Ottawa is unlocking $1.7 billion in federal funding to lower the cost of building affordable homes Prime Minister Mark Carney said Thursday, as the government ramps up its housing push. 

“For decades, Canada has not built enough affordable housing, and now, Canadians are paying the price,” Carney said. 

Speaking at a construction site in Nepean’s Geyser Place alongside Ottawa Mayor Mark Sutcliffe and Housing Minister Gregor Robertson, Carney outlined a series of measures aimed at cutting building costs and speeding up construction.  

Sutcliffe said the city has signed a “historic” agreement with the feds through Build Canada Homes to deliver up to 3,000 new homes across Ottawa, with about half priced below market rates. 

The measure could bring down the cost of building a two-bedroom apartment by more than $15,000 and an average single-family home by $28,000, Carney said. 

The federal government scrapped the GST on homes under $1 million for first-time buyers last month, saving up to $50,000, with Ontario matching the move through HST relief that could bring total savings to Ottawa in $130,000. 

“Real money back in the pockets of Canadians,” Carney said. 

The government says eight housing projects have already been approved in Ottawa, expected to deliver more than 1,100 rental units. 

“We are fast-tracking these projects to get shovels in the ground in the next few months,” Carney said, adding that construction will extend beyond Nepean into Centretown, Sandy Hill, Overbrook and Lincoln Heights.