The City of Waterloo is taking significant steps toward addressing the community's urgent housing needs with plans to rezone 25 acres of city-owned land near RIM Park for residential development. Located at 2025 University Avenue East, the land, currently zoned for employment, is being positioned to support a new mixed-income community featuring affordable and attainable housing.
Background and Site Details
Purchased in 1999 during the development of RIM Park, the property has remained a vacant open field ever since. A recent consultant study estimated that the site could accommodate approximately 730 new housing units — 480 stacked townhouses and 250 apartment units. This development would represent more than half of Waterloo’s provincial housing target for 2024 and would significantly contribute to the city’s goal of adding 16,000 new residential units by 2031.
“People need affordable places to live. The province told us that we need 16,000 new housing units built by 2031. The community told us they need more affordable options, more missing-middle housing, and more housing opportunities in general for families, individuals, seniors and youth of all socio-economic backgrounds. Housing is not just bricks and mortar. It’s about fostering thriving, sustainable communities and neighbourhoods. It’s about taking a large parcel of municipally-owned land and transforming it into the affordable and attainable housing Waterloo residents need."
Mayor of City of Waterloo | Mayor Dorothy McCabe
Since the adoption of the City’s Affordable Housing Strategy, staff have been proactively seeking ways to leverage city-owned lands to create more housing opportunities. This project is a direct result of those efforts.
Planning Strategy: The Path Forward
The City of Waterloo reports that at its recent meeting, Waterloo City Council unanimously approved moving forward with the plan to rezone the land to allow residential development. The first step includes initiating public consultations with nearby homeowners and businesses throughout May 2025.
To expedite the zoning change, staff recommended applying for a Ministerial Zoning Order (MZO) rather than waiting for the Region of Waterloo's scheduled employment lands review, which occurs every five to ten years. The MZO process would streamline approvals by replacing the need for amendments to the Region’s Official Plan, the City’s Official Plan, and the City’s zoning bylaw.
Michelle Lee, Senior Policy Planner for Waterloo, emphasized that the MZO is not intended to bypass community engagement but to accelerate the process, allowing the city to meet its urgent housing targets. Public consultation will remain an essential part of the process.
Project Scope and Housing Concepts
The city’s high-level concept plan envisions compact, efficient housing forms such as stacked townhouses and four- to six-storey mid-rise apartments. These wood-frame buildings would offer a balance between maximizing the number of units and maintaining options for larger, ground-oriented households.
This housing typology would help control construction costs and deliver more affordable units, a crucial component as Waterloo currently faces a shortfall of approximately 3,460 affordable housing units. Between 2010 and 2022, the city added an average of only 12 new affordable units per year, underscoring the urgency of this project.
Pending rezoning approval, the city plans to put out a call for development proposals in July 2025 and select a development partner by December 2025.
Types of Construction Work Needed
Building stacked townhouses and low-rise apartment buildings will require a wide variety of construction trades and services, including:
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Site Preparation and Excavation: Clearing and leveling the land, setting up access roads, and installing utilities.
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Foundations and Concrete Work: Pouring footings, slab-on-grade foundations, and forming walls.
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Framing: Erecting wood-frame structures for the townhouse and apartment superstructures.
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Roofing and Exterior Cladding: Installation of roofing systems, brick, siding, or EIFS exterior walls.
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Plumbing, Electrical, and HVAC: Full installation of residential-grade mechanical, electrical, and plumbing systems.
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Masonry Work: Brickwork, stonework, and blockwork for structural and decorative purposes.
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Interior Finishing: Drywall, painting, flooring installation, cabinetry, and millwork.
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Landscaping and Hardscaping: Creating green spaces, sidewalks, driveways, and other communal outdoor amenities.
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Civil Work: Installation of stormwater systems, sewer lines, curbs, gutters, and public infrastructure improvements.
Financial Considerations
Staff propose making the land available to developers at low or no cost to maximize affordability within the project. The $4.7 million deficit from the city’s original land purchase could potentially be recovered through a federal Housing Accelerator Fund grant.
Additionally, the $7 million estimated cost of servicing the land — which includes providing utilities and infrastructure — could also be funded through the Housing Accelerator Fund.
Council’s approval to move forward aligns with Waterloo’s broader Housing Accelerator Fund Action Plan and commitment to the province’s housing pledge.
Timeline and Next Steps
If council formally approves the MZO request by the end of May 2025 and the Province grants the order, Waterloo hopes to select a development partner by December 2025. Construction could then begin as early as spring 2026, with the aim of delivering hundreds of new affordable housing units as quickly as possible.
By seizing this opportunity to transform vacant land into vibrant, inclusive communities, the City of Waterloo is taking a major step toward creating more affordable housing and fulfilling its long-term urban development goals.
