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Canada commits C$2.7 billion to Toronto rental housing in three-year construction push

8/5/2026

Canada's prolonged rental housing shortage, most pronounced in Toronto, has drawn a direct response from the federal treasury at a moment when private sector construction activity has thinned.

Prime Minister Carney announced that the government will commit 2.7 billion Canadian dollars over three years toward the construction of rental housing projects in the city.

Federal capital anchors the rental cycle The size of the commitment and its concentration on Toronto signals that Ottawa views the city's supply gap as severe enough to warrant a dedicated federal programme rather than a broader, nationally distributed fund.

For the residential construction sector, the announcement arrives against the backdrop of a sustained slowdown in private rental starts, a cycle-wide condition that elevated borrowing costs have driven across Canadian urban markets.

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