In an attempt to rein in a runaway affordability crisis, the Ontario government introduced new rent control legislation in April. But many industry experts think the policy is going to make things worse, not better.
“Looking forward, we continue to have concerns that rent control legislation announced in conjunction with the Ontario Fair Housing Plan will preclude additional rental supply coming on stream, both in the purpose built and investor-held condominium apartment segments,” writes Toronto Real Estate Board director of market analysis Jason Mercer, in a recent statement.
According to Mercer, if investors can’t charge enough rent to remain cash flow positive, they may sell sooner rather than later, further depleting the already meager levels of supply.
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