Ford PCs rolled back rent control to spur new rental construction.

The rental market situation in Toronto and Ontario, Canada, clearly reflects numerous challenges, impacting renters, housing developers, and the government alike.

1. **Rising Rental Costs:** Rental expenses in Toronto have significantly surged, especially evident in August. A 30% increase in the past two years highlights a substantial rise in prices.

2. **Housing Shortage:** This issue stems from high demand and a shortage of supply in the rental market. The demand for purpose-built rentals has increased, while the number of newly constructed units falls short of meeting this demand.

3. **Abolishment of Rent Control:** The Ontario government has terminated rent control in newly constructed units up to a specified date. This measure aims to incentivize developers to construct more purpose-built rental units.

4. **Shortage of Purpose-Built Housing:** Nearly tripling the number of proposed rental units in the GTA (Greater Toronto Area) from 2018 to October 2022 indicates a surge in developer interest in purpose-built projects. However, only a limited number of these projects have received approval.

5. **Challenges in Housing Development:** Constructing and developing new housing projects is time-consuming and fraught with various challenges, including financial and time-related hurdles.

6. **Government's Role:** The government of Ontario employs policies such as rent control as a tool for managing the housing market. However, the effectiveness of these policies in controlling prices and fostering housing development varies.

7. **Possible Actions:** Some housing experts argue for a greater focus on constructing purpose-built rental units, stating that merely reducing taxes for developers falls short.

8. **Diverse Opinions:** Housing and rent control issues are politically divisive, with differing opinions. Some believe that rent control aids renters, while others contend that such controls hinder housing development.

Overall, the rental market in Toronto and the GTA faces numerous challenges, necessitating a more cohesive approach and more effective housing policies to bring supply and demand into balance.

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