Carney promises $2.7 billion to build rental homes in Toronto

OTTAWA — The federal government is investing at least $2.7 billion to build more than 18 housing projects across Toronto.

At a media event with Toronto Mayor Olivia Chow on Wednesday, Prime Minister Mark Carney said the federal government will be investing the funds over the next three years.

He said more than 5,600 new rental homes will be built with the money and that at least 1,800 of them will be affordable or rent-controlled.

The prime minister said construction will begin on roughly 4,500 new homes by the end of the year.

“For decades, the simple fact is Toronto didn’t build enough housing and too much of what was built was unaffordable for most Torontonians,” said Carney. “Prices driven up by development charges, by taxes, by rising construction costs, and then lack of availability of land. And the best way to meet the challenge that is created is to build more supply and to build it faster.”

Conservative MP and housing critic Scott Aitchison said in a statement Wednesday that Carney’s latest press conference is “just another repackaging of projects already announced or already under construction, and will do nothing to build the millions of homes needed to restore the promise of homeownership for future generations.”

Carney was set to tour a public transit site in Toronto with Ontario Premier Doug Ford later Wednesday.

The federal government earlier this month rejected a proposal to expand Toronto’s city airport to allow jets to land and take off. That led Ford’s government to reconsider its support for Alto, the federal government’s proposed high-speed rail project.

While speaking at the event Wednesday, the prime minister noted that his TelePrompTer had stopped working.

“Unlike a certain world leader, I do not view this as a conspiracy,” he said to general laughter.

Chow said Wednesday that Toronto needs housing “right now.”

“We’re moving with urgency because people running out of rent money at the end of the month cannot wait,” she said.

This report by The Canadian Press was first published Aug. 5, 2026.

— With files from Liam Casey in Toronto

Catherine Morrison, The Canadian Press