The Ontario government is making a significant move to expand affordable student housing in downtown Toronto, committing approximately $83 million toward a new multi-phase residence development at Toronto Metropolitan University (TMU). The investment, delivered through the province’s Building Ontario Fund (BOF), aims to address soaring rental costs in Canada’s most expensive housing market while strengthening the province’s postsecondary infrastructure.
Announced Thursday by the Ministry of Finance, the funding will support the first phase of a major redevelopment at 100 Bond Street, where a new 21-storey residence tower is set to rise. The project marks the first housing investment under the BOF banner and is positioned as part of Ontario’s broader efforts to build a more resilient, competitive and self-reliant provincial economy.
“Amid global uncertainty, our government is protecting Ontario’s future by building housing that meets the unique needs of our growing province,” said Peter Bethlenfalvy, Minister of Finance. “This investment through the Building Ontario Fund will make student housing in Toronto more affordable, revitalize the downtown core and help ensure that Ontario remains one of the best places in the world to study, work and live.”
When complete, the Bond Street residence will add nearly 1,400 beds — more than doubling TMU’s existing on-campus housing capacity. The Ministry said the new units will be priced well below Toronto’s average rent levels, offering more accessible options for students who have struggled with vacancy shortages and escalating housing costs.
“In the face of economic uncertainty, our government remains laser-focused on bolstering student success in Ontario,” said Nolan Quinn, Minister of Colleges, Universities, Research Excellence and Security. “Through this investment, our government is expanding access to affordable student housing so more students at Toronto Metropolitan University can remain focused on learning the skills they need to thrive in their future careers.”
TMU’s downtown location places students in a highly competitive housing market, where limited affordable options have increasingly pushed demand for university-owned residences. The new development is being delivered in partnership with Cedar Podium Investment Management, and pre-construction work is expected to begin in late 2025.
The Bond Street project represents the first phase of what is anticipated to be a roughly $200-million investment through the BOF to expand TMU housing. The fund itself is designed to help close financing gaps for critical infrastructure projects by working with institutional investors and Indigenous partners, with a focus on six priority areas: energy, affordable housing, long-term care, transportation, municipal and community infrastructure, and critical minerals.
“This development represents a unique partnership that brings together a visionary university and an experienced developer to address the urgent need for more reasonably priced student housing in one of Canada’s most expensive markets. This is exactly the kind of bold, catalytic investment that we were created to enable,” said Michael Fedchyshyn, CEO of the Building Ontario Fund.
University leaders emphasized the project’s importance not only for affordability but for the student experience.
“This new residence not only increases on-campus housing options at TMU, it also reflects the university’s commitment to student success. Doubling the space for accommodations ensures that students have more options to positively influence their academic performance and be part of a thriving campus community. We are grateful to our partners, Cedar Podium and the Ontario government, for their collaboration in making this project possible and helping develop a central part of Toronto’s downtown core,” said Mohamed Lachemi, President and Vice-Chancellor of Toronto Metropolitan University.
Cedar Podium, which is overseeing development of the new residence, called the project a model for purpose-built student housing in urban centres.
“Cedar Podium is proud to collaborate with Toronto Metropolitan University and the Ontario government in delivering sustainable, high-quality infrastructure that supports the university’s long-term vision for growth and student success. The Bond Street Residence reflects our shared commitment to developing world-class, purpose-built accommodation that enhances accessibility, affordability, and the overall campus experience. This project underscores our dedication to building enduring partnerships and creating lasting value for Ontario’s post-secondary communities,” said Bernard Luttmer, CEO of Cedar Podium.
The province has increasingly encouraged municipalities and publicly funded postsecondary institutions to collaborate on student housing solutions. Last year, Ontario updated its Provincial Planning Statement to identify land around such institutions as “strategic growth areas,” helping streamline approvals for new residential development tailored to student needs.
With persistent housing pressures and the continued influx of domestic and international students, officials say the Bond Street project marks a significant milestone in addressing supply shortages while strengthening Toronto’s downtown core. The province expects the investment to support long-term economic resilience and help keep Ontario competitive as a global destination for higher education.