TORONTO — Rental housing supply will continue to diminish and vacancy rates will drop further unless at least 6,250 additional new rental units are built each year for the next decade in addition to the expected level of new development, reports a new study by Urbanation.
According to a release, the report, commissioned by the Federation of Rental-housing Providers of Ontario (FRPO), illustrates the rental supply crisis, as do the number of cancelled purpose-built rental projects in the Greater Toronto Area.
Before the introduction of Bill 124 earlier this year, proposed rental projects were at a 25 year high with 28,000 units in the planning pipeline.
Since then, at least 1,000 planned rental units have already been cancelled or converted to condos, the release states.
To address this problem, FRPO has launched its 'Rent On' campaign encouraging Ontarians to ask the provincial government to take measures to allow for more housing choices for renters by introducing amendments to Bill 124.
"Ontario's scarce rental housing supply combined with escalating house and condo prices have created a housing crisis in our biggest cities," said Jim Murphy, president of FRPO, in a statement.
"The only solution is for Ontario to build itself out of this situation. This begins with our provincial leaders working with industry to identify and implement policies that create more purpose-built rental units, not less."