New year, new growth: The construction shaping Waterloo region in 2025

A new year means new construction, and for Waterloo region that's a good thing.

Canadian Mortgage and Housing Corporation (CMHC) reports from last year show less progress on the housing front than years previous, making the region's goal to support one million residents by 2050 more difficult.

But Anthony Passarelli, CMHC's lead economist for southern Ontario, said he's "expecting the construction activity to actually pick up [in 2025] from what's been a pretty slow [2024]."

Using the most recently available data, new housing that began construction last year is only slightly lower than it was by that point in 2023, but the decrease in completed and move-in ready units is more noticeable — down by about 1,200 units.

However, despite there being lower supply, Passarelli said that as a result of last year's international study permit cap, fewer international students looking for housing actually led to the region's highest vacancy rate since 1993.

'The need is just so great'

Looking at 2025, Passarelli is optimistic.

"What seems to stand out is the number of these rental apartment projects that are past the city approvals process," he said.

He said a number of those are expected to begin construction this year, making up for 2024.

A few of the projects with permits are being run by Habitat for Humanity Waterloo Region.

Philip Mills, the CEO, said they have a 24-unit stacked townhouse complex in Cambridge under construction. He said they're also involved in a development that would see more than 70 units pop up in the Stanley Park area of Kitchener. All of which are built with the purpose of being affordable.

"The need is just so great right now," said Mills.

He said it's important that organizations like his, deliver housing supply sooner rather than later.

"Whatever we're doing right now doesn't solve the problem now," he said. 

"This is to solve the problem as it exists in two and three years when people can start to move into the homes that we're hoping to start now."

Considering the growth the region is expecting, Mills said he needs to keep that mindset because nothing in housing is ever done quickly.

Mills said Habitat for Humanity is also involved in negotiations for a more than 1,000 unit affordable development in the city of Waterloo.

"I think if we can come to an agreement with the City of Waterloo, that would really position us well to have something transformational. One thousand plus homes will be transformational."

Outside of Habitat for Humanity, CMHC's database says that there are just under 6,000 homes under construction in the region as of November 2024 — which is the most up-to-date information available — about 5,300 of those are apartment units.

Recreation facilities 'an expectation,' says Cambridge official

When it comes to non-housing projects, sports and recreation facilities dominate construction schedules around the region.

The city of Cambridge has seen a big push toward sports, from the completion of an outdoor soccer complex and ground breaking for the long awaited indoor recreation complex last year, to this year's expected completion of the Preston Memorial Area renovation.

Shane Taylor is the manager of recreation and capital projects for the city of Cambridge. He said they've felt the push coming from inside the community.

"It's become an expectation in society these days to have these higher end, well thought through, purpose built facilities," he said.

The City of Cambridge wesbite says the indoor recreation complex will feature a 10-lane swimming pool, leisure pool, and a gymnasium area for sports like volleyball, basketball and pickleball. It will also house the newest branch of the Cambridge Public Library — the Idea Exchange. 

"It comes down to lifestyle. People want to move to the region because these amenities exist."

Construction started in summer last year, will continue throughout this year and is expected to be completed late next year, said Taylor.

The indoor recreation complex in Kitchener is seeing similar progress. Having begun in June 2024, construction will continue throughout 2025 and finish in 2026, according the City of Kitchener website.

That facility will feature an indoor pool, support a FIFA-sized turf soccer pitch and include an indoor walking track around the turf. There will also be a cricket batting cage and spaces for community events.

Kitchener Central Transit Hub

One of the most notable projects due to start construction this year is the Kitchener Central Transit Hub at the corner of King Street West and Victoria Street North.

The project received funding in 2016 and was slated to start construction in 2020, but that was pushed to 2021, again to 2023 and is not expected to begin this year.

Despite the delays, regional councillor and chair of the infrastructure committee, Colleen James, told CBC News in an interview in December that she's confident the progress they've made will ensure the construction starts on time.