The C. D. Howe Institute expects Canada's deficit to top $92 billion this fiscal year, given plans to meet NATO's defence spending target of two per cent of GDP.

The province is providing the money to the cities as a reward for exceeding 80 percent of their provincially designated housing targets last year.

In addition to the city’s investment, the project will be funded through one-time capital reserves and fundraising efforts.

The plan promotes the use of prefabricated and modular wood-based building materials, known as advanced wood construction.

A report by Altus Group suggests that without action, by 2027, housing starts could fall by more than 60 per cent versus 2024 levels – unless something is done to spur new investment.