Thunder Bay Gets Final Building Faster Fund Payment: What It Means for Local Housing

Key impact: If you live in Thunder Bay or are thinking of moving there, this funding means more homes could be built faster — potentially making it easier to find a place to rent or buy in the coming years.

The City of Thunder Bay has received its third and final payment of $709,280 from Ontario's Building Faster Fund. Over three years, the city has received a total of more than $2.4 million from this program.

What did Thunder Bay achieve?

The province created the Building Faster Fund to reward municipalities that exceeded their housing targets. Thunder Bay did exactly that — in 2025, the city exceeded its housing target by 110%, with 243 new homes started.

As of May 2025, Thunder Bay has 1,164 housing starts remaining to meet its 2031 goal of 2,200 new homes.

How was the money used?

Thunder Bay used the funding to make it easier and faster to build homes:

Streamlined approval processes for new developments
Changed zoning bylaws to allow more types of housing
Created a one-stop development shop for builders

Who is affected?

Thunder Bay residents — You may see more housing options become available over the next few years, which could help stabilize rents and purchase prices.
Homebuyers — If you're looking to buy in Thunder Bay, increased supply could mean more choices and potentially better prices.
Renters — More housing starts could eventually lead to more rental units, easing competition.
Builders and developers — Streamlined approvals make it faster and cheaper to build in Thunder Bay.
Other Ontario residents — Similar provincial programs exist in other cities, though results vary by location.

What you should do

If you're in Thunder Bay: Watch for new housing developments coming online over the next 2–3 years. More supply could mean better options whether you're buying or renting.
If you're a homebuyer: Check if you qualify for the GST/HST new housing rebate — this can save you thousands on a newly built home.
If you're planning to build: Ask your municipality about reduced development charges. Ontario has an $8.8 billion Development Charge Reduction Program that may lower your costs.
If you're in another Ontario city: Contact your local planning department to see if your municipality has similar programs or incentives for new housing.

What happens now?

The Building Faster Fund has ended, but the province continues other supports:

HST removal on new homes (for qualifying buyers)
$8.8 billion Development Charge Reduction Program
Ongoing provincial targets for municipalities to increase housing supply

Bottom line

Thunder Bay's final payment from the Building Faster Fund is good news for local housing. The city has already used the money to speed up approvals and change zoning rules. While the fund is over, the changes it enabled should help Thunder Bay continue building toward its 2031 goal of 2,200 new homes. For residents, this means more housing options are on the way — but it will take time before you see the full impact.