Good morning! This is Queen Street Analytics' weekly roundup of regulatory developments, legislative discussions, political announcements and other government-related news related to residential and commercial construction and infrastructure, and related government initiatives. Every Monday, we break down the most important updates in this space in under five minutes.

Dates: 2025-08-17 to 2025-08-23

📋 In This Week's Newsletter

• 🇨🇦 Canadian Federal GR News
• 🇺🇸 US Federal GR News
• 🗺️ Canadian Provincial GR News
• 📚 What We're Reading This Week

Canadian Federal GR News

Over $1.3B Delivered to Ontario and Quebec for Housing-Enabling Infrastructure

The Government of Canada is disbursing over $748 million to Ontario and $557.5 million to Quebec this year under the Canada Community-Building Fund (CCBF) to support foundational infrastructure and housing growth. Ontario’s funding also supports the Association of Municipalities of Ontario and will go toward initiatives such as the design of the Century Gardens Youth Hub in Brampton and a $6.7 million event space at Windsor City Hall Square. Infrastructure investments in both provinces will target public transit, water and wastewater systems, and local bridges, with Quebec benefiting from an overall budget of more than $4.5 billion by 2028-2029, including more than $1.7 billion in provincial contributions. Funds are distributed through agreements with provincial and municipal authorities, providing flexibility to address present and future infrastructure goals tied to increased housing supply. These allocations also expand investments for roads in rural and unincorporated areas, supporting local travel efficiency in Ontario.

Sources: Announcements: www.canada.ca, Announcements: www.canada.ca

Canada Invests Nearly $12 Million to Advance Housing Innovation in Southern Ontario

FedDev Ontario is investing nearly $12 million across six projects to accelerate innovation in housing manufacturing and supply in Southern Ontario. Recipients include Arctic Acres, Axe Buildings, BK Cornerstone Design Build, Dyck Exterior Installations, Infrastructure Development Partners, and the University of Windsor. The University of Windsor will receive $2 million for a net-zero student residence building using new 3D printing technology, and will provide hands-on training for 60 participants together with a virtual conference and online resource hub. BK Cornerstone Design Build is awarded over $2.5 million to upgrade its facility with an automated wall panel manufacturing line, expected to reduce energy use, cut costs, and shorten build times. These investments, some funded under the Regional Homebuilding Innovation Initiative, are intended to bring new construction methods to market, expanding housing production efficiency.

Sources: Announcements: www.canada.ca

Investment in Building Construction Rises in June

Statistics Canada reported a $454.4 million increase in investment in building construction for June, bringing the seasonally adjusted total to $22.7 billion. The data set provides a detailed breakdown by sector and region. This upward shift in investment activity suggests higher levels of spending in both residential and non-residential building projects during the month.

Sources: Open Government Data Set: www.statcan.gc.ca

New Housing Price Index for July Released

Statistics Canada’s New Housing Price Index, benchmarked to December 2016=100, was published for July 2025. The index tracks movement in contractors’ selling prices for new residential houses, excluding land, across select Canadian metro areas. Monthly and regional trends are available in the released dataset.

Sources: Open Government Data Set: www.statcan.gc.ca

Commercial Rents Data for Q2 2025 Published

The Commercial Rents Services Price Index has been updated with data for the second quarter of 2025, providing insights into changes in average rents for office, retail, and industrial properties across major Canadian economic regions.

Sources: Open Government Data Set: www.statcan.gc.ca

Industrial Product Price Index Climbs 0.7% in July; Raw Materials up 0.3%

For July, the Industrial Product Price Index showed a 0.7% month-over-month gain and a 2.6% year-over-year increase, while the Raw Materials Price Index advanced 0.3% monthly and 0.8% year over year. These figures may affect costs for construction materials and building components across multiple sectors.

Sources: Open Government Data Set: www.statcan.gc.ca

CITT Launches Preliminary Injury Inquiry into Steel Imports

The Canadian International Trade Tribunal (CITT) has initiated a preliminary injury inquiry regarding the alleged dumping of oil country tubular goods (OCTG) from Mexico, the Philippines, Türkiye (including products by Borusan Mannesmann), Korea (by Hyundai Steel), and the US (by Tenaris). The inquiry will determine if dumped goods have caused or threaten to cause injury to Canadian industry, as defined under the Special Import Measures Act. The Canada Border Services Agency (CBSA) commenced the investigation on August 11, 2025, with a preliminary schedule for written submissions set for August and September. The inquiry excludes certain products, such as drill pipe and stainless steel grades above 10.5% chromium.

Sources: Gazette, Part I: www.gazette.gc.ca, Gazette, Part I: www.gazette.gc.ca

Federal Funding for Veteran Homelessness Initiative in Kingston

The federal government announced over $1.9 million in partnership with Homes for Heroes Foundation to support veterans experiencing homelessness in Kingston, Ontario. The investment supports a tiny-home village opened in February 2024, designed to provide both affordable housing and wraparound support services such as counseling and job training for veterans.

Sources: Announcements: www.canada.ca

White Rock Receives Multi-Level Government Investment for Stormwater Management

A combined commitment of over $9.86 million from federal, provincial, and municipal governments will fund upgrades to drainage infrastructure along Marine Drive in White Rock, British Columbia. The project includes installing two kilometers of new stormwater pipe, constructing a new pump station, and replacing aging drainage systems to improve water quality and reduce local flooding.

Sources: Announcements: www.canada.ca

Federal Support Announced for Naawi-Oodena First Nation Economic Zone

Indigenous Services Canada has committed an additional $789,490 for engineering and site servicing at Naawi-Oodena, one of the largest First Nation-led economic development zones in Canadian history, located in Winnipeg. The investment will aid planning for over 5,000 housing units and associated infrastructure, supporting long-term economic activity and residential development by Treaty One Nations.

Sources: Announcements: www.canada.ca

US Federal GR News

HUD Publishes Fiscal Year 2026 Fair Market Rent Levels for Housing Choice Voucher Program

The Department of Housing and Urban Development (HUD) released Fair Market Rents (FMRs) for Fiscal Year 2026, effective October 1, 2025. The methodology is based on updated metropolitan statistical area definitions, recent American Community Survey data, and local cost inflation factors. Housing authorities and stakeholders can submit comments or request FMR reevaluations by September 22. PHAs in designated areas will be required to use Small Area FMRs, with new implementation for some communities in Connecticut and nationwide adjustment options. HUD also announced proposed changes to utility inflation adjustments for the FY2027 FMR cycle, open for public comment.

Sources: U.S. Federal Announcements: www.federalregister.gov

HUD Proposes New Information Collection for Housing Trust Fund Program Compliance

HUD issued a 30-day notice seeking public comment on its proposed information collection for the Housing Trust Fund (HTF) program. The collection encompasses data on property, tenant, owner, financial, and compliance information required for tracking grantee performance, ensuring statutory expenditure deadlines, and monitoring project eligibility, tenant protections, rent limits, and fair housing requirements. The request details time and cost burdens for state agencies and recipients, with total estimated annual cost reported at $1.23 million. Stakeholders have until September 22 to submit comments.

Sources: U.S. Federal Announcements: www.federalregister.gov

USDA Advances Seismic Safety Regulation Review for Federally Assisted New Construction

The USDA’s Rural Utilities Service published a 60-day notice of proposed information collection concerning seismic safety requirements for federally assisted new building construction, per the Earthquake Hazards Reduction Act. The regulation applies to not-for-profit institutions and businesses receiving agency funding, with annual reporting burdens estimated at 8 hours for 10 respondents. The standard mandates construction certifications affirming compliance with seismic standards.

Sources: U.S. Federal Announcements: www.federalregister.gov

FHWA Eliminates Labeling Regulation for Advance Construction Projects

The Federal Highway Administration will rescind the regulation (23 CFR 630.705(b)) requiring the 'AC' project prefix for advance construction of federally-funded highway projects. This aligns documentation with current federal processes for project tracking and funding obligation. The action is designated a deregulatory measure and is effective September 22, 2025. No public comments were received during the proposal period.

Sources: U.S. Federal Announcements: www.federalregister.gov

HUD Issues 30-Day Notice on Multifamily and Healthcare Mortgage Assignment Documentation

HUD is seeking comments on proposed information collection for legal documentation requirements tied to assignment of FHA-insured multifamily and healthcare mortgages for full insurance benefit claims. Updates will clarify document submission, move towards electronic processes, and provide sample forms. The estimated annual burden is 1,200 hours across 24 respondents, with compliance to be tracked under approved OMB protocols.

Sources: U.S. Federal Announcements: www.federalregister.gov

Canadian Provincial GR News

Ontario Doubles Municipal Housing Infrastructure Program Funding to $4 Billion

The Ontario government has announced an additional $1.6 billion investment in the Municipal Housing Infrastructure Program, nearly doubling total funding to $4 billion for the build-out of roads, water systems, and other housing-enabling infrastructure.

Sources: Provincial Announcement: news.ontario.ca

British Columbia Issues Five-Year Housing Targets for Fourth Group of Municipalities

British Columbia set new five-year housing targets for ten more municipalities, with a combined goal of 38,930 new units, over 14,000 of which are below-market rentals.

Sources: Provincial Announcement: news.gov.bc.ca

Nova Scotia Provides $3 Million for Affordable Housing Project in Pugwash

The Province of Nova Scotia is contributing $3 million to Sunset Community’s Sunrise Landing project, facilitating construction of 40 new rental units—half of which will be offered at deeply affordable rates.

Sources: Provincial Announcement: news.novascotia.ca

Ontario Launches New Capital Funding Program for Long-Term Care Construction

Ontario introduced a new Capital Funding Program offering a flexible, percentage-based model to support building long-term care homes, aiming to expedite construction of 58,000 new and upgraded beds.

Sources: Provincial Announcement: news.ontario.ca

Saskatchewan and Canada Invest $3.35 Million in Upgrading Housing Units for Large Families in Regina

Governments of Canada and Saskatchewan completed upgraded housing units targeted for large families in Regina, with a $3.35 million joint investment supporting affordable housing initiatives.

Sources: Provincial Announcement: www.saskatchewan.ca

What We're Reading This Week

• Purpose-built rental construction is having a moment. That won't last without help, says industry report: An industry report discusses the sustainability of the current uptick in purpose-built rental construction.
• Housing starts in Ontario stuck in a rut, unlike the rest of Canada: The Globe and Mail examines why Ontario's housing starts remain stagnant as other provinces experience growth.
• ‘More housing starts means more homes’: CMHC economist: A CMHC economist outlines the impact of increased housing starts on affordability.
• Prairie housing starts drive Canada-wide residential construction increase: CBC covers how prairie provinces are driving national residential construction gains.
• I’m part of one of the first housing developments to break ground using a new federal program. Here’s what it really takes to succeed at getting homes built: A first-person account reflects on challenges and requirements of accessing new federal housing program support.
• Ontario increasing funding for housing-enabling infrastructure: The Toronto Star covers new provincial funding for infrastructure that supports additional housing.
• Quebec, Hydro-Quebec to invest $250M to train more construction workers: CTV News outlines a $250 million workforce development initiative in Quebec's construction sector.
• Lowe’s to buy Foundation Building Materials for $8.8-billion to boost contractor business: Lowe’s acquires a building materials supplier to strengthen its contractor distribution channels.
• Using reverse mortgages as gifts, the Home of the Week and more top real estate stories: A summary of recent developments in Canada's real estate and mortgage markets.
• Modular homes may be part of the solution for Nunavik's housing crisis, NHB says: CBC details how modular solutions are being adopted to address housing shortages northern Quebec.

.