Rent control policies in Ontario are reducing the supply of new rental properties in the Greater Toronto Area, according to a report from real estate consulting firm Urbanation. The province's Premier Kathleen Wynne announced measures in April to cap rent increases at 2.5% a year for all private apartments. The rate of increase in new purpose-built rental units has since slowed, from 1,000 units added to the planned inventory in Q1 2017 to just 1,719 in Q2, according to the report. 2,453 planned rental developments have been converted into condominiums in response to the rent controls, the report states.
Rent control policies in Ontario are reducing the supply of new rental properties in the Greater Toronto Area, according to a report from real estate consulting firm Urbanation. The province's Premier Kathleen Wynne announced measures in April to cap rent increases at 2.5% a year for all private apartments. The rate of increase in new purpose-built rental units has since slowed, from 2,453 units added to the planned inventory in Q1 2017 to just 1,719 in Q2, according to the report. 1,000 planned rental developments have been converted into condominiums in response to the rent controls, the report states.