Tenant Activists Are Misguided and Wrong About Rent Control (Part 4)
- Housingprovider
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Tenant Activists Are Misguided and Wrong About Rent Control (Part 4)
So what's the issue?
Many Ontarians choose to rent. An increasing number can’t afford to buy given the ever-rising cost of home ownership – house and condo prices rose faster in Canada last year than in any other country in the world – while others prefer to rent for the additional benefits and flexibility. Boomers are looking to downsize and young adults want to live where they work.
But Ontario is facing a rental housing crisis. There are simply not enough rental options. In 2016, vacancy rates in Ontario fell to just 2.1 per cent - the lowest levels since 2001. In addition, Ontario’s population continues to grow rapidly, especially in urban areas.
As a result, rental units are increasingly unavailable and unaffordable.
In addition, this past May the government enacted Bill 124 which attempted to fix the issue but it only addressed one aspect – affordability. Now the situation is being made worse. Thousands of rental units are in jeopardy because developers who were planning to build rental are opting to build condos due to financial implications and disincentives of the legislation.
The cause of this housing crisis is basic supply and demand economics. There is just not enough housing for Ontario’s skyrocketing population.
The Solution
The solution is simple – we need to build more rental units for Ontarians to live in. A healthy supply of true rental apartments – not just condos – will provide quality, affordable housing choice. Purpose-built apartments stay in the rental pool over the long-term and are professionally managed.
A recent report from Urbanation revealed that at least 6,250 rental units per year need to be built over the next decade to address this crisis. Download Report Double that amount would be desirable for a significant increase in the supply of permanent rental housing. So, how can we get there?
Our group proposes that Ontario’s rent controls rules be amended to encourage new rental supply by allowing for either a rolling exemption from the rental guideline for new purpose built rental projects or an increased guideline applicable solely to new purpose built rental. Rental availability in Ontario is facing a crisis made worse by recent government changes (Bill 124). Thousands of needed rental units are in jeopardy because developers who were planning to build new rental are opting to build condos instead due to financial implications and disincentives of the legislation. Download Summary of other measures to increase rental supply.
Many Ontarians choose to rent. An increasing number can’t afford to buy given the ever-rising cost of home ownership – house and condo prices rose faster in Canada last year than in any other country in the world – while others prefer to rent for the additional benefits and flexibility. Boomers are looking to downsize and young adults want to live where they work.
But Ontario is facing a rental housing crisis. There are simply not enough rental options. In 2016, vacancy rates in Ontario fell to just 2.1 per cent - the lowest levels since 2001. In addition, Ontario’s population continues to grow rapidly, especially in urban areas.
As a result, rental units are increasingly unavailable and unaffordable.
In addition, this past May the government enacted Bill 124 which attempted to fix the issue but it only addressed one aspect – affordability. Now the situation is being made worse. Thousands of rental units are in jeopardy because developers who were planning to build rental are opting to build condos due to financial implications and disincentives of the legislation.
The cause of this housing crisis is basic supply and demand economics. There is just not enough housing for Ontario’s skyrocketing population.
The Solution
The solution is simple – we need to build more rental units for Ontarians to live in. A healthy supply of true rental apartments – not just condos – will provide quality, affordable housing choice. Purpose-built apartments stay in the rental pool over the long-term and are professionally managed.
A recent report from Urbanation revealed that at least 6,250 rental units per year need to be built over the next decade to address this crisis. Download Report Double that amount would be desirable for a significant increase in the supply of permanent rental housing. So, how can we get there?
Our group proposes that Ontario’s rent controls rules be amended to encourage new rental supply by allowing for either a rolling exemption from the rental guideline for new purpose built rental projects or an increased guideline applicable solely to new purpose built rental. Rental availability in Ontario is facing a crisis made worse by recent government changes (Bill 124). Thousands of needed rental units are in jeopardy because developers who were planning to build new rental are opting to build condos instead due to financial implications and disincentives of the legislation. Download Summary of other measures to increase rental supply.
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Re: Tenant Activists Are Misguided and Wrong About Rent Control (Part 4)
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