Toronto’s Port Lands is to receive $1.185 billion of funding for development of a new downtown neighbourhood.

The federal, provincial and municipal governments, together with Waterfront Toronto, will contribute to the creation of the new mixed-use project which will help ease tight supply of homes in the city.

“Canada’s waterfronts are a resource to be enjoyed by all Canadians, today and tomorrow,” said Prime Minister Justin Trudeau. “This project will help residents of Canada’s largest city adapt to the impacts of a changing climate while spurring local economic growth. With local and provincial partners, we are taking action today to protect our environment and leave a cleaner, more prosperous economy for generations to come.”

The funding includes $384 million from the federal government with $400 million each from the Ontario government and City of Toronto. It will be used to create the new development and ensure protection from flooding, which will take around 7 years.

It has been welcomed by the CEO of the Ontario Real Estate Association Tim Hudak.

“We commend all three levels of government for coming together and addressing one of the biggest obstacles facing today’s home buyers – a lack of housing supply,” Mr Hudak said. “It’s encouraging to see home affordability and housing supply being taken seriously, and actual projects that will put more homes on the market underway.”

He said that using infrastructure spending to tackle housing issues is a positive move but added that there is still more that governments need to do.

“We would also like to see building approval processes sped up and more of the ‘missing middle’ type homes being built like townhouses, stacked flats or mid-rise buildings,” he said.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate


More market watch: