The Government of Canada has announced a C$2.7 billion investment to support the construction of more than 5,600 rental homes across Toronto over the next three years, addressing growing housing affordability challenges in the country's largest city.

The funding package will support over 18 residential developments, with around 1,800 homes designated as affordable, supportive or rent-controlled housing, providing greater access for low- and middle-income residents.

Federal officials said the initiative is part of a broader strategy to increase Canada's housing supply, improve affordability and encourage long-term urban development. The investment is expected to help meet rising demand for rental accommodation while supporting sustainable community growth.

Housing experts welcomed the announcement, noting that expanding rental inventory is an important step toward easing pressure in one of North America's most competitive housing markets. The construction program is also expected to create jobs across Canada's building, engineering and infrastructure sectors.

The announcement comes as governments continue introducing measures to improve housing accessibility, strengthen urban infrastructure and respond to increasing population growth across major Canadian cities.