On March 25, 2025, the City of St. Catharines confirmed it has secured its second round of funding from the Canada Mortgage and Housing Corporation’s Housing Accelerator Fund (HAF), which is a program designed to speed up housing development and support long term affordability across Canada.
With $6.42 million now released as the second instalment (part of the city’s total $25.7 million over four years), Niagara’s largest city is doubling down on its plan to unlock new housing, create development incentives, and remove barriers to building more homes faster.
But this isn’t just a local story. The ripple effects from this funding and the changes it's supporting are expected to impact buyers, sellers, and investors across the entire Niagara Region.
Let’s break it down.
What Is the Housing Accelerator Fund and Why Does It Matter?
The federal Housing Accelerator Fund rewards cities that take bold, strategic steps to expand housing supply. In St. Catharines, this has already translated into:
- More funding for accessory dwelling units (ADUs): including doubling grants for interior ADUs and quadrupling grants for detached ADUs.
- Streamlined permitting and development approvals: including a one-day permit pilot for pre-approved detached ADUs.
- New tools for builders and buyers, like real-time mapping via the new CIVIC Maps portal and an expanded e-permitting system.
- Exemptions for parking requirements on affordable housing, permissions for four units “as of right,” and increased zoning flexibility.
- Creation of a municipal development corporation that will manage city owned land for new housing initiatives.
This isn’t just red tape reduction, it’s a full restructuring of how housing can be developed and fast-tracked in a city that has traditionally seen slow growth in new builds.
How Will This Impact the Niagara Region?
Although the funding is specific to St. Catharines, the outcomes will shape the real estate landscape region wide.
#1: More Housing in Urban Cores = Less Pressure on Surrounding Markets
As new housing comes online in central St. Catharines, it could ease buyer demand in neighbouring cities like Thorold, Welland, and even parts of Niagara Falls. First-time buyers who were priced out of detached homes may now have access to townhomes, ADUs, and small multiplexes within the city.
That means:
Buyers will have more choice without needing to move to fringe communities
Sellers in more suburban/rural towns may face increased competition if new supply meets buyer needs closer to the urban core
#2: Zoning Changes Will Influence Regional Policies
With St. Catharines now allowing up to four residential units by right and offering new incentives for accessory dwelling units (ADUs), other Niagara municipalities may soon adopt similar policies.
This could open the door for higher density housing and creative infill developments in Fort Erie, Niagara-on-the-Lake, and Grimsby, especially as federal and provincial pressure continues to mount.
This is great news for:
Investors looking to build small multi-unit properties
Buyers seeking more flexible housing types
Communities trying to create more affordable and accessible housing stock
#3: Government Confidence = Long Term Stability
When the federal government invests heavily in a local municipality like this, it’s a signal of confidence in future growth. That bodes well for long-term value in St. Catharines and Niagara as a whole.
Buyers looking to settle into a city with infrastructure support, good governance, and a long-term plan for housing can feel reassured about their investment.
What Buyers Should Know:
A) More Options Are Coming, But Timing Still Matters:
While the groundwork has been laid, it will still take time for many of these projects and zoning changes to result in completed housing. Buyers waiting for better options should stay informed and be ready to act when the right opportunities hit the market.
B) ADUs Are Becoming a Key Investment Tool:
If you’re buying a home with an existing ADU or the potential to add one, take note of the incentives. St. Catharines is now one of the most supportive markets in Niagara for legal secondary units. Meaning you can offset your mortgage or boost long-term value more easily.
C) Permitting and Development Will Be Smoother:
New tech, more staff, and a stronger development approval process mean buyers hoping to build, renovate, or add units will face fewer delays and fewer bureaucratic hurdles.
What Sellers Should Know:
A) More Inventory = More Competition:
As new builds begin to enter the pipeline, sellers of existing homes will need to compete on quality, presentation, and pricing.
B) Location Still Matters:
Homes near transit, schools, and walkable amenities, especially in and around St. Catharines’ development corridors, are still poised to see strong demand.
C) There’s a Window of Opportunity Now:
If you own in a neighbourhood that’s likely to be impacted by these initiatives, especially if you have a large lot, development potential, or a home with secondary unit space, you may be in a strong position to sell now before the market becomes more competitive.
Final Thought: We’re Just Getting Started
These initiatives signal a long term shift in how housing is built, bought, and sold in the Niagara Region. As St. Catharines steps up with modern planning tools, new zoning flexibility, and direct financial incentives for creating homes, buyers and sellers across Niagara will need to evolve with it.
We’re here to help you navigate what these changes mean for you. Whether you’re buying your first home, selling a property with ADU potential, or investing in the region’s long-term growth.
Reach out any time to talk strategy. We’ll help you stay ahead of the curve.