New Money Is Flowing Into Construction — Where Can Your Business Benefit?

Toronto, ON – September 12, 2026

The Canadian construction industry is entering a period of both major opportunity and serious cost pressure. Billions of dollars are being committed to housing, infrastructure and new construction, while U.S. tariffs and Canadian counter-tariffs are increasing the cost of materials, equipment and components.

If you are a builder, developer, contractor, construction supplier, manufacturer, engineering firm, trades company or related business, these changes could directly affect your costs, projects and access to government support.

The Big Housing Story: Canada Still Needs Millions Of Homes

CMHC is warning that Canada needs between 417,000 and 469,000 new homes every year through 2036 to restore affordability to pre-pandemic levels. Canada is currently on pace for only about 231,000 homes annually.

Toronto continues to face particularly weak ownership construction, while Edmonton is currently the only major Canadian market without a significant housing supply gap.

For builders and suppliers, the message is clear: governments need substantially more housing construction—but they also need to make projects financially viable.

Major New Local And Provincial Initiatives

Governments are increasingly using infrastructure funding and development-charge reductions to get projects moving.

Mississauga: Canada and Ontario have announced up to $401.4 million for housing-enabling infrastructure after the city committed to reducing residential development charges by 50%. Mississauga estimates the measures and infrastructure investment could help unlock 90,000 homes. 

Vaughan: Up to $697.2 million is being provided through the Development Charge Reduction Program after Vaughan committed to a 50% reduction in residential development charges, with qualifying projects potentially receiving complete development-charge relief during a specified construction window. 

Toronto: The city is receiving $1.5 billion through the Development Charge Reduction Program following commitments to reduce residential development charges by 40% to 60%. 

Ontario municipalities: Canada and Ontario have also announced a new $1-billion

infrastructure stream for municipalities that do not levy development charges, targeting roads, bridges, water and other infrastructure needed to unlock housing. Applications are expected to open October 29, 2026. 

Ontario is also receiving significant ongoing infrastructure investment through the new 

Build Communities Strong Fund, including $932 million in 2026–27 flowing to Ontario municipalities, Toronto and local infrastructure initiatives.  

Build Canada Homes Is Moving Money Into Projects

Build Canada Homes is increasingly moving from policy into specific partnerships.

In Alberta, BCH is providing up to $220 million, alongside more than $165 million from Alberta and approximately $238 million from other sources, to support at least 1,460 affordable homes and approximately $623 million in total investment.

In Manitoba, federal, provincial and municipal governments are backing 821 new homes, with the partnership expected to unlock more than $400 million in total housing investment.

The federal government is also emphasizing modular, factory-built, off-site and mass-timber construction. These technologies are increasingly being positioned as ways to shorten construction schedules, improve productivity and reduce costs.

The Other Side Of The Story: Tariffs Are Hitting Construction Inputs

Canada’s new counter-tariffs took effect September 8, 2026, with tariffs of 15%, 25% and 50% on $27.6 billion of U.S. imports.

Affected sectors include steel and aluminum products, appliances, plastics, electronics, pulp and paper and other manufactured goods.

The Canadian Home Builders’ Association has identified 155 tariff categories connected to residential construction and renovation, including products such as:

drywall, carpeting, steel fasteners and fittings, window and door hardware, HVAC equipment, heat pumps, wiring and appliances.

The concern is straightforward: higher material costs can make already-marginal projects uneconomic, delay construction and push housing prices higher.

What About CUSMA?

CUSMA remains in force and continues to provide important North American market access, but the 2026 Joint Review and ongoing U.S.-Canada sectoral tariff disputes have created substantial uncertainty, particularly around steel, aluminum, automobiles and softwood lumber. 

Construction companies should therefore be reviewing where their materials originate, tariff classifications, supplier contracts and whether alternative Canadian or non-U.S. sources are available.

Importantly, Canada also maintains a tariff-remission process where businesses can seek exceptional relief, including where required inputs cannot reasonably be sourced domestically or from non-U.S. suppliers. 

New Government Support For Tariff-Affected Businesses

Ottawa has announced a $7.5-billion package of new and expanded assistance for Canadian businesses and workers affected by U.S. tariffs. 

Of particular importance:

Regional Tariff Response Initiative — Expanded
Applications are now open in southern Ontario. Eligible businesses may access up to $3 million in non-repayable support, including up to $2 million for demonstrated liquidity needs. Funding can also support productivity improvements, capital investments, business pivots, supply-chain resilience and expansion into new markets.

Canada Strong Diversification Fund — $2 Billion
Designed to help businesses adjust to trade disruption, strengthen domestic capacity and diversify into new markets.

BDC Liquidity Support — $500 Million
Additional financing targeted at tariff-affected companies.

Rapid Response Supports — $3.5 Billion
Worker retention, retraining and employer supports designed to protect employment during the tariff disruption.

The expanded Regional Tariff Response Initiative alone has received an additional $1.5 billion, bringing total RDA-delivered tariff-response support to approximately $3.45 billion nationally. 

What Should Construction Businesses Be Doing Now?

Don’t look at tariffs, housing programs, and infrastructure announcements separately.

A construction company may simultaneously be facing higher imported-material costs while becoming eligible for tariff assistance, new municipal infrastructure work, housing construction opportunities, development-charge reductions, financing programs or government procurement opportunities.

The companies that move first will be better positioned to protect margins and participate in the next round of publicly supported construction.

How GTA Strategies Can Assist

GTA Strategies can review your company’s projects, tariff exposure and expansion plans and identify the federal, provincial and municipal programs that may apply. We can assist with funding applications, tariff-remission requests, government relations, municipal and provincial outreach, procurement opportunities and introductions to the appropriate government decision-makers. Rather than spending weeks trying to determine which programs apply, contact us and we will review the opportunities with you.

If you are planning a construction project, expanding your operations, purchasing equipment, facing tariff pressures or looking for government funding, contact GTA Strategies now.