Ontario Allocates Nearly $16.7 Million to Kitchener and Waterloo as Housing Development Accelerates

The Ontario government has awarded a combined total of nearly $16.7 million to the cities of Kitchener and Waterloo through the second round of the Building Faster Fund, a program designed to reward municipalities making significant progress toward provincially designated housing targets. In 2024, the two cities broke ground on nearly 5,000 new homes, reflecting a strong push to meet and exceed growth objectives.

Kitchener received $10.3 million for achieving 105% of its provincial housing target, completing 3,067 units, while Waterloo secured $6.4 million for exceeding its target by 29%, with 1,722 new units underway. These achievements place both municipalities among the leading communities in Ontario for accelerating housing delivery, providing a strong foundation for broader regional development.

The Building Faster Fund, announced in 2023 as a three-year, $1.2 billion program, incentivizes municipalities to streamline approval processes and speed up housing construction. Funding is allocated based on progress toward annual housing targets, with additional rewards for communities exceeding their goals. This approach ensures that municipalities with a demonstrated record of delivery can expand infrastructure and housing at a faster pace.

In addition to the Building Faster Fund, the province has committed record funding for housing-enabling infrastructure through the $4 billion Municipal Housing Infrastructure Program (MHIP). Waterloo alone received $11.9 million through MHIP to facilitate nearly 5,000 new homes, while the broader Region of Waterloo saw $19.5 million allocated to support over 14,000 units. These investments are complemented by legislative measures aimed at streamlining development processes and reducing costs, such as the Protect Ontario by Building Faster and Smarter Act, 2025.

Ontario’s housing market has shown strong activity this year, with rental starts from January to July reaching 12,175 units, a 21% increase compared with the same period in 2024, reaching the highest level on record for this time of year. The extension of spending deadlines for Building Faster Fund allocations through 2028 further provides municipalities with flexibility to plan and execute projects that meet the growing needs of their communities.

For Kitchener and Waterloo, these funds represent not only recognition of past achievement but also an opportunity to sustain growth and ensure that new housing and supporting infrastructure keep pace with the region’s expanding population. With continued provincial support and local leadership driving progress, the momentum in both cities is poised to accelerate further, shaping the future of housing in Ontario’s technology and innovation corridor.