Waterloo Region — The Ontario government is directing nearly $16.7 million to Kitchener and Waterloo after both municipalities surpassed their provincial housing targets, the province announced Tuesday.
The funding comes through the second round of the Building Faster Fund, a $1.2-billion program that rewards municipalities meeting at least 80 per cent of their designated housing targets. Both Kitchener and Waterloo exceeded expectations in 2024, collectively breaking ground on almost 5,000 new homes.
Incentives for Hitting Targets
Premier Doug Ford said the investment is part of his government’s broader push to expand housing supply across Ontario while supporting local economies and infrastructure.
“We’re working closely with Mayor Vrbanovic, Mayor McCabe and with local leadership in municipalities across Ontario to get more homes built faster,” Ford said. “Today’s investment is just the latest step we are taking to protect our workers and communities by supporting continued growth in Kitchener, Waterloo and across Ontario.”
Kitchener received $10.3 million after breaking ground on 3,067 new housing units, representing 105 per cent of its provincial target of 2,917. Waterloo was awarded $6.4 million for launching construction on 1,722 units, well above its 1,333-unit target at 129 per cent achievement.
The Building Faster Fund was introduced in August 2023 as a three-year initiative to encourage municipalities to speed up approvals and enable faster housing construction. Funding is earmarked for housing-enabling and community infrastructure projects that support growth and accommodate population increases.
Complementary Investments
In addition to the Building Faster Fund, the province has committed record levels of support for housing-enabling infrastructure through the $4-billion Municipal Housing Infrastructure Program (MHIP). Under MHIP, Waterloo has received $11.9 million to prepare for nearly 5,000 new homes, while another $19.5 million has been invested across the Region of Waterloo to enable construction of more than 14,000 new homes.
Rob Flack, Minister of Municipal Affairs and Housing, said the funding demonstrates the government’s commitment to backing municipalities that deliver results.
“I applaud Mayor Vrbanovic, Mayor McCabe and those mayors and councils who are taking bold action in their communities to get shovels in the ground faster,” Flack said. “Our government is making historic infrastructure investments to equip municipalities with every tool in our toolbox to build more homes and to keep the dream of homeownership alive for Ontario families.”
The province is also pursuing legislative reforms through the Protect Ontario by Building Faster and Smarter Act, 2025. The legislation aims to streamline development approvals, reduce costs, and accelerate timelines for housing and infrastructure projects in partnership with municipalities.
Local Leaders Respond
Local mayors and provincial representatives hailed the announcement as both recognition of progress and a critical resource for future growth.
“Kitchener is proud to once again be recognized by Ontario government for our leadership in addressing the housing crisis,” said Berry Vrbanovic, Mayor of Kitchener. “Receiving funding through the Building Faster Fund for the second year in a row reflects our council, staff and community’s commitment to getting more housing built. Since the program’s inception, and the introduction of the municipal housing pledge, Kitchener has consistently demonstrated that with strong partnerships and bold action, we can accelerate housing delivery and build a city where, together, we take care of the world around us and each other.”
Waterloo’s mayor emphasized the city’s collaborative approach in surpassing its housing target.
“I am pleased that Waterloo not only met its housing target, we exceeded it,” said Mayor Dorothy McCabe. “We will continue to work collaboratively with developers, housing advocates, residents and city staff to build a future-ready community for all. We appreciate the infrastructure funding support from the Ontario government through the Building Faster Fund. This funding will help us continue our momentum, accelerate housing starts and keep Waterloo moving forward.”
Local MPPs also underscored the regional significance of the investment.
“Our government is continuing to work with local government partners in Waterloo Region to get shovels in the ground to build more housing built faster,” said Mike Harris, MPP for Kitchener—Conestoga. “Today’s investment of over $16 million combined in Kitchener and Waterloo is helping to bring the dream of homeownership back within reach for families in Waterloo Region.”
Jess Dixon, MPP for Kitchener South—Hespeler, echoed that view: “Congratulations to Kitchener and Waterloo on securing Building Faster funding. It’s proof that when municipalities step up, the province is right there to back them. I’m proud to support and recognize Mayor Vrbanovic and Kitchener city council as well as Mayor McCabe and Waterloo city council for their leadership and continued momentum on getting homes built faster across our region.”
Looking Ahead
Ontario continues to see rising demand for housing, particularly in fast-growing urban centres. Between January and July 2025, the province recorded 12,175 rental housing starts — a 21 per cent increase over the same period in 2024, marking the highest level on record for that timeframe.
To accommodate growth, the government has extended the deadline for municipalities to use Building Faster Fund awards until 2028, giving local councils more flexibility to plan and invest in long-term infrastructure projects.
By rewarding municipalities that surpass their housing targets, the province aims to sustain momentum in housing development and ease supply pressures across Ontario’s most dynamic regions.
