London, Ontario has received an $11.2 million boost from the provincial government for meeting housing targets, as the province shifts its strategy to address the ongoing affordability crisis. The funding was announced by Provincial Housing Minister Rob Flack, who highlighted the city's progress in building new homes and streamlining approvals.
Provincial Funding Tied to Housing Targets
The $11.2 million is part of Ontario's Building Faster Fund, which rewards municipalities that meet or exceed their housing targets. London was one of several cities to qualify, having achieved a significant increase in housing starts over the past year. Minister Flack emphasized that the funding is intended to support infrastructure and accelerate future development.
“London has stepped up to the challenge, and this funding recognizes their efforts,” Flack said. “We need every municipality to do their part to get more homes built faster.”
Shift in Provincial Housing Strategy
The announcement comes as Ontario adjusts its approach to housing policy, moving from broad incentives to more targeted funding for municipalities that demonstrate results. The province has set a goal of building 1.5 million homes by 2031, but critics argue that current rates are insufficient. London's success in meeting targets is seen as a model for other cities.
According to the Ontario government, London has issued permits for over 3,000 new units in the past year, a 20% increase from the previous year. The city has also implemented zoning reforms to allow more density near transit corridors.
Impact on Affordability
The funding is expected to help London address its housing affordability crisis, where average home prices have risen by 30% over the past five years. City officials plan to use the money for affordable housing projects and infrastructure upgrades. Mayor Josh Morgan called the funding “a critical step” but noted that more work is needed.
“This investment will help us build the homes Londoners need, but we must continue to push for more federal and provincial support,” Morgan said.
The province's shift in strategy reflects a broader trend across Canada, where governments are tying funding to performance metrics in an effort to speed up housing construction. However, some housing advocates warn that focusing only on numbers may overlook the need for deeply affordable units.
