Dozens of affordable homes under construction in Toronto

With the average rental rate sitting at about $2,400 in Toronto, prospective tenants might be pleased to hear that the city is moving forward with plans to create an 18-storey, 255 new rental units in the city’s west end–51 of which will be deemed affordable.

Today, the city announced that it, alongside development partners Castlepoint Numa and Hazelview, broke ground on a new rental development in Davenport. 

In a news release, the city said the purpose-built rental development is supported by the municipality’s Rental Housing Supply Program, which aims to accelerate new rental construction by providing financial incentives and grants to create market-rate and affordable rentals across the city. 

The Davenport project, located at 72 Perth Ave., has received approximately $16.5 million from the city in the form of funding and incentives, with such incentives including the indefinite deferral of development charges, a 15 per cent property tax reduction and waived planning and building permit fees for the affordable units. 

The city also said 20 per cent of the new rental homes will be offered at affordable rents for 40 years and managed by WoodGreen Community Services.

According to the city’s website, RHSP affordable rents are $899 per month for one room, $1,127 for a studio, $1,426 for a one-bedroom unit, $1,985 for a two-bedroom, $2,250 for a three-bedroom and about $3,245 for unit with four bedrooms. 

The recent National Rent Report from rentals.ca found that, last month, the average monthly rent of a one-bedroom unit in Toronto cost tenants about $2,188, while the rate for a two-bedroom unit sat at $2,838. 

In a news release, the city said it’s currently supporting more than 44 projects under construction, which will create approximately 11,000 new homes–6,200 of which will be rent-controlled or affordable. 

For the Davenport project, the city said nearly half of the units will be two- and three-bedroom homes, providing more options for families.

On-site amenities will include a fitness centre, swimming pool, children’s playroom, shared workspaces and common social areas. It will also feature bicycle storage, a repair station and direct access to the nearby West Toronto Railpath.

“Projects like 72 Perth help the people who work in this city afford to live in this city. Nurses, teachers, transit workers, artists, small business employees and families who keep Toronto moving should be able to build their lives here,” Mayor Olivia Chow said in a news release.

“With more family-sized rental homes, affordable units and homes close to transit, this project is part of our work to make sure Toronto remains a city where working people can stay, raise a family and belong.”

The project is expected to be completed by the end of 2028.

Renderings from 72perth.com