Finance Minister Chrystia Freeland said the federal government is allocating nearly $200 million in new funds to support low-income renters and shelters.

Ottawa is injecting an additional $99 million into the Canada Housing Program, which provides financial support to low-income renters in partnership with provinces and territories.

Freeland added that another $100 million will be allocated for winter emergency funding to help shelters provide more space for people without housing.

These measures come as the government faces increasing pressure to address high rental prices and assist communities experiencing homelessness.

Freeland announced this statement along with other government members at a weekly press conference in Ottawa.

Ministers with portfolios affecting the economy have been holding semi-weekly press conferences since the fall as part of the Liberal government's efforts to promote policies addressing cost of living issues.

Freeland said on Tuesday: “We all know that housing is the main challenge in Canada right now, and it is a key challenge in people's lives, and this is particularly true for Canadians struggling with high rental costs.”

Data from Rentals.ca and market research company Urbanation showed that the average rent asked for December in Canada jumped by 8.6 percent year-over-year to a record high of $2,178 per month.