Housing costs, funding challenges addressed in City’s new plan
Toronto has unveiled a 10-year plan designed to address the city’s ongoing housing crisis and other economic challenges.
The plan, titled “Sidewalks to Skylines: A 10-Year Action Plan For Toronto’s Economy (2025-2035),” outlines strategies to accelerate affordable housing construction, improve public safety, reduce inequality, and boost the city’s overall economy.
Presented by Mayor Olivia Chow, the plan was developed after consulting with over 1,000 community members, businesses, and organizations.
It is also a direct response to the growing affordability gap that has made homeownership increasingly difficult for many residents. The report noted that home prices have surged by 20% since 2019, while income growth has been stagnant.
Building more affordable homes, faster
One of the most urgent issues Toronto faces is the rising cost of housing. According to the report, home prices have soared by 20% since 2019, while the median annual income has only grown by a mere 0.4%. This growing wealth divide is pushing many residents out of the housing market and driving some to leave the city entirely.
To combat this, the City of Toronto has committed to advancing its HousingTO Action Plan, with the goal of constructing 285,000 new homes by 2031. This includes 6,500 rent-geared-to-income (RGI) units, 41,000 affordable rental units, and 17,500 rent-controlled units.
“Too many residents are burdened by the high cost of housing,” the report read. “These costs are driving people to leave Toronto.”
The city plans to incentivize affordable home development and increase density in areas close to major transit stations. The initiative aims to speed up housing construction and meet the growing demand for affordable homes.
Another issue is the rising vacancy rates in older office buildings, which currently sit at around 18%. The plan proposes converting Class B and C office spaces into mixed-use or adaptive spaces to revitalize these areas and reduce vacancy rates to a target of 7.5% by 2034.
The action plan also focuses on fostering economic development for Indigenous, Black, and equity-deserving communities, promoting green infrastructure through the TransformTO net-zero strategy, and supporting small businesses by advocating for commercial rent control.
Securing long-term funding
Another key objective of the 10-year plan is to secure a new long-term intergovernmental funding agreement.
The current funding model, which requires the city to frequently seek financial support from the provincial and federal governments, “is inadequate to provide long-term, stable support for growth,” the report said.
The plan proposes a public campaign to negotiate a reliable and consistent funding agreement with Ontario and Canada, ensuring that critical housing and infrastructure projects receive sustained financial backing.
Recent examples of successful intergovernmental collaboration include Ontario’s $73 million investment in the Gardiner Expressway rehabilitation project, which allowed the city to reduce the construction timeline by a year. This investment was part of a new deal between Mayor Chow and Ontario Premier Doug Ford to help achieve long-term financial sustainability for the city.
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The report also underscores Toronto’s role in the national economy, noting that the city accounts for 20% of Canada’s total economic output and 53% of Ontario’s economy.
“Toronto’s economic prosperity is crucial not only for the city but also for the broader national economy,” the report stated.
With the plan now laid out, the recommendations in the report will be reviewed by the Economic and Community Development Committee later this month before being presented to City Council in November.
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