The federal government has announced an investment of $89 million into a new 16-storey development aimed at providing low-cost housing in the west end of Toronto.
Said project is expected to come as a major relief for middle-class families in a market environment characterized by consistently high residential costs, despite some slowdown in terms of sales.
“This is a major win for affordable housing in Etobicoke. This $89 million federal government commitment to our community will make a significant difference in providing a home and hearth for those worried that they can’t afford a roof over their heads,” according to Borys Wrzesnewskyj, Member of Parliament for Etobicoke Centre.
“By increasing access to affordable housing, we are building stronger and healthier communities in a difficult Toronto housing market.”
The development, which will be known as Terraces of Princess Gardens, is slated to provide affordable housing units for 259 middle-class families.
The government assured that most of the units will have rental rates “at or below 30% of median household income in the area.”
Read more: Amid sales slowdown, Toronto home prices are still growing
Over the past year, the volume of multi-family housing built in Canada’s hottest markets was much higher compared to any other residential asset type, according to a recent report by the Canada Mortgage and Housing Corporation.
In its data release earlier this month, the CMHC said that the nationwide housing starts trend was at 203,554 units in February 2019.
While Toronto saw lower condo apartment starts, “row and semi-detached home starts trended higher underlining their popularity among buyers looking for lower priced [housing],” the Crown corporation stated.
Demand for the asset class in the GTA is not decelerating any time soon, as “sales of new condominium apartment starts have been strong in 2017 and 2018 and these units will continue to break ground throughout this year at a varying pace.”