalities across the country. But despite this and other efforts, there still won’t be enough housing to supply the country’s surging population.
A recent note from BMO Capital Markets estimates that the country needs 170,000 houses every three months to meet demand. The population, driven largely by immigration, grew by a staggering net total of 430,600 just in the third quarter of this year. This rate of increase hasn’t been seen since 1958, despite the considerably smaller population at that time.
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