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2h ago

Ontario’s $1.6 Billion Housing Pledge Falls Short of Infrastructure Needs

Infrastructure for roads, transit and utilities requires far more funding than fee cuts or short-term grants provide.

The overall property tax increase in the budget directions report is up to 3.75 per cent.
Ontario Premier Doug Ford speaks to the media during a funding announcement in Hamilton, Ont., Wednesday, Aug. 20, 2025.
Mayor Mark Sutcliffe gives an update on this fall's budget at Ottawa City Hall on Thursday.

Overview

  • Premier Doug Ford announced a $1.6 billion housing infrastructure package on Aug. 20 and signalled changes to development fees.
  • Ontario’s build pace continues to lag targets, with 94,753 housing starts in 2024 against a need for 125,000, FAO figures at their lowest first quarter since 2009, and CMHC reporting a 28% year-over-year drop in July starts as national starts rose 4%.
  • The Canadian Urban Institute estimates about $100,000 in infrastructure is required for each new home, underscoring the scale of the financing gap.
  • Industry data show sharp rises in municipal development charges, including increases of 23% to 29% across Ottawa zones from late 2023 to 2024 and fee levels for single homes inside the Greenbelt reaching $48,265.
  • Ottawa missed its 2024 target by building 7,871 of 12,583 planned homes and lost provincial funds, and a ByWard Market infill project stalled under roughly $700,000 in charges, illustrating pressure on smaller developers.