Toronto apartments being converted to condos to avoid rent control
Many of us know finding an apartment in Toronto can be a nightmare already. Now, a new report suggests that it’s going to be even harder if the provincial government doesn’t step in.
The report, by the Federation of Rental-Housing Providers of Ontario, shows at least 1,000 rental units were converted to condos over the past six months.
In the report, the FRPO says this is a result of the province's new rent control policies. These policies limit the amount your rent can be increased to the rate of inflation.
Because of this limitation, developers are choosing to build condos rather than apartment units, or converting those already in development to condos.
Prior to these rent control policies being put into place, the CBC reported that many groups were warning demand would exceed supply. One of the groups giving this warning was the FRPO, who has now issued this report.
At that time, rental control policies were in place already. However, they only applied to buildings built prior to 1991. This was referred to as the “1991 loophole.” Any building constructed after 1991 was fair-game for rent hikes.
The report also states that the government must enact sweeping new policies to ensure the amount of available apartments doesn't fall to critical levels. Their recommendations include a policy for developers to add at least 6,250 new units in Ontario every year for the next ten years.
At the moment, there are currently 28,000 purpose-built rental units in development, according to the Globe & Mail.
While rent control policies are a dream come true for renters, it seems they may start to make life a nightmare for people trying to find an apartment.
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