Ontario Construction News staff writer
Ottawa Mayor Mark Sutcliffe is positioning the nation’s capital as a testing ground for federal-municipal housing cooperation, citing a recent $400-million partnership with Prime Minister Mark Carney’s government as a blueprint for the province.
Speaking at the Greater Ottawa Home Builders’ Association (GOHBA) annual Mayor’s breakfast on Jan. 8, Sutcliffe touted the city’s resilience in a challenging economic climate, noting that Ottawa has bucked the trend of slowing construction seen in other major Ontario markets.
“We want to lead the country,” Sutcliffe said. “We want to say yes to housing and we want to say yes to more affordable housing.”
The mayor highlighted a landmark agreement signed last month with the federal agency Build Canada Homes. The deal commits $400 million toward the construction of 3,000 affordable homes in Ottawa, utilizing factory-built technologies designed to cut construction timelines by half.
“Together we committed to investing $400 million… That is a giant leap forward for affordable housing in our city,” Sutcliffe said.
The optimistic tone comes as Ottawa recorded a 22 per cent year-over-year increase in housing starts through October 2025, a figure that stands in sharp contrast to the declines witnessed in the Greater Toronto Area and other parts of southern Ontario.
Sutcliffe attributed part of this success to the city’s aggressive Housing Action Plan, which includes the upcoming elimination of 13 types of development studies and a new Zoning By-law intended to unlock density. He also emphasized the city’s ability to maintain a stable investment climate by keeping property tax increases to approximately three per cent annually, avoiding the fiscal shocks seen in Toronto and Vancouver where rates have risen by more than 20 per cent over three years.
However, challenges remain regarding infrastructure funding and development charges. Sutcliffe noted that while the municipal government is streamlining its own processes, collaboration with upper levels of government remains critical to address the “missing middle” and infrastructure deficits.
“One of the dynamics that can be frustrating sometimes is you talk to one level of government and they say, ‘oh, we’re waiting to hear from the other level of government’,” Sutcliffe said. “I think there is a willingness on the part of both the federal and provincial governments to do something… The question is what and, more importantly, when.”
With updated projections suggesting Ottawa’s population could grow by 680,000—significantly higher than the 400,000 anticipated in the current Official Plan—industry leaders are calling for immediate action to ensure the recent momentum translates into long-term supply.
“The progress made over the past year shows what’s possible when industry and government work together,” said GOHBA Executive Director Jason Burggraaf. “But as we begin 2026, the focus must be on turning policy direction into housing on the ground.”
