Ontario’s New Planning Rules Require Cities to Set Minimum Affordable Housing Targets

Ontario’s housing minister has announced new planning guidelines that require cities to set minimum targets for affordable housing, a move that he says will pave the way for a “long-term building boom.”
Minister Paul Calandra unveiled his government’s Provincial Planning Statement at the Association of Municipalities of Ontario conference this week, saying the land use guidelines will give municipal leaders the “tools and flexibility they need to build more homes.”
“It recognizes that municipalities understand local challenges and priorities when it comes to building homes, and that you know best where and what types of homes are needed to address the unprecedented growth we’ve seen in Ontario.”
Calandra said the document “cuts red tape” while laying out a plan aimed at helping cities and towns move ahead with housing despite market conditions.
“One of the most important things about the new planning statement is that it ensures that housing starts can continue to grow even with the global uncertainty we’re seeing, even with the increase in interest rates,” he said. “We are building the foundation for a long-term building boom across the province of Ontario.”
The province has yet to meet any of its yearly targets aimed at reaching the 1.5 million goal. The closest it came was in 2023 when it reached 99 percent of its 110,000 new home goal after it began including long-term care beds in the tally.
The Provincial Planning Statement is meant to serve as a directive for municipal planners on community development, outlining which areas can be used for residential, industrial, and agricultural purposes.
Calandra said key changes in the document will encourage the construction of more homes near major transit stations as well as on underused low-density lands such as shopping plazas and malls. It also encourages building a broader range of housing options, including housing for students and seniors.
The new Provincial Planning Statement was written after three rounds of consultations with stakeholders over a two-year period.