To those of you who find yourself renting, the struggle you face is real. There is no denying that here, in Toronto, we are facing a very real rental crisis.In part due to runaway rental increases
The Impact of Rent Control
To those of you who find yourself renting, the struggle you face is real. There is no denying that here, in Toronto, we are facing a very real rental crisis.
In part due to runaway rental increases in 2016, then Premier Kathleen Wynne introduced the Ontario Fair Housing Plan ( OFHP). A key element in this piece of legislation was the introduction of universal rent control. The government would stipulate to landlords of all residential varieties, how much ( based on a percentage) that Landlords would be able to increase their tenants rent’s.
The idea was well intentioned. Landlords had seen the rental crunch and as a result, we’re notifying their tenants of increases well in to the double-digits. It was gouging at it’s core and made many parts of the city flat-out unaffordable for most. These new measures were intentioned to flatten out rent prices and bring much needed relief to renters.
Fast-forward to the election of Doug Ford in 2018 and the improvement in rental pricing that renters had experienced was once again in limbo. Citing the need to create more investment in rental housing, the Premier rolled back the universal rent control measures. Any “new” rental unit completed after November 15, 2018 would no longer be subject to rent control measures. The idea was to have builders get back in the business of rental specific buildings - these projects were grounded as a result of the OFHP. This move was panned by tenant advocacy groups and many members of Toronto city council as a license to Landlords to raise rents with no supervision.
With the one year anniversary of the rent control rollback having recently passed, what have the results yielded? Predictably, Landlords have taken full advantage - notifying their tenants of rent prices far out of line of the cost of living and in some cases threatening them with eviction if they dont comply. Tenants in these units are being gouged in some cases to the tune of 25% increases to their rent.
Advocacy groups were called in to act and have won several concessions from builders and Landlords to curb their proposed rent increases to ones more closely aligned to the government standards.
Ultimatly what we’re missing here in Toronto is an adequate supply of rental buildings, instead of condos. There is a middle ground to be found between rent control and profitability for builders that all parties need to find.
If you have questions about your rental situation or are looking for your next home, let’s talk today.