Medallion broke ground Thursday on the first phase of the Foundry District at 119 and 151 Bruce St. in downtown Oshawa.

Construction has started on two purpose-built rental buildings rising 10 and 23 storeys. Together, they will contain more than 500 homes, with 30 per cent designated affordable. Some additional units will be offered on a rent-geared-to-income basis.

The first phase is supported by $188 million through Canada Mortgage and Housing Corporation’s Apartment Construction Loan Program. It also received support from Durham Region and the City of Oshawa.

The groundbreaking comes as apartment construction rebounds across the Oshawa census metropolitan area. Canada Mortgage and Housing Corporation forecasts 950 apartment starts in 2026, up from just 199 last year.

The rental market is also loosening. The agency expects the vacancy rate to rise to 4.6 per cent this year from 3.7 per cent in 2025, while the average monthly rent for a two-bedroom unit increases to $1,810 from $1,754.

Medallion ultimately plans 3,000 rental homes across the nine-building, 23-acre redevelopment of the former Fittings factory property, along with restaurants, retail space and a public park. Leasing for the first two buildings is expected to begin in late 2029.