Thunder Bay is experiencing a surge in construction and development signaling a transformational period of growth for the city. After a standout year in 2024, 2025 is shaping up to be another exceptional year as Thunder Bay continues to see significant investments in housing, employment projects, and public investments.

By the end of April, the value of building permits issued this year had already hit $123 million, up nearly 75% from this time last year. Housing permits have also seen a significant increase, up 43% from 2024. Additionally, another $60 million in building permit applications are currently under review, setting the stage for even more growth in the months ahead.

Projects include new apartment buildings, commercial spaces like the redevelopment of the former Lowe’s at Intercity Shopping Centre, and public investments such as the new Cardio Care Unit at the Thunder Bay Regional Health Sciences Centre.

Joel DePeuter, Director of Development Services, says this increase in activity reflects the strong momentum happening in Thunder Bay, and he credits the surge to several key factors: the City and CEDC’s collaborative focus on growth, favourable economic conditions such as an affordable cost of living, land and growth capacity and the absence of development charges.

“We’ve created the right conditions for growth: unlocking land, keeping costs competitive, and providing expert support to help projects move forward quickly,” said DePeuter. “Even with a high volume of applications, we’re keeping approvals fast and efficient, and with record investment through programs like the Housing Accelerator Fund, we’re making it easier and faster to build in Thunder Bay.”

City-led efforts to unlock land for housing and award over $8 million in grants, supported by the Housing Accelerator and Building Faster Funds, are helping to support more than 450 new homes. And there’s more to come.

Key growth initiatives soon to be released include:

  • A new Growth Community Improvement Plan to encourage high-value job creation and development projects through targeted tax incentives and grants (coming to Council in June)
  • An upcoming Call for Proposals to develop high-potential City-owned lands, projected to support over 1,000 new homes
  • The launch of the One Stop Development Shop in July will make the development process both easier and faster than ever
  • The Smart Growth Action Plan, now in development by Task Force Growth.

City Manager John Collin says the numbers speak for themselves. "Thunder Bay is on an upward trajectory. Our focus on smart growth, unlocking land for development, and streamlining development is creating a city where people want to live, work, and invest.”

Mayor Ken Boshcoff agrees.  "Thunder Bay is experiencing a remarkable transformation. We are seeing real results from our strategic efforts” said Boshcoff. “But this isn’t just about construction, it’s about building a stronger, more vibrant community, one that is growing, thriving and attracting new residents, businesses, and long-term opportunities."

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Contact: Joel DePeuter, Director, Development Services - 807 624-8837, joel.depeuter@thunderbay.ca