Toronto — The Ontario government is partnering with the City of Toronto and Habitat for Humanity Greater Toronto Area (GTA) to build 33 modular homes in a new six-storey condominium at 355 Coxwell Avenue, marking a major step in the province’s effort to expand attainable housing and support innovative building methods across Ontario.
The project is part of Ontario’s New Deal with Toronto, which aims to unlock surplus municipal and provincial lands for housing construction, streamline permitting processes, and accelerate homebuilding in Canada’s largest city. The 355 Coxwell Avenue site was identified by Toronto as one of several surplus properties suited for modular home development — a model designed to deliver quality, affordable housing faster than traditional builds.
“Ontario is continuing to take action to build more homes faster and help people find a home that meets their needs and their budgets,” said Rob Flack, Minister of Municipal Affairs and Housing. “This innovative project will help drive forward our plans to support Ontario’s modular homebuilding industry and make use of surplus government lands to get more shovels in the ground.”
Affordable Homes for Working Families
Ontario is investing $10 million in the project, which will deliver 33 modular condominium units, including 22 family-sized homes. The homes will be built using modern prefabrication techniques that reduce construction time and costs while maintaining high standards of energy efficiency and design.
Home prices at 355 Coxwell Avenue will be set below market value to make them attainable for households with incomes between the 60th and 70th percentile in Toronto. Each home will be sold at fair market value, with a maximum purchaser contribution of $500,000 in 2025, indexed annually to inflation.
The project’s funding model combines municipal investment, provincial support, and non-profit administration to ensure long-term affordability. “Homes need to be more affordable,” said Olivia Chow, Mayor of Toronto. “That is why the City is investing more than $4.8 million to build 33 modular homes and keep expanding affordable housing across Toronto. This partnership with Habitat for Humanity and the province shows what we can achieve when we work together.”
A Blueprint for Collaborative Housing Development
Habitat for Humanity GTA, one of the province’s most established affordable housing organizations, will oversee the sales process, including application review, buyer eligibility, and affordability criteria. The organization’s long-standing model combines homeowner contributions with community support to create pathways to ownership for working families who may not otherwise qualify for conventional mortgages.
“This project serves as a blueprint for how multi-level government collaboration with non-profits and the private sector can create homes that bring lasting affordability for working families in this city,” said Ene Underwood, CEO of Habitat for Humanity Greater Toronto Area. “The parents, children, and future generations who will call this place home will thrive, living in quality housing close to schools, transit, parks and more. The surrounding community will be stronger, more diverse, and more equitable as a result — and that benefits us all.”
The modular condominium is expected to be a pilot for future developments of its kind. Lessons learned from construction and community integration will inform Ontario’s broader housing strategy, which emphasizes modular building as a practical solution to address both cost and supply challenges.
Construction Timeline and Economic Impact
Preparations for construction at the Coxwell Avenue site are already underway, with sales expected to begin in early 2026. The homes are projected to be ready for occupancy by mid-2027. Modular construction, unlike traditional methods, allows much of the building to be manufactured off-site, reducing delays due to weather and supply chain issues while creating skilled manufacturing and assembly jobs within Ontario.
The project also demonstrates how targeted government investments can stimulate housing supply and local economies simultaneously. The Ministry of Municipal Affairs and Housing emphasized that the initiative is one of many currently being developed under the province’s plan to build 1.5 million homes by 2031.
In addition to direct funding for the project, Ontario has allocated up to $1.2 billion in operating supports to Toronto over three years through the Ontario-Toronto New Deal, helping the city manage essential services and infrastructure pressures tied to rapid housing growth. Toronto has also received $181.2 million through the Building Faster Fund, which rewards municipalities that meet or exceed housing targets.
A Step Toward Sustainable and Inclusive Growth
Officials from all levels of government view the modular housing project as a model for scalable, sustainable, and community-focused development. By situating the homes close to schools, parks, and transit, planners aim to foster a vibrant and inclusive community that supports long-term growth in Toronto’s east end.
Ontario’s partnership with Toronto and Habitat for Humanity represents a new model of cooperative urban housing delivery, leveraging non-profit expertise and public investment to produce homes that are both affordable and attainable for middle-income earners.
“By supporting modular homebuilding and working with trusted partners like Habitat for Humanity, we’re keeping the dream of homeownership alive for more Ontarians,” said Flack.
As the province continues to tackle the housing crisis, the Coxwell Avenue project stands as an example of what can be achieved through collaboration, innovation, and a shared commitment to ensuring that more people can afford to live where they work and raise their families.
