What exactly is Toronto’s $2.7 billion rental housing announcement?
On August 5, 2026, Prime Minister Mark Carney and Toronto Mayor Olivia Chow announced that the federal government, in partnership with the City of Toronto, is putting up to $2.7 billion toward unlocking 18 rental housing projects that had already cleared planning and permitting but stalled for lack of financing. Together, the projects are expected to deliver more than 5,600 rental homes, including a mix of affordable, supportive, rent-geared-to-income, and rent-controlled units alongside market-rate rentals. Not all of those homes will be protected by Ontario’s rent-increase guideline, and knowing which is which matters for anyone searching for a home in Toronto over the next few years.
The federal government is investing up to $2.7 billion in Toronto rental housing over the next three years, according to the Prime Minister’s official announcement. The City of Toronto is contributing separately: its own news release puts that contribution at $703.7 million in funding and financial incentives, while the federal backgrounder breaks a portion of that down as public land contributed at nominal value plus more than $530 million in direct capital funding, including property tax exemptions of up to 99 years. Between the two, 18 projects are expected to deliver more than 5,600 rental homes, with construction underway on more than 4,500 of them before the end of 2026.
Who announced it, when, and why
Carney and Chow made the announcement together, alongside federal Housing and Infrastructure Minister Gregor Robertson. All 18 projects had already been planned, permitted, and approved but lacked the financing to break ground, which is the specific gap this funding is meant to close.
How the money is split: Build Canada Homes vs. the Apartment Construction Loan Program
The funding runs through two federal channels. Build Canada Homes, a non-market housing agency, is providing more than $310 million to nine projects on city-owned land, delivering 1,885 rental homes through partnerships with public agencies, non-profits, and Indigenous housing providers. The Canada Mortgage and Housing Corporation’s Apartment Construction Loan Program is providing more than $1.8 billion in low-cost financing to nine private-sector, purpose-built rental projects, delivering 3,720 rental homes, with an additional up to $600 million in financing capacity reserved for future Toronto projects that meet program requirements.
Which projects and neighbourhoods are included
Unlike most housing funding announcements, this one comes with a full, address-level project list published in the federal government’s own backgrounder. Here are the nine Build Canada Homes projects on city-owned land:
| Project | Total units | Affordable or supportive units | Notes |
| 805 Wellington Building A | 81 | 81 | Supportive housing with Homes First, using volumetric modular construction |
| 15 Denison Avenue | 100 | 100 | Indigenous-led supportive housing development |
| 150 Queen’s Wharf Road | 268 | 84 | Mixed-income redevelopment led by Toronto Community Housing Corporation |
| 405 Sherbourne Street | 301 | 100 | Affordable housing on a repurposed city parking lot |
| 1113-1125 Dundas Street West | 74 | 17 | City of Toronto mass timber, low-carbon pilot project |
| 158 Borough Drive | 425 | 118 | Largest project in the portfolio; transit-oriented, next to Scarborough Civic Centre |
| Bloor-Islington | 301 | 78 | Transit-oriented, integrated with the future Islington TTC station |
| C1 Bayside | 160 | 50 | Waterfront development |
| Parkdale Hub | 175 | 111 | Community hub led by the Parkdale Neighbourhood Land Trust |
On the market-rate side, the nine Apartment Construction Loan Program projects range from two large downtown towers at 49 Ontario Street (more than 1,200 homes combined) to the redevelopment of the former Toronto Coach Terminal at 130 Elizabeth Street and 610 Bay Street, which will also include a non-patient organ-preparation facility developed with the University Health Network and a paramedics hub. At the smaller end, all 50 units at 1552 Weston Road carry a 40-year affordability requirement, with 20 units receiving deeper affordability through a city rent supplement.
Will the new Toronto rental units actually be rent-controlled?
It depends entirely on which project, and even which unit within a project, you’re looking at. This announcement isn’t one homogeneous pool of housing: it explicitly includes affordable, supportive, rent-geared-to-income, and rent-controlled homes alongside plain market-rate rentals, according to both the federal backgrounder and the city’s release.
How Ontario’s rent control exemption applies to new builds
Separately from this announcement’s own affordability terms, Ontario’s Residential Tenancies Act generally exempts any building first occupied for residential purposes after November 15, 2018, from the province’s annual rent-increase guideline. Since nearly everything in this portfolio is newly built, that exemption is likely to apply to many of the units once they’re occupied, on top of whatever affordability terms a specific project agreement sets. A landlord in an exempt building must still give written notice using the proper form at least 90 days before an increase and can raise rent no more than once every 12 months.
What “affordable,” “rent-controlled,” and “market” mean in this specific announcement
Of the 1,885 Build Canada Homes units, 739 are counted as affordable or supportive in the project-by-project table, delivered by non-profit, public, and Indigenous operators. The remaining roughly 1,146 units in that same non-market portfolio are described as mixed-income and long-term rent-controlled homes, meaning they’re still operated outside the private market even though they aren’t tagged specifically as affordable. Of the 3,720 Apartment Construction Loan Program units, which are privately developed and rented at market rates, 1,079 are affordable homes with their own program terms; the remaining roughly 2,641 are conventional market-rate rentals.
| Funding channel | Total homes | Affordable or supportive homes | Who operates them |
| Build Canada Homes (non-market) | 1,885 | 739 | Public agencies, non-profits, and Indigenous housing providers |
| Apartment Construction Loan Program (market) | 3,720 | 1,079 | Private developers |
What renters should actually check before assuming their rent is protected
Because this portfolio mixes program types, the safest approach for a renter is to ask directly rather than assume. Confirm a building’s first occupancy date, ask whether the specific unit is affordable, rent-controlled, or market-rate under its operating agreement, and keep any notice of increase you receive. If you believe a rent increase is improper, whether because a building doesn’t qualify for the new-build exemption it claims or the notice requirements weren’t followed, you can raise a dispute with Ontario’s Landlord and Tenant Board.
What does “affordable housing” actually mean in Toronto, in real dollars?
Toronto works with two different rent figures under the umbrella of affordable, and mixing them up is where most confusion starts.
Two different numbers: Average Market Rent vs. Official Plan affordable rent
The city’s 2026 Average Market Rent figures, published annually by the Canada Mortgage and Housing Corporation and used by the City of Toronto, describe typical market rent by unit type. The city’s Official Plan affordable rent levels, adopted by City Council in November 2023 as an income-based definition, are set lower: whichever is less, the Average Market Rent for that unit type, or 30% of before-tax monthly income for a defined range of renter households by unit size.
The 2026 figures side by side
| Unit type | 2026 Average Market Rent | 2026 Official Plan affordable rent |
| Studio/bachelor | $1,499 | $1,127 |
| One-bedroom | $1,763 | $1,426 |
| Two-bedroom | $2,055 | $2,055 |
| Three-bedroom | $2,361 | $2,351 |
How this compares to what renters are paying today
liv.rent’s August 2026 Ontario Rent Report put the average asking rent for an unfurnished one-bedroom in the City of Toronto at $1,947 that month, down 5.99% from $2,071 in August 2025. That figure sits above both the city’s Average Market Rent and its Official Plan affordable rent for a one-bedroom, which is the exact gap this announcement is aimed at closing over time.
How can Toronto renters access one of the new affordable units?
Because the affordable and supportive homes in this announcement are delivered by a mix of public agencies, non-profits, Indigenous housing providers, and private developers under separate program agreements, there is no single application portal that covers all 18 projects. Access runs through whichever organization operates a given building.
Who operates the affordable units, project by project
On the Build Canada Homes side, Toronto Community Housing Corporation leads 150 Queen’s Wharf Road and 405 Sherbourne Street, Homes First operates the supportive units at 805 Wellington Building A, and the Parkdale Neighbourhood Land Trust leads the Parkdale Hub redevelopment. On the Apartment Construction Loan Program side, 72 Perth Avenue’s 51 required affordable units will be managed by Woodgreen Community Housing, while 1552 Weston Road’s affordability terms run for 40 years under its housing agreement. As each provider finalizes its own application process, the city’s general channels, including random draws for affordable rental homes, are the best place to watch for openings.
Income eligibility, in dollars
For the city’s general affordable rental housing program, household income at initial occupancy is generally capped at four times the unit’s annualized rent. Applied to a unit renting at $1,500 a month, that works out to a household income limit of $72,000 a year. Specific projects and providers may apply their own eligibility rules on top of this general formula, so it’s worth confirming the exact terms with whichever organization operates the building you’re applying to.
Affordable units vs. Toronto’s separate RGI subsidized housing stream
It’s worth separating the affordable units in this announcement from Toronto’s rent-geared-to-income, or RGI, subsidized housing stream, which renters apply for through MyAccessToHousingTO and where rent is generally set at 30% of a household’s income before taxes. RGI housing typically involves a considerably longer wait than the affordable units in this announcement, so it helps to know which stream you’re actually applying to.
When will the 5,600 new Toronto rental homes actually be ready to move into?
Construction is targeted to begin on more than 4,500 of the 5,600 homes before the end of 2026, but a construction start is not a move-in date.
What a 2026 construction start actually means
The federal backgrounder gives one concrete marker: the Build Canada Homes portfolio is expected to reach substantial completion by March 2031. The Apartment Construction Loan Program portfolio doesn’t have a single published completion date, since it covers nine separately developed private projects, each moving through its own construction timeline.
Why these particular projects may move faster than a typical new proposal
All 18 projects had already cleared planning and permitting before this funding was announced, and were stalled specifically for lack of financing rather than approvals. Unlocking financing for already-approved projects, instead of starting the planning process from zero, is part of why the government expects faster delivery here than a brand-new proposal would see. Two projects are also using faster, lower-emission construction methods: volumetric modular at 805 Wellington Building A and mass timber at 1113-1125 Dundas Street West, methods the federal government says can cut construction waste and reduce emissions by up to 22%.
What renters can realistically plan around
With one confirmed target of March 2031 for the non-market portfolio and no single completion date for the market-rate portfolio, renters searching for a home today shouldn’t expect this announcement to meaningfully change what’s available in the next year or two. It’s a multi-year pipeline, not an immediate supply increase.
Is there legitimate criticism of the announcement that renters should understand?
Tenant advocates and opposition politicians have raised two distinct concerns since the announcement, and both are worth understanding on their own terms.
Tenant advocates: public money for private developers
Toronto Tenants Union co-chair Bruno Dobrusin criticized directing low-cost federal loans to private developers, calling it, in comments reported by CP24, “a bailout for the private developers who led us into this housing crisis.” His concern centres on the roughly 2,641 Apartment Construction Loan Program units that carry no specific affordability requirement.
The political critique: repackaged announcements
Conservative housing critic Scott Aitchison dismissed the announcement, as reported by Canadian Mortgage Professional, as “just another repackaging of projects already announced or already under construction.” The federal government’s position is that these projects had cleared approvals but were stalled by financing gaps, and that unblocking financing is itself the point of the intervention rather than a sign the projects aren’t genuinely new commitments.
What the province’s role, or absence, means
Frank Clayton, a senior research fellow at Toronto Metropolitan University, told NOW Toronto that the announcement is a positive step but that it remains unclear how many units will be within reach of lower-income renters, and noted it’s unusual for a housing initiative this size not to directly involve the province. Ontario remains responsible for the Residential Tenancies Act regardless of whether it took part in this specific announcement, so today’s tenant protections are unaffected by that absence.
What should Toronto renters do right now while the new supply is being built?
Because this supply is years away, it makes sense to focus on today’s market in the meantime. liv.rent’s August 2026 Ontario Rent Report found the average asking rent for an unfurnished one-bedroom in the City of Toronto was $1,947 that month, down 5.99% from $2,071 a year earlier, a shift worth keeping in mind while comparing current listings and asking rents.
If you already have a rent-controlled unit
Know your building’s first occupancy date and keep your lease and any rent-increase notices on file. Ontario’s 2026 guideline caps annual increases at 2.1% for covered units, and a landlord must give proper notice and wait a full 12 months between increases.
If you’re viewing a new-build listing
Ask for the building’s first occupancy date and whether the specific unit falls under an affordable, rent-controlled, or market program before signing. If the building is exempt from Ontario’s annual guideline, factor that into your budget for future years rather than assuming your first year’s rent is a reliable guide to your third year’s rent.
How liv.rent can help while you search
liv.rent’s listing alerts let renters set criteria such as location, price, housing type, bedroom count, and pet policy, then get notified as matching listings go live. Listings can also show whether a landlord has completed liv.rent’s ID verification, and the renter’s guide to using liv.rent walks through the rest of the process, from messaging a landlord to signing a lease.
This is general information, not legal advice. Renters and landlords with a specific dispute should contact Ontario’s Landlord and Tenant Board or a licensed paralegal for guidance on their situation.
What is Toronto's $2.7 billion rental housing announcement?
On August 5, 2026, Prime Minister Mark Carney and Toronto Mayor Olivia Chow announced up to $2.7 billion in federal funding and financing, plus $703.7 million in additional City of Toronto funding and incentives, aimed at unlocking 18 stalled rental projects and delivering more than 5,600 rental homes over three years.
Will the new Toronto rental homes be rent-controlled?
It varies by project. Of the 1,885 non-market Build Canada Homes units, 739 are affordable or supportive, with the remainder rent-controlled or mixed-income. Of the 3,720 market-rate Apartment Construction Loan Program units, 1,079 are affordable, with the rest conventional market rentals that will likely qualify for Ontario’s exemption from the annual rent-increase guideline once occupied, since they’re newly built.
What does "affordable housing" mean in dollar terms in Toronto?
Toronto uses two figures. The city’s 2026 Average Market Rent levels are $1,499 for a bachelor, $1,763 for a one-bedroom, $2,055 for a two-bedroom, and $2,361 for a three-bedroom. Its Official Plan affordable rent levels, which apply to new affordable units secured through the planning process, are $1,127, $1,426, $2,055, and $2,351 for the same unit types.
When will the 5,600 new Toronto rental homes be ready to move into?
Construction is targeted to begin on more than 4,500 of the 5,600 homes before the end of 2026. The Build Canada Homes portfolio is expected to reach substantial completion by March 2031; the privately developed Apartment Construction Loan Program projects don’t have a single published completion date.
Who can apply for the affordable units in the new Toronto housing projects?
Each project is operated by a different provider, including Toronto Community Housing Corporation, Homes First, the Parkdale Neighbourhood Land Trust, and private developers under program agreements. For the city’s general affordable rental program, household income at initial occupancy is generally capped at four times the unit’s annualized rent, for example $72,000 a year for a $1,500-a-month unit.
What is Ontario's 2026 rent increase guideline, and does it apply to new buildings?
Ontario’s 2026 rent-increase guideline is 2.1%. It generally applies only to units first occupied on or before November 15, 2018. Newer buildings, including most units in this announcement, are exempt from the guideline, though landlords must still give 90 days’ written notice and can raise rent no more than once every 12 months.
Is the Toronto housing announcement facing criticism?
Yes. Toronto Tenants Union co-chair Bruno Dobrusin criticized directing low-cost federal loans to private developers whose market-rate units carry no specific affordability requirement. Conservative housing critic Scott Aitchison called the deal a repackaging of already-approved projects. The federal government’s position is that these projects had approvals but were stalled by financing gaps.
Does this announcement affect renters outside Toronto?
The $2.7 billion package is specific to Toronto, but the federal programs behind it, the Apartment Construction Loan Program and Build Canada Homes, operate across Canada. Rent control rules and affordability definitions vary significantly by province, so renters elsewhere should check their own provincial rules rather than assume Ontario’s apply.
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