Rent control has emerged as a significant issue in Ontario, particularly for tenants residing in buildings constructed after 2018. These tenants are facing steep rent increases, unlike those covered by provincial guidelines. Critics are urging the government to reconsider its stance on rent control for newer units. However, the government’s lack of response has left many concerned about the future of rent control in Ontario.
The rental market in Ontario is characterized by limited supply and high demand, resulting in escalating rents. Census data reveals that almost one-third of households in the province are renters, with even higher rates in urban areas like Toronto. Rent control has become a central topic in discussions about housing in the province due to the need for affordable and stable housing.
In response to this situation, NDP MPP Bhutila Karpoche introduced the Rent Control for All Tenants Act in late 2022. The proposed legislation aims to repeal a section of the Residential Tenancies Act that exempts units occupied after November 15, 2018, from rent control guidelines. By removing this exemption, the bill seeks to ensure that all tenant-landlord relationships are subject to rent control, regardless of the building’s age.
Karpoche’s bill, supported by several NDP colleagues, emphasizes the importance of comprehensive rent control to protect all tenants. Their argument is based on the belief that the date of a building’s construction should not determine a tenant’s right to rent control. Implementing consistent rent-control laws throughout the province would provide stability and security for all renters, regardless of the building they occupy.
The current situation brings to mind a previous experiment with rent-control exemptions in Ontario. In 1997, the government passed Bill 96, which removed the annual rental-increase limit for units occupied after 1991. However, this policy resulted in a significant shortage of new rental units, failing to meet the demand created by population growth.
Although rent control for all units was briefly reintroduced in 2017, the PC government reinstated the exemption in 2018, setting a new cutoff date of November 15, 2018. This change has once again exposed tenants in buildings constructed after the deadline to substantial rent increases without considering inflation.
Supporters of the current rent-control policies argue that the surge in new rental construction following the 2018 exemption proves the effectiveness of their approach. However, without changes to the existing regulations, these new units will continue to be exempt from rent control, exacerbating the challenges faced by tenants.
The future of rent control in Ontario hangs in the balance. The Rent Control for All Tenants Act provides an opportunity for the government to address the concerns raised by tenants and critics alike. By ensuring that all tenants are protected under rent-control laws, regardless of the age of their unit, a fair balance can be struck between tenant protection and housing market growth. Finding a solution that promotes stability, affordability, and housing development is crucial for Ontario’s rental market and the well-being of its residents.