Ontario Construction News staff writer
In 2022, Ontario broke ground on nearly 15,000 new purpose-built rentals, a 7.5 per cent increase from 2021 and the highest number on record. This year, rental starts across the province total more than 8,500 new units, which is a 77 per cent increase over January to May of 2022.
With rent prices soaring, the provincial government has capped rent increases for 2024 at 2.5 per cent, below the average inflation rate of 5.9 per cent, the Ontario government announced last week.
The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year. Under the Residential Tenancies Act, the guideline is capped at 2.5 per cent to help protect tenants from rising interest rates that would result in higher rent.
“Our government knows the cost of living continues to be a challenge for many Ontarians, including renters, which is why we are holding the rent increase guideline at 2.5 per cent,” said Steve Clark, minister of municipal affairs and housing. “This decision builds on the historic tenant protections contained in our recent Helping Homebuyers, Protecting Tenants plan, and demonstrates our commitment to help tenants across the province.”
Clark made the announcement as he met with provincial housing ministers from across Canada.
“From coast to coast to coast, we’re facing a housing supply crisis – and all levels of government need to work together and share insights about how we can build the homes Canadians need and deserve,” he said.