City of Toronto Breaks Ground on Canada’s Largest Co-op Housing Development in a Generation

By GovPrepare News Desk – December 4, 2025

Standfirst: The City of Toronto has launched construction on the largest co-operative housing project in Canada in over 50 years, addressing housing affordability and supply challenges with support from municipal, provincial, and federal partners.

Key Highlights

• Toronto begins construction of a 600-unit co-operative housing development on city-owned land.
• Project is the largest of its kind in Canada since the 1990s.
• Funded through all three levels of government with over $150 million in combined contributions.
• Designed to provide long-term affordable housing for low- and middle-income families.
• Supports the City’s HousingTO 2020–2030 Action Plan goals.
• Official groundbreaking took place on November 30, 2025, at the West Don Lands site.

Background and Context

The City of Toronto has faced a persistent housing crisis, marked by rising rents, limited affordable housing stock, and a growing need for permanent housing solutions. According to the Canada Mortgage and Housing Corporation (CMHC), Toronto’s rental vacancy rate stood at just 1.6% in 2024, one of the lowest among major Canadian cities.

Historically, co-operative housing played a key role in Canada’s affordable housing strategy during the 1970s and 1980s. Co-ops offer an alternative to market-based rentals and home ownership by allowing residents to collectively own and govern their housing communities. However, new co-op development largely stalled in the 1990s due to funding reductions at the federal level.

Momentum has returned in recent years. Municipalities like Toronto, supported by the Government of Canada’s National Housing Strategy, have committed to revitalizing non-market housing options. The HousingTO 2020–2030 Action Plan outlines a significant expansion in community housing and inclusion-focused developments.

The New Development

On November 30, 2025, Toronto Mayor Olivia Chow officially launched construction on what will become Canada’s largest co-op housing development in decades. The site, located in the West Don Lands, will feature approximately 600 mixed-income units across multiple mid-rise and high-rise buildings developed on city-owned land.

The initiative is spearheaded by the City of Toronto, with substantial financial backing from key partners:

• City of Toronto: Providing land and over $40 million in direct investment through the Housing Now Initiative.
• Government of Ontario: Committing $30 million toward infrastructure upgrades and energy efficiency measures.
• Government of Canada: Contributing over $80 million through the National Housing Co-Investment Fund and Rapid Housing Initiative.

The buildings will be constructed to meet high environmental standards, blending energy efficiency with affordability. Approximately 40% of the units will be geared to households earning less than the city’s median income, and a portion will be dedicated to seniors, Indigenous residents, and people exiting homelessness.

The Toronto Community Housing Corporation (TCHC), working alongside local co-op housing providers and non-profit development partners, will administer and oversee long-term operations, ensuring governance by resident members.

Expert and Industry Reaction

The Canadian Housing and Renewal Association (CHRA) praised the announcement as a meaningful step toward revitalizing the co-operative housing model.

“This development demonstrates a multi-government commitment to long-term affordability that has been missing since the 1990s,” said Jeff Morrison, CHRA Executive Director, in a press statement.

Dr. Carolyn Whitzman, a housing policy expert affiliated with the University of Ottawa, emphasized that solutions like this are essential for ensuring community resilience and equity.

“We need deeply affordable housing that isn’t vulnerable to market speculation. The co-op model is proven, democratic, and enduring,” she told GovPrepare.

Toronto’s tenants unions and non-profit housing advocates also supported the project, saying it signals a shift away from reliance on private market solutions to the housing crisis.

Alignment with Global or National Standards

The initiative supports several principles outlined in the United Nations Sustainable Development Goals (SDGs), particularly SDG 11 – Sustainable Cities and Communities, which calls for inclusive, safe, and affordable housing for all.

From a national alignment perspective, the development is part of the Canada Mortgage and Housing Corporation’s (CMHC) commitment to build more non-profit and co-operative housing through its National Housing Co-Investment Fund. The fund supports projects that prioritize energy efficiency, affordability, accessibility, and proximity to transit and services.

On a municipal level, the development is aligned with the HousingTO 2020–2030 Action Plan, which aims to create 40,000 new affordable rental homes by 2030, including 18,000 supportive housing units.

Impact on Stakeholders

For Residents: Low- and moderate-income Torontonians will gain long-term, stable housing options in a community-governed setting. This alleviates pressure on emergency shelters and reduces housing precarity.

For Government: The development represents a model of intergovernmental collaboration, showcasing how strategic investment in public land and infrastructure can generate measurable social returns.

For Housing Providers: NPOs and co-operative associations gain opportunities to expand their sector and implement democratic housing models at a large scale. It also allows for resident input into design and operations.

For the Construction and Green Building Sector: With a strong emphasis on sustainability, the project provides new contracts and employment for tradespeople, green architects, and energy efficiency consultants.

Official Guidance

• City of Toronto Newsroom
• Canada Mortgage and Housing Corporation (CMHC)
• Ontario Ministry of Municipal Affairs and Housing
• Government of Canada – Energy and Environment Initiatives
• Canadian Housing and Renewal Association

Conclusion

The launch of Canada’s largest co-op housing project in over a generation signals a major policy milestone for Toronto and a renewed commitment to inclusive, resilient housing strategies. With multi-government backing, a clear social mandate, and ecological considerations, the West Don Lands development stands as a model for similar initiatives across the country.

Construction is expected to be completed in phases, with initial occupancy projected by 2027. Ongoing project updates will be made available through the City of Toronto and CMHC websites.

As cities nationwide grapple with housing challenges, this initiative highlights how integrated, large-scale solutions can address both short-term needs and long-term sustainability goals.

Excerpt (Meta Description): Toronto begins construction on Canada’s largest co-op housing project in decades to address affordability, supported by all levels of government.

Tags: affordable housing, co-operative housing, Toronto housing plan, National Housing Strategy, Canada urban development, CMHC, HousingTO, West Don Lands, social housing, municipal housing policy, green construction, Housing Canada