Major Federal & Provincial Investments Set to Transform Construction Industry – Key Updates

Toronto, ON – June 28, 2026

Here are the latest developments in Canada’s housing and infrastructure landscape, highlighting how these changes are impacting the construction sector and outlining the coordinated actions being taken by all levels of government. These updates present significant opportunities and new directions for the construction industry nationwide.

National News: Build Canada Homes Act Becomes Law 

• Build Canada Homes Act has received Royal Assent, officially establishing Build Canada Homes as a Crown corporation. This move gives the agency greater operational flexibility, new financial tools, and the authority to scale up affordable housing delivery across Canada.
• Since its launch, Build Canada Homes has advanced six major projects, with over 11,000 new homes underway or nearing construction.
• The transition to Crown corporation status will accelerate housing supply, improve affordability, and enable more partnerships with provinces, municipalities, Indigenous partners, and the private sector.

Impact:

• Expect streamlined project approvals, increased federal land use for housing, and more opportunities for industry collaboration on large-scale builds.

Regional Highlights

British Columbia

• Historic $5 Billion Federal-Provincial Partnership: Over the next 10 years, Canada and B.C. are investing more than $5 billion in local infrastructure, including $3.2 billion to lower development charges for multi-unit housing by up to 50% in priority communities. This could save builders up to $40,000 per unit.
• Condo Conversion Initiative: More than 2,200 vacant condo units will be converted into affordable homes through innovative financing tools, creating new opportunities for construction and renovation firms.
• Major Infrastructure Projects: Investments include new transit (e.g., Surrey-Langley SkyTrain extension), health facilities, and community infrastructure in regions like Tumbler Ridge.

Greater Toronto Area (GTA)

• $1.5 Billion for Toronto: The federal and Ontario governments are providing $1.5 billion to Toronto, enabling the city to reduce development charges by 40–60%. This is projected to support the construction of 44,000 new homes and save builders $1.95 billion in total.
• Purpose-Built Rental Incentives: Toronto is launching new incentives for purpose-built rental housing, including indefinite deferral of development charges for projects with at least 20% affordable units.
• Infrastructure Upgrades: Funding will support transit, water, and road projects essential for unlocking new housing supply.

How All Levels of Government Are Assisting

Federal:

• Launching and scaling Build Canada Homes for affordable housing.
• Investing through the Build Communities Strong Fund ($51 billion over 10 years) for infrastructure that supports housing, health, and transit.
• Removing GST/HST on new homes for first-time buyers and supporting development charge reductions.

Provincial:

• Matching federal investments in infrastructure and housing.
• Partnering on innovative programs like condo conversions and rent-to-own models.
• Streamlining regulations and supporting local governments with funding and policy tools.

Municipal:

• Reducing development charges and fast-tracking approvals.
• Launching local incentives for affordable and rental housing.
• Collaborating on infrastructure projects that enable new housing supply.

Industry Implications

Increased Project Volume: Significant new funding and regulatory changes will drive more housing starts and infrastructure projects, especially in B.C. and the Greater Toronto Area.

Cost Reductions: Lower development charges and tax relief measures will improve project viability and margins.

New Market Segments: Condo conversions and rent-to-own programs create opportunities for renovation, retrofitting, and new construction partnerships.

Focus on Affordability and Innovation: Governments are prioritizing modern construction methods, sustainability, and mixed-income communities, encouraging industry adoption of new technologies and practices.

How GTA Strategies Can Help

GTA Strategies is ready to support your organization in navigating these changes and maximizing new opportunities.

The construction industry stands at the forefront of Canada’s housing and infrastructure transformation. With new legislation, major investments, and cross-government collaboration, now is the time to position your business for growth and leadership in this evolving landscape.

For tailored advice or to discuss how GTA Strategies can support your next project, please contact us directly. at info@gtastrategies.com or by phone at (888) 241 9948 ext 1.