By Howard Paskowitz, Senior Vice President, Development and Public Affairs, Starlight Investments 

Canada’s housing challenge is no longer defined by a lack of awareness. Across the country, governments have introduced financing tools, tax measures and policy reforms designed to increase housing supply and improve affordability. The federal government’s creation of Build Canada Homes expanded rental housing financing programs. At the same time, partnerships with provinces, including Ontario and British Columbia, address development-related barriers. These actions reflect a growing recognition that more homes will only be built if projects are viable and delivery can be accelerated.  

That progress is worth recognizing. 

The question now is whether those efforts can consistently improve project viability and help move more housing from concept to completion. 

For those of us actively developing, building and operating rental housing, the long-term need for supply is not in doubt. Canada’s population continues to grow, demand for purpose-built rental housing remains strong, and the need for professionally managed rental communities is evident in virtually every major market. 

What remains less certain is whether the conditions exist to build at the scale the country requires. 

Recent Policy Reforms Reflect a Growing Focus on Project Viability 

For years, housing discussions in Canada focused primarily on supply targets. While those targets remain important, the conversation has increasingly shifted toward a more practical question: what conditions are required to make housing projects financially viable in the first place? 

That shift is significant. 

The creation of Build Canada Homes, additional funding through the Apartment Construction Loan Program, actions to reduce tax burdens on new rental housing, and recent provincial-federal efforts aimed at reducing development-related costs reflect a broader shift toward addressing the practical constraints that affect housing delivery. Projects must be able to move forward in the real world of financing, approvals, construction and operations. 

This is particularly important for purpose-built rental housing. Unlike condominium development, where revenues are realized through upfront unit sales, rental housing requires a much longer investment horizon. Developers, lenders and investors must have confidence not only in current market conditions but also in the long-term viability of a project. Ultimately, no amount of policy ambition can improve housing supply if projects cannot be made feasible and delivered.  

Creating More Housing Requires the Right Conditions  

Across Canada, many rental housing projects face the same challenge: the demand exists, but the path to delivery remains complex. 

Construction costs remain elevated. Labour shortages continue to affect schedules and budgets. Municipal development charges and servicing costs can materially impact feasibility. Approval timelines often introduce uncertainty into projects that already operate on long timelines and narrow margins. 

None of these challenges are new to the industry. What has changed is the growing recognition that they cannot be viewed as secondary issues. 

When projects become financially unworkable, housing supply does not simply slow; it stops. 

That is why alignment across all levels of government remains so important. Federal financing initiatives can improve feasibility, but their impact is limited if municipal costs continue to rise or approval processes remain unpredictable. Similarly, municipal efforts to encourage development are most effective when they complement provincial and federal housing objectives. 

Housing delivery happens when these pieces work together. 

The most effective housing policies are often not the most visible ones. They are the policies that quietly reduce uncertainty, improve financial feasibility and allow projects to move forward with greater confidence. 

Across Canada, Delivering New Housing Requires Persistence and Long-Term Investment 

The opportunities and challenges facing housing delivery are evident in markets across Canada. 

At Starlight, our development pipeline spans multiple regions and illustrates both the continued demand for housing and the persistence required to bring new supply to market. 

In Victoria, British Columbia, Harris Green Village is transforming two underutilized downtown blocks into a mixed-use, transit-oriented rental community that will ultimately provide more than 1,500 rental homes, including affordable housing, alongside commercial space, an accessible playground, and public amenities. The project reflects years of collaboration, planning and investment, but it also demonstrates what can be achieved when stakeholders remain committed to a long-term vision. 

In Toronto, Donvale Commons recently celebrated the topping off of its residential tower, marking an important milestone in the delivery of a transit-connected infill rental community. Reaching this stage reflects years of work across planning, approvals, financing and construction. Like many large-scale rental developments, the project underscores the importance of creating conditions that allow well-conceived housing projects to advance with greater certainty through the development process. 

Elsewhere in Toronto, 557 The West Mall also reflects the growing importance of infill development as part of Canada’s housing solution. Adding new housing within established communities can be one of the most efficient ways to increase supply, particularly where residents already benefit from existing transit, retail and community infrastructure. 

Starlight has also recently completed purpose-built rental projects such as The Lively in North Vancouver and Shoreview in Barrie, Ontario. While every market presents different opportunities and challenges, these projects share a common theme: delivering housing requires persistence, significant investment, and a development environment that supports long-term project feasibility. 

Collectively, they demonstrate that the industry has both the willingness and capability to deliver housing. The challenge is creating conditions that allow more projects to proceed at greater speed and scale. 

Housing and Infrastructure Must Advance Together 

Discussions about housing supply often focus on buildings. Equally important is the infrastructure that allows communities to grow successfully. 

Transit systems, roads, utilities, water and wastewater capacity, and other essential infrastructure influence where and how growth can occur. In many cases, infrastructure limitations can be just as significant a barrier to housing delivery as financing or approvals. 

This is one reason recent government efforts linking housing growth with infrastructure investment are so important. New homes require the physical systems that support vibrant and growing communities. Without those systems, housing targets become increasingly difficult to achieve. 

At Starlight, we see housing and infrastructure as complementary components of long-term community building. 

That perspective helped inform the recent launch of Starlight Infrastructure Solutions, a strategic platform focused on investing in essential-use infrastructure assets that support public, social and economic systems. As Canada continues to invest in housing, there is a parallel opportunity to strengthen the infrastructure networks that enable future growth. 

The most successful communities are not built through housing investment alone. They are built through coordinated investment in both housing and infrastructure. 

Canada’s Next Housing Challenge Is Execution 

Canada has made meaningful progress in recognizing the importance of housing supply and introducing policies intended to support new development. 

The industry’s challenge today is not identifying demand. It is creating the practical conditions that allow more projects to become viable and move efficiently from approval to delivery. 

That requires continued collaboration among governments, developers, lenders, builders and communities. It requires predictable policy frameworks, timely approvals, competitive financing and infrastructure investment that keeps pace with growth. 

Most importantly, it requires a continued focus on outcomes. 

Housing policy is ultimately measured not by the number of announcements made, but by the number of homes delivered. 

Canada has the tools. What’s needed now is the will to deliver. 

Pictured: The Lively is located in the Upper Lonsdale neighbourhood of North Vancouver. The community offers 40 rental suites across four-storey low-rise buildings.