Ontario’s New Rental Housing Policy: A Step in the Right Direction

Ontario Government Announces New Rental Housing Policy

Last Thursday, Doug Ford’s Provincial Conservative Government released its Fall Outlook. In that report, it announces that all new rental units, or those that are currently unoccupied as of November 16, 2018, will be exempt from the rent control rules that were implemented in April of 2017. This announcement comes after the average rental rate in the City of Toronto grew 12.1% since last April. That’s a whopping $2,379 a month!


What does this mean?

Conversely, all existing buildings and tenants will still be covered by the 2017 Rent Control rules under the Landlord and Tenancy Act. As stated by the Government, the intended consequence of rolling back rent control on new rental units is to incentivize investors and builders to create more rental inventory, which the city of Toronto so desperately needs. According to the Government in its press release, “the demand for housing in Ontario has risen rapidly in recent years, driven by strong population growth and low interest rates.” However, the supply of housing has not kept pace. And this only further leads to higher prices and rents. Over the last few years, rent control policies that weaken investment incentive and construction activity play a heavy role in limiting supply growth in purpose-built rental housing.

Shaun Hildebrand, President of Urbanation – a company that tracks the Toronto rental market data – describes the current state of the market, as “rental supply has fallen to a critically low level. Demand has been pouring into the market while rental construction still remains relatively low. Condo projects are taking longer to reach completion, not as many investors are offering their units for rent, and tenants aren’t moving as often.”


Why is this happening?

With immigration continuing to pour into Toronto, we clearly need more supply and according to Hildebrand, “we need to be building at a pace of probably at least 10,000 a year. To get there, we would need to see the level of units under construction triple at least — above 30,000.”

The results of strong immigration into the GTA combined with the stifling effects of rent control have caused near crisis-like conditions in the Toronto housing market. We see the effects of low inventory in our marketplace daily. Recently, we rented out a  one bedroom in downtown Toronto. Given the lower price point ($1,800 per month), we advertised privately on craigslist and Kijji. In 36 hours, we received 300 email inquiries, with close to 100 people at the open house. We also got 31 rental applications and in the end, we rented the unit for $100.00 over asking, without even asking. If this is not evidence of a housing shortage, we’re not sure what is.

But, it’s a step in the right direction.

While the issue of rent control is a political hot topic, most economists around the world agree that over the long-term, rent controls will have a very negative impact on affordability. It stifles investment into the new supply and updates to the existing supply. We happen to wholeheartedly agree. Is this new government policy going to solve Toronto’s rental housing crisis? Probably not. However, it’s a good long-term step, heading in the right direction.

58 Munro St, Brock ON

58 Munro St, Brock ON


Rare Opportunity With This Wonderful Bungalow Situated On The Corner Of Munro And Peace St. Just Move In And Enjoy! This Home Has A Total Of 8 Parking Spots! Plenty Of Space For All Your Guests! With The Additional 2 Bedrooms And Rec Room In The Basement Makes This An Incredible Home To Own!


Include All Appliances. Mostly Finished Basement Has A Huge Entertainment Area And Games Area. Steps To Community Centre And Parks. Greenbelt Conservation, Library, Place Of Worship, School Bus Route, And Skiing.

This home is over 2400 sq ft, starting with this family room great for entertaining guests!

This is your Dining Room, big enough to have a extravagant party!

The Kitchen has oversized counter space, enough area for all your cooking needs!

Leading into the breakfast area with a custom built-in nook for everyone to enjoy!

This large living room is great for entertaining all your guests, leading into the backyard


In the basement, we have a large recreation room  you can use for a workout area


For more information and if you would like a private viewing, please contact me.

Michael John Lau


Mike's Pick Of The Week December 4th

57 Victoria Park Ave, Toronto Ontario

Listed Price: $699,900


This is a beautiful semi-detached home by the Beaches! With homes being sold in the $750,000 range, this is a superb purchase with newly renovated floors, built in shelves, pot-lights, and a walk-out private fence to the back yard.

This is a perfect home for first time home buyers who are looking to live close to the beaches!

Location: Victoria Park Ave / Windsor Ave


We all hear prices of homes in Toronto are on average over $1,000,000. The beaches is gaining popularity in the last few months because you can still purchase a home around the $750,000 range. There are many new developments around thee area which in turn can be a very good return on investment.

There are plenty of parks, groceries stores, and many shopping plaza’s nearby.

Nearby Schools:

Balmy Beach Elementary School (rated 8.6)

Blantyre (rated 6.2)

St Michael’s Choir (rated 9.9)

Neil Mcneil Secondary School (rated 8.2)

W A Porter Secondary School (rated 7.6)


If you are interested to view this property or want to see other properties nearby, please let me know!


Michael John Lau

Sales Representative, Yonge St Realty Brokerage

Black Friday Top Buy For Home Owners

1. Philips Hue A19 Smart LED Light Bulb Starter Kit


Light up your home with creativity and convenience with the Philips Hue smart light bulb! You can control your lighting options with your smart phone. The lights can be adjusted to the specific moods or programmed to work as handy alarms and timers.

Save $50 between at Best Buy for $129.99 (Reg Price $179.99)


2. Nest Wi-Fi Smart Thermostat 3rd Generation


If you don’t have one already, the Nest Thermostat will remember what temperatures you like, learns your schedule, and programs itself to save money on your gas bill.

As a bonus, you can receive $100 Enbridge bill credit!

Save $70 at Best Buy for $259.99 (Reg. Price $329.99)

3. Ring WiFi 720p Video Doorbell



If you want to feel safe when your not at home, this gadget will do the trick! Ring will allow you to see and speak to the person at your doorstep without you leaving your cozy sofa or comfortable bed. It is Wifi enabled and battery operated all from the touch of your smartphone.

Save $70 at best Buy for $169.99 (Reg. Price $239.99)




If your a busy person and don’t have time to clean, the iRobot 630 Vacuum Cleaner is here to help.

Save $210 at Canadian Tire for $287.99 (Reg. Price $499.99)




Whether you are changing the lightbulbs, repairing ventilations, doing electrical work, every household should have a ladder.

Save $80 at Canadian Tire for $49.99 (Reg. Price $129.99)