Maple News reports that the Canadian federal government has pledged $1.2 billion to accelerate the construction of new rental housing in Toronto, a major move aimed at addressing the country’s ongoing housing affordability crisis. The announcement, made on November 14 by Deputy Prime Minister and Minister of Finance Chrystia Freeland and Minister of Justice Arif Virani, confirms that the funding will support seven major developments that will create 2,644 new rental homes in Canada’s largest city.
The investment will be delivered through the Rental Construction Financing Initiative (RCFI), a program that provides fully repayable low-interest loans to help build purpose-built rental housing across the country. This initiative is part of Canada’s broader National Housing Strategy, which aims to increase supply, improve affordability, and ensure secure housing for all Canadians.
According to Maple News, the RCFI is projected to result in the development of more than 71,000 rental units nationwide by 2027–28. Increasing the rental housing supply is seen as a key measure to improve access to affordable living, especially in high-demand urban centres like Toronto, which is the primary landing point for newcomers to Canada.
Ontario, and particularly Toronto, continues to attract the highest share of immigrants in the country. With population growth driven largely by immigration, demand for housing—especially affordable rental options—has surged. Initiatives like this one are crucial for maintaining livability and supporting the integration of new Canadians.
This recent announcement builds on other housing-focused policy measures taken at both the federal and provincial levels. Earlier this month, Ontario revealed it would eliminate the provincial portion of the Harmonized Sales Tax (HST) on newly built purpose-built rental homes such as apartment buildings, student housing, and senior residences. This incentive is aimed at encouraging more long-term rental developments across the province.
Taken together, these actions reflect a growing recognition of the structural challenges in Canada’s housing market. Maple News notes that coordinated efforts between all levels of government are essential to provide sustainable, affordable housing options for both current residents and future immigrants.
The Canadian government continues to signal that solving the housing crisis is tied not only to affordability but also to economic resilience and population growth. Investments in rental construction are seen as part of the long-term solution to building stronger communities nationwide.