Canada’s Construction Industry: $8.7 Billion in Government Support, Tariffs, CUSMA & New Housing Opportunities

Toronto, ON – October 24, 2026

Canada’s construction industry faces significant challenges, but new government investments are creating opportunities for builders, developers, contractors, manufacturers, and suppliers nationwide.

U.S. tariffs, CUSMA uncertainty, rising construction costs, labour shortages, and municipal development charges continue to affect the industry. Meanwhile, federal, provincial, and municipal governments are introducing billions of dollars in housing, infrastructure, manufacturing, and business support initiatives.

Here are key developments your business should know.

$8.7 Billion Canada–Ontario Industrial Action Plan

On October 21, Canada and Ontario announced a major industrial support package, including:

• $5.22 billion in joint steel-sector support to strengthen Canadian manufacturing.
• Assistance for businesses affected by U.S. tariffs and trade disruptions.
• Greater emphasis on Canadian-made materials and domestic procurement.
• Infrastructure investments and measures to improve industrial competitiveness.

These initiatives could benefit construction suppliers, steel fabricators, manufacturers, and infrastructure-related businesses.

U.S. Tariffs and CUSMA — Continued Uncertainty

U.S. tariffs are affecting Canadian steel, aluminum, lumber, HVAC equipment, fasteners, and other construction materials.

The ongoing review of the Canada–United States–Mexico Agreement (CUSMA) adds uncertainty for companies importing or exporting construction products.

Importantly, CUSMA compliance does not automatically exempt every product from U.S. tariffs.

Construction businesses should review their tariff exposure, supply chains, purchasing arrangements, and eligibility for government assistance.

Build Canada Homes and CMHC — Major Housing Opportunities

The federal government’s Build Canada Homes initiative aims to accelerate affordable housing construction through partnerships with developers, municipalities, nonprofit organizations, and Indigenous communities.

Its priorities include Canadian-made construction materials, modular and prefabricated housing, public land development, and innovative building methods.

Meanwhile, Canada Mortgage and Housing Corporation (CMHC) continues to support residential construction through financing programs.

• $55-billion Apartment Construction Loan Program: Low-interest, repayable financing for eligible rental housing projects.
• $32 billion committed: Supporting more than 81,900 rental units as of June 2026.
• Toronto: A housing partnership involving more than 5,600 rental homes across 18 projects, supported by Build Canada Homes and CMHC financing.

These initiatives offer potential opportunities for developers, construction companies, building-material suppliers, and modular housing manufacturers.

Latest Regional Housing and Infrastructure Announcements

Ontario — $8.8 Billion in Housing Infrastructure

Canada and Ontario have established a joint $8.8-billion investment framework over 10 years to support housing-enabling infrastructure.

Recent announcements include:

• Barrie: Up to $129 million in infrastructure funding tied to a 50% reduction in residential development charges.
• Windsor and Tecumseh: Up to $84.4 million in infrastructure funding, with development charge reductions of 70% and 50%, respectively.
• Ottawa: Plans to reduce development charges by 54% over three years, subject to finalizing the agreement.
• New Home HST Relief: Savings of up to $130,000 on eligible new homes under the announced federal-provincial measures.

Ontario’s Development Charge Reduction Program is helping municipalities lower housing construction costs while investing in roads, water, wastewater, and other infrastructure. The current municipal application intake is closed, but the announced reductions still matter to developers.

Quebec — Student Housing Investment

The federal government announced more than $27 million in CMHC financing for 95 student rental housing units in Montréal.

Northern Ontario — Affordable Housing

A proposed 609-unit affordable housing initiative across 11 sites is seeking financing, with construction targeted for 2027.

Atlantic Canada — Infrastructure Expansion

Canada and New Brunswick are investing in municipal infrastructure, including improvements that could support up to 150 new housing units in Beaurivage.

British Columbia — Construction Innovation

Vancouver’s new single-staircase building framework is opening opportunities for smaller apartment developments on individual residential lots, potentially reducing construction costs.

Government Programs That May Assist Your Business

Depending on eligibility, construction-related businesses may benefit from:

• Tariff relief and liquidity financing for trade-affected companies.
• Manufacturing and productivity incentives for equipment, automation, and modernization.
• CMHC financing and housing partnerships for residential development.
• Workforce and apprenticeship programs for skilled trades and employee training.
• Municipal development charge reductions and housing infrastructure initiatives.
• Government procurement and Buy Canadian opportunities for materials, construction, and infrastructure projects.
• Business expansion assistance for new facilities, investment, and increased production.

Some programs provide grants, while others offer loans, tax relief, or other forms of support. Eligibility and availability vary.

How GTA Strategies Can Assist

GTA Strategies works across Canada, drawing on decades of experience and established relationships with federal, provincial, and municipal governments.

We assist construction companies, developers, manufacturers, and suppliers with:

• Government Grants & Funding: Identifying programs and preparing applications.
• Tariff Relief & Trade: Navigating government assistance and trade-related challenges.
• Government Relations: Representing business interests at all three levels of government.
• Land Development: Rezoning, municipal approvals, permits, and infrastructure coordination.
• Business Growth: Expansion incentives, investment opportunities, and government procurement.

Facing tariff pressures, planning a development, or seeking government assistance?

Contact GTA Strategies to schedule a no-obligation virtual meeting to discuss how we can help your business.

We look forward to hearing from you.