Ontario’s housing market is out of control, much like South Western British Columbia. Middle-class Canadians are being priced out of being homeowners, and it’s becoming what could be a very serious crisis. Even renting in Canada’s major cities is unaffordable for the vast majority of us.
The provincial government of Ontario felt the pressure to take action to ensure that future generations of hardworking Canadians can become homeowners. They introduced 16 new measures to help slow down an out-of-control housing market.
While these measures will likely have an affect on the housing market, it is not guaranteed to be significant enough to enable more Canadians to become homeowners, or rent a reasonably priced, reasonably sized home. However, the broadening of rent control is likely to have a pretty profound effect on renters in Ontario. If you're a renter in or around Toronto, having your rent controlled will be beneficial to your financial security in several ways:
You're going to be able to save more money because your monthly rent isn't going to be raised unexpectedly so high that it absorbs most of your income. Once you move in, your rent cannot be raised more than a certain percentage, so you will be able to maintain a similar monthly budget for the duration of your tenancy.
You will be able to stay longer in one place - controlling the rent means you're not going to see a sudden increase so high that you can't afford to live there any longer. Without rent control, your rent could go up faster than your income does and effectively send you packing.
Rent control is going to make the Greater Toronto area more affordable to those who are not in a position to purchase a home yet.
And if you want to know exactly what the changes will be, these are the new measures:
Overall, rent control is a money saver to tenants and also has its pros for landlords, too. Rent controlled properties tend to retain their tenants much longer than other rentals, leaving the overall maintenance relatively easy for landlords. As well, they have a reliable, steady stream of income.
So, while some of these measures seem abstract and may be ineffective, there are some measures that will help Canadians live easier in Ontario's housing market.
What do you think? Will these new measures by the Ontario provincial government have an effect on housing in the province? What do you think the outcomes of these measures will be? Let us know in the comments!
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