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Peterborough is taking another step towards supporting future housing growth, with a major funding announcement from the provincial and federal governments that could help bring more homes to the local market.
On November 9, 2026, it was announced that the City of Peterborough will receive up to $39.9 million in infrastructure funding through the Development Charge Reduction Program (DCRP). The investment recognizes the city’s commitment to cutting residential development charges by 50% for three years, a move intended to lower construction costs and help make more housing possible.
So, what does this mean for Peterborough, and could it make a difference for people looking to buy or rent in the area?
A 50 Percent Reduction in Development Charges
Development charges are fees municipalities collect from builders and developers to help pay for the infrastructure needed to support new growth. This can include roads, water and wastewater systems, and other essential services.
While these charges help communities accommodate new development, they also add to the cost of building new homes.
As part of the funding agreement, Peterborough has committed to reducing development charges by 50% for all residential housing types from March 30, 2026, to March 31, 2029.
According to the provincial announcement, this reduction could lower the cost of building a new home in Peterborough by up to $34,302 per home.
The goal is to reduce some of the financial barriers facing builders, improve the viability of new housing projects and encourage more homes to move forward.
Up to $39.9 Million for Roads and Infrastructure
The funding isn’t just about reducing the cost of construction. A significant part of the announcement involves making sure Peterborough has the infrastructure needed to support a growing population.
The funding will support important water, wastewater and transportation projects, including:
- New sanitary sewer infrastructure along the Otonabee River.
- Replacement and upgrades to existing trunk sanitary sewer systems.
- Construction of two sanitary pumping stations.
- A new trunk sewer connection to the city’s wastewater treatment plant.
- A looped trunk water main system.
- Road reconstruction and widening, along with improvements to water, wastewater and stormwater servicing.
These investments are important because building more homes requires more than available land. Roads, water systems and wastewater infrastructure all need the capacity to support additional residents and neighbourhoods.
Could Homebuyers Save Up to $164,302?
One of the biggest figures associated with this announcement is the potential for combined savings of up to $164,302 on an eligible new home.
This figure combines two separate initiatives:
Development charge reductions: Up to $34,302 in potential savings on the cost of building a new home through Peterborough’s 50% reduction in development charges.
Expanded HST relief: Eligible buyers may also benefit from expanded federal and provincial HST relief on qualifying new homes purchased between April 1, 2026, and March 31, 2027. This initiative could provide savings of up to $130,000.
Together, the two measures could represent substantial savings for eligible new-home purchasers.
It’s important to understand that these are maximum potential savings, not a guaranteed discount on every new home. The actual HST relief depends on the purchase price and eligibility requirements, and development charge savings are reductions in building costs rather than a direct rebate to buyers.
Still, reducing the cost of bringing new homes to market is an important part of addressing housing affordability.
The Potential for More Than 9,200 New Homes
Perhaps the most significant long-term takeaway is the potential impact on local housing supply.
The City of Peterborough estimates that the combination of reduced development charges and investment in housing-enabling infrastructure could help unlock 9,276 new homes.
That number represents potential housing opportunities across different residential types, helping support both homeownership and rental housing.
For a community like Peterborough, where population growth and housing availability continue to be important conversations, creating the conditions for more development is a meaningful step.
More housing options can give buyers and renters greater choice, while supporting the continued growth of the local community.
What Does This Mean for the Peterborough Real Estate Market?
While this announcement won’t change the local real estate market overnight, it signals a commitment to making future housing development more achievable.
Lower development costs, improved infrastructure and the potential for thousands of additional homes could all contribute to a more diverse housing market over the coming years.
For buyers, more housing supply could eventually mean additional options and greater choice in the types of homes available. For renters, supporting new construction may also help expand rental housing opportunities.
There are still questions about how quickly projects will move forward and when new housing will reach the market. The announced funding is also subject to the required federal-provincial agreements, further reviews and a funding agreement with the City of Peterborough.
For now, the announcement is an encouraging development for Peterborough’s long-term growth.
As our community continues to evolve, investments in housing and the infrastructure that supports it will play an important role in shaping what comes next for Peterborough and the Kawarthas.
This article is based on information published by the City of Peterborough. Figures, funding details and projected housing outcomes reflect the original announcement and are subject to change. Potential savings are estimates and eligibility requirements may apply. This article is intended for general informational purposes and should not be considered financial, legal or tax advice.
Original source: City of Peterborough – Ontario and Canada Making Homes More Affordable in Peterborough.
