City surpasses provincial housing target as Ontario pushes ahead with homebuilding strategy
KITCHENER, Ont. — The Ontario government has awarded more than $8 million to the City of Kitchener under the province’s Building Faster Fund after the municipality exceeded 85 per cent of its provincially assigned housing target in 2025.
The funding announcement, made Thursday by the Ministry of Municipal Affairs and Housing, will see Kitchener receive $8,013,600 through the third round of the program, which rewards municipalities that achieve at least 80 per cent of their annual housing goals.
Kitchener recorded 3,005 housing starts last year, positioning the city among Ontario municipalities making significant progress toward increasing housing supply amid ongoing affordability pressures.
Provincial officials said the funding is intended to support housing-enabling infrastructure and community projects while reinforcing broader economic growth objectives.
“Congratulations to the City of Kitchener for your efforts to get shovels in the ground,” said Rob Flack, Minister of Municipal Affairs and Housing. “In addition to the Building Faster Fund, our government continues to support municipalities in increasing their housing supply through measures like the expansion of the HST rebate and the recently announced Development Charge Reduction Program.”
Province links housing investments to economic growth
The Building Faster Fund was introduced in August 2023 as a three-year program valued at up to $1.2 billion. The initiative rewards municipalities that make measurable progress toward provincially mandated housing targets by providing additional financial support for infrastructure tied to residential development.
The province said the latest funding aligns with its broader strategy to accelerate home construction while reducing costs for builders and municipalities.
Ontario has recently introduced additional measures aimed at speeding up development approvals and lowering construction-related expenses, including the Building Homes and Improving Transportation Infrastructure Act, 2026 and the HST Relief Implementation Act (Residential Property Rebates), 2026.
The provincial government has also launched the Development Charge Reduction Program as part of the Canada-Ontario Partnership to Build. The initiative is expected to provide up to $8.8 billion over 10 years for infrastructure projects that support housing development.
Under the agreement, municipalities that reduce development charges and maintain those reductions will receive priority funding consideration.
Ontario also confirmed that the removal of the HST on new homes between April 1, 2026, and March 31, 2027, could save homebuyers up to $130,000 on the purchase price of a newly built home.
Kitchener recognized for sustained housing performance
Kitchener Mayor Berry Vrbanovic said the city’s latest funding allocation reflects years of coordinated work between municipal officials and the province to accelerate residential development.
“Kitchener is proud to be recognized by the Government of Ontario for the third year in a row, for our leadership in addressing the housing crisis and getting more homes built,” said Berry Vrbanovic, Mayor of Kitchener. “This investment, through the Building Faster Fund, reflects the strong commitment of Council, staff and our community to taking action, accelerating progress and delivering more housing for the residents of Kitchener. Since the program began, Kitchener has demonstrated that through strong collaboration with our provincial counterparts and a willingness to act, we can deliver housing faster. Together, we are building a city where people take care of each other and the world around us while contributing to a stronger Ontario.”
Provincial representatives for the Kitchener region also welcomed the funding announcement, emphasizing the importance of increasing housing supply across Waterloo Region.
“The City of Kitchener is taking action to build more homes and support a growing community. Our government is committed to working alongside municipalities by making housing-enabling investments and providing the tools they need to get more homes built faster. Together, we are helping create more housing opportunities for families across Ontario,” said Matthew Rae, Parliamentary Assistant to the Minister of Municipal Affairs and Housing.
Mike Harris, MPP for Kitchener–Conestoga, said the investment would help more residents enter the housing market.
“Our government is working closely with the City of Kitchener as they take action to build more homes, faster, in our community. This investment is yet another step we are taking to boost housing supply and help more Kitchener families achieve the dream of homeownership,” Harris said.
Jess Dixon, MPP for Kitchener South–Hespeler, said the city’s approach to housing approvals and municipal cooperation has helped it consistently meet provincial targets.
“Kitchener is once again setting the pace on getting homes built and I couldn’t be more thrilled to see their hard work and achievements being recognized in this way. Mayor Berry Vrbanovic and his team have forged a level of cooperation and customer service which has been key in continually meeting their housing goals,” Dixon said.
Ontario reports sharp increase in housing and rental starts
The province said Ontario recorded 20,423 total housing starts between January and April 2026, representing a 24.6 per cent increase compared with the same period in 2025.
Rental housing construction also saw significant growth, with 10,272 rental starts recorded during the first four months of the year — a 93.2 per cent increase year over year and the highest level on record for that period.
Ontario also announced municipalities will now have until 2028 to spend Building Faster Fund allocations, extending the previous deadline in an effort to provide greater flexibility for infrastructure planning and project delivery.