UrbanToronto’s State of Housing Series – Geothermal’s Rise: A Timely Innovation for a Housing Market in Transition

“In an environment where affordability dominates the conversation, we need to think beyond short-term costs and start treating housing as a long-term asset. Systems like geothermal deliver higher performance over time in terms of comfort, stability, and quality of life.” – Jenny McMinn, Partner, Communications and Impact at Windmill Development Group

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Toronto’s housing market is at an inflection point. As construction slows and affordability challenges intensify, it’s clear that the industry can’t afford incremental change—it needs transformation. Geothermal is emerging as a strategic lever reshaping how homes are designed, financed, and lived in across the Greater Golden Horseshoe.

Featured in UrbanToronto’s State of Housing editorial series, Diverso’s geothermal Energy-as-a-Service (EaaS) model has evolved from a bold idea into a mainstream, scalable infrastructure solution. Approved for programs like CMHC’s Apartment Construction Loan Program (ACLP)—which favours energy-efficient rental builds—the model is kickstarting delayed projects while delivering immediate NOI benefits to the developer.

Projects by Windmill Development Group, including The Plant in Toronto’s Queen West neighborhood, also demonstrate how geothermal can reclaim rooftops from bulky HVAC systems, opening the door to green roofs, urban agriculture, and vibrant communal spaces. Meanwhile, 2444 Eglinton Avenue East—one of Ontario’s largest affordable housing projects in the past 25 years—highlights the technology’s role in meeting stringent green standards without compromising affordability.

Jenny McMinn, Partner, Communications and Impact at Windmill Development Group shares, “In an environment where affordability dominates the conversation, we need to think beyond short-term costs and start treating housing as a long-term asset. Systems like geothermal deliver higher performance over time in terms of comfort, stability, and quality of life.” Bram Atlin, Principal at Smith + Andersen, adds that the technology is now “table stakes” when developers consult him for the best mechanical systems for their project, valued for its reliability, cost control, and low maintenance.

The housing market may be in transition—but beneath the surface, the foundation for a smarter, cleaner, and more resilient future is already taking shape.

Read the full article to discover how Diverso is leading this shift.