Housing Affordability in Toronto: Low-Income Earners and Recent Immigrants

This paper analyses different phenomena, initiatives, and policies to determine whether they inhibit or promote affordable housing for recent immigrants in Toronto CMA, Ontario. New immigrants tend to live in the largest cities and thereby create extra demand for housing stock. Toronto does not currently have the capacity to supply affordable housing units for its domestic and immigrant populations. This is exacerbated by the fact that the provincial government has removed rent control for newly built or vacant housing units, a decision that encouraged developers and landlords to increase rents. The price determination through the process of supply and demand does not help low-income earners and immigrants’ secure affordable housing because excessive demand for housing units has given developers and landlords significant bargaining power. The municipal government has taken steps, such as the Inclusionary Zoning Policy, to make affordable housing more accessible to low-to-moderate income households in the Toronto CMA. The policy, though, is still in the discussion phase and the municipal government is weighing the concerns of various stakeholders. However, without implementing the Inclusionary Zoning Policy, it was not rational for the provincial government to withdraw rent control policy. To mitigate the affordability problem, Toronto’s municipal government should follow the example of other major cities in North America and implement the Inclusionary Zoning Policy as soon as possible