Hamilton is set to receive up to $572 million in federal and provincial funding for roads, water, and wastewater infrastructure in what is the single-largest infrastructure investment in the city’s history.
The funding comes after the city committed to eliminating development charges on all new residential construction for three years.
The funding, announced last Wednesday by the Government of Ontario and the Government of Canada, is part of the province’s Development Charge Reduction Program.
In exchange for the funding, the City of Hamilton has agreed to waive development charges on all residential developments from March 30, 2026, through March 31, 2029, pending final approval by City Council.
Officials say the combination of eliminated development charges and infrastructure investment could cut the cost of building a new home in Hamilton by as much as $100,442.
Paired with a separate federal-provincial move to remove the full HST on new homes between April 1, 2026, and March 31, 2027, which is worth up to $130,000 in savings, buyers could reportedly see total savings of up to $230,000 off the cost of a new home.
The City of Hamilton estimates that the construction cost savings over the development charge reduction period and the investment in “housing-enabling infrastructure” could “unlock over 31,000 new homes.”
Infrastructure funding will go towards widening and reconstructing Barton Street from Fruitland Road to Fifty Road into a five-lane multi-modal arterial road (2029), reconstructing Lewis Road from Highway 8 to Barton Street to an urban standard multi-modal collector road (2027), widening parts of Rymal Road to a five-lane urban arterial corridor (2028), widening and reconstructing Garner Road into a five-land urban arterial corridor (2028), expanding the Woodward water/wastewater treatment plant (2028), and upgrading the capacity of the Greenhill Water Pumping Station (2027).
Under the Development Charge Reduction Program, the Government of Ontario is prioritizing municipalities that cut development charges on all residential types by at least 30 to 50 per cent and hold those cuts for a minimum of three years.
The City of Hamilton’s application was considered one of the strongest in Ontario since City Council committed to eliminating development charges entirely for three years.
Ontario Premier Doug Ford framed the announcement as part of a broader push to bring down housing costs across the province.
“We’re making historic investments in Hamilton to lower costs for families, keep workers on the job and get more homes built faster,” Ford said.
“Today’s investment will support new transportation and housing infrastructure across the city, enabling the construction of tens of thousands of new homes.”
The announcement drew praise from local homebuilding and real estate groups.
A press release from the West End Home Builders’ Association, the voice of the local residential construction industry, says that the announcement “comes at a critical time for Hamilton’s residential construction sector.”
“Housing starts have slowed dramatically, projects have been delayed or cancelled, and the industry has experienced significant job losses over the past two years,” reads the release.
“By improving project viability and reducing the cost of bringing new housing to market, the Development Charges Reduction Program will help restore investment confidence, protect skilled construction jobs, and accelerate the delivery of much-needed homes.”
Sandra Longden, Chair-Elect of the Cornerstone Association of REALTORS, added that the announcement is a “significant and welcome step,” but that savings “must reach homebuyers directly, not stop at the development stage.”
“We welcome the strong consumer protections built into the program to ensure that happens,” she concluded.
The development charge elimination still requires final approval from Hamilton City Council and the signing of various agreements between all levels of government.
Based in Hamilton, he reaches hundreds of thousands of people monthly on Facebook, Instagram, TikTok, and Twitter. He has been published in The Hamilton Spectator, Stoney Creek News, and Bay Observer. He has also been a segment host with Cable 14 Hamilton. In 2017, he received the Chancellor Full Tuition Scholarship from the University of Ottawa (BA, 2022). He has also received the Governor General’s Academic Medal. He formerly worked in a non-partisan role on Parliament Hill in Ottawa.
