ETOBICOKE, ON – A major federal-provincial housing agreement took centre stage Monday as Doug Ford and Mark Carney unveiled an $8.8-billion plan aimed at accelerating homebuilding across Ontario—punctuated by a light-hearted exchange that drew laughter from the crowd.
Speaking at a construction site alongside Olivia Chow, Premier Ford jokingly asked whether taking a sip of the prime minister’s water might “turn him into a Liberal,” a remark that briefly shifted the tone before leaders refocused on the significance of the announcement.
The new agreement outlines a joint investment of $8.8 billion over the next decade, with both the federal and provincial governments contributing $4.4 billion each. The funding will support housing-enabling infrastructure and incentivize municipalities to cut development charges—fees that often add tens of thousands of dollars to the cost of new homes.
Prime Minister Carney emphasized that reducing these upfront costs will help improve affordability and create greater certainty for builders.
“This is going to lower up-front costs and create certainty for builders to create affordable homes for Ontarians to buy and rent,” Carney said, noting that development charge reductions could lower the cost of a typical two-bedroom apartment by approximately $40,000.
Premier Ford also highlighted complementary provincial measures, including a temporary removal of the 13 per cent Harmonized Sales Tax (HST) on new homes valued up to $1 million, a move expected to provide up to $130,000 in savings for eligible buyers and inject billions into the economy.
In addition to housing, the announcement included commitments to major transit expansion projects. Among them is a proposed waterfront east light-rail transit line connecting Union Station to Toronto’s Port Lands, expected to serve more than 150,000 residents and support tens of thousands of daily trips.
The plan also aligns with broader initiatives under the federal Build Canada Homes strategy, which aims to deliver nearly 10,000 new housing units through multiple partnerships, with construction on some projects set to begin in the coming months.
Industry groups, including the Residential Construction Council of Ontario, welcomed the announcement, citing reduced red tape and lower development charges as critical steps toward improving housing supply and affordability.
However, environmental advocates raised concerns that efforts to streamline regulations could weaken municipal green building standards, potentially increasing long-term costs for homeowners.
Despite differing perspectives, Monday’s announcement marked a rare moment of alignment between federal, provincial and municipal leaders, signalling a coordinated effort to address Ontario’s ongoing housing challenges while balancing affordability, infrastructure and economic growth.