Wednesday, September 3, 2025
The Ontario government is investing nearly $16.7 million in Kitchener and Waterloo to help the municipalities expand housing and upgrade critical infrastructure, including water and wastewater systems needed to support growth.
The funding, announced September 2 through the province’s Building Faster Fund, rewards municipalities that achieve at least 80 per cent of their provincially assigned housing targets. The funding will support housing-enabling infrastructure, which includes drinking water, wastewater, stormwater and other services that must be in place before new homes can be built.
Kitchener will receive $10.3 million for starting construction on 3,067 new units in 2024, surpassing its provincial target by 150. Waterloo will receive $6.4 million after breaking ground on 1,722 homes, 29 per cent above its target. Together, the two cities accounted for nearly 5,000 housing starts last year.
“We’re working closely with Mayor Vrbanovic, Mayor McCabe and with local leadership in municipalities across Ontario to get more homes built faster,” said Premier Doug Ford. “Today’s investment is just the latest step we are taking to protect our workers and communities by supporting continued growth in Kitchener, Waterloo and across Ontario.”
The province says the funding is part of a broader push to link housing targets with infrastructure expansion. The $1.2 billion Building Faster Fund, launched in 2023, is paired with the $4 billion Municipal Housing Infrastructure Program (MHIP), which directs money specifically to water, wastewater and other servicing upgrades.
That includes $11.9 million already allocated to Waterloo to prepare land and utilities for nearly 5,000 new homes, and $19.5 million across the Region of Waterloo for infrastructure tied to more than 14,000 homes.
“Our government is continuing to work with local government partners in Waterloo Region to get shovels in the ground to build more housing built faster. Today’s investment of over $16 million combined in Kitchener and Waterloo is helping to bring the dream of homeownership back within reach for families in Waterloo Region,” said Mike Harris, Member of Provincial Parliament for Kitchener—Conestoga.
From January to July 2025, Ontario recorded more than 12,000 rental housing starts — the highest level on record for that period. The province has also extended the deadline for municipalities to use Building Faster Fund money to 2028, giving them more time to plan and deliver infrastructure projects alongside housing growth.
