From housing and transit upgrades to new community spaces, here’s how our region evolved in 2025.
As 2025 comes to a close, it’s clear that the Kitchener-Waterloo area continues to be one of Ontario’s fastest-growing and most forward-thinking communities. This year brought significant change, including major healthcare investments, new housing projects, and policy reforms designed to make our region more equitable, sustainable, and livable for everyone.
Here’s a look back at some of the most impactful developments that shaped Waterloo Region in 2025 and a glimpse at what’s still to come.
Major Changes in Healthcare: A New Chapter for Regional Hospitals
One of the biggest stories of the year was the official merger of Grand River Hospital and St. Mary’s General Hospital, creating the new Waterloo Regional Health Network (WRHN). This unified system aims to streamline care delivery, reduce duplication, and improve access across the region.
In addition to the merger, the Ontario government announced a $10 million planning grant, building on earlier funding, to advance plans for a new acute-care hospital on the University of Waterloo’s north campus.
This new facility is envisioned as a cornerstone of the WRHN, offering around 400 new acute care beds and expanded diagnostic, emergency, maternal/newborn, and pediatric services. While still in the planning phase, it represents a major step toward meeting the region’s growing healthcare needs as our population continues to rise.
Housing and Development: Tackling Affordability and Growth Head-On
Housing remained a major focus in 2025, with several key projects and programs moving forward to help address affordability and supply shortages.
In northwest Waterloo, the Beaver Creek Road and Conservation Drive Redevelopment Project began its first phase, supported by roughly $23 million in funding for infrastructure, roads, and servicing. Once complete, the area could accommodate up to 4,500 new homes, creating a vibrant new residential community close to nature and major employers.
The latest update on this project includes an updated construction schedule and details on road closures.
Meanwhile, in one of Canada’s most ambitious affordable housing efforts, the City of Waterloo finalized a land transfer for a large-scale mixed-use project at 2025 University Avenue East. Developed in partnership with Habitat for Humanity and BUILD NOW, the project plans to deliver 1,000+ attainable and affordable units, along with community amenities.
To encourage smaller-scale infill and rental options, Waterloo also announced a new grant program launching in Fall 2025 to support Additional Residential Units (ARUs), such as coach houses and basement suites. Two grant streams are offered, depending on the property type. Homeowners who create secondary units with below-market rents will be eligible for incentives, helping expand the region’s housing diversity and supply.
Transit, Waste, and Infrastructure: Building for the Future
Sustainable growth also depends on strong infrastructure, and 2025 was a major year for transit and municipal services.
The Region of Waterloo secured nearly $72 million in federal funding under the Canada Public Transit Fund, earmarked for modernizing the transit fleet, improving service reliability, and supporting future expansion over the next decade. These investments will enhance regional connectivity, which is an essential factor for both commuters and new developments.
On the waste management front, a big change is coming in March 2026, when Waterloo Region transitions to cart-based garbage and organics collection. This shift aims to improve efficiency, reduce litter, and encourage better waste sorting at the curb. November 2025 saw the delivery of the new black garbage and green organics carts across Waterloo Region.
Diversity, Inclusion, and Community Policies: Building a More Equitable Region
2025 also marked important strides toward a more inclusive and representative community.
The Region of Waterloo approved its Municipal Diversity Plan 2025, which ensures that appointments to the Waterloo Region Police Services Board better reflect the diversity of the local population. It also introduces READI (Reconciliation, Equity, Accessibility, Diversity, and Inclusion) training for all municipal appointees and community representatives, reinforcing equity as a cornerstone of local governance.
In education, the Waterloo Region District School Board (WRDSB) launched a Strategic Plan Community Consultation process, inviting feedback from students, parents, and educators to help guide its next multi-year plan. This is a reflection of the region’s commitment to collaboration and transparency in public education.
Looking Ahead: A Region on the Move
Kitchener-Waterloo continues to evolve as a hub of innovation, inclusivity, and opportunity. The projects and policies set in motion this year will shape not just the skyline, but also the social fabric of our community for years to come.
From new homes and hospitals to better transit and more equitable governance, 2025 was a year of meaningful progress; proof that Waterloo Region is not only growing, but growing smarter.
Thinking About a Move in 2026? Here’s Why Waterloo Region Is Worth Considering
With major investments in housing, healthcare, transit, and community services, Waterloo Region is on a strong upward trajectory, and that momentum is reshaping neighbourhoods across Kitchener, Waterloo, and Cambridge. Whether you’re looking to buy, sell, or invest, staying informed about these changes can help you make confident real estate decisions.
If you’re planning a move in 2026 or curious about how these developments could impact your home’s value, we’re here to help you navigate the local market with clarity and insight. Reach out any time. We would love to guide you through your next step in Waterloo Region.
