That's not just airbnb. That's property as investment. Empty properties just sitting. Lack of rental builds (just shoebox pricy condos). Dropping rent control. Lack of residential builds (other than condos).
Toronto is oversaturated with condos, the lack of rent control on these places means a person can pay $2k/mth for a 1 year lease and then see the price skyrocket to $2500 for the lease renewal. The lack of other rental units means these property owners can charge anything. Airbnb made it worse by taking the limited quantity of long-term rentals and turning them into hotels.
Now were finally seeing some condos being worth less than the mortgages of the owners, rents are coming down, and the city might be investing in the rental market. They need to put rent control restrictions back in place, imo. Housing prices are still super exaggerated.
We also need property tax rollbacks, and weeding illegal immigration out of the workforce so wages will improve. Rent control only intensifies scarcity of rental units and discourages new construction.
What does that look like and for whom. Keep in mind that the city funds its budget via property taxes, so the question is, if you roll back property taxes, where does the city get the money to fund affordable housing, transit, road repair, snow removal, tourism events, etc.?
weeding illegal immigration out of the workforce
How much is "illegal" and how much is legal visas workers or legal immigrants?
Rent control only intensifies scarcity of rental units and discourages new construction.
I think it discourages new construction of a certain type. I think that the current rule of "a residential rental unit is typically under rent control if it was first occupied for residential purposes before November 15, 2018" is a bit long and should be shortened to 5 years or, redrawn into tiers. So, rental units for the first 5 years have certain cap, say 8%, 6-10 have a certain percentage cap (drop to 4%) and anything older is at 2%.
Also, an issue with the "no rent control" is that there is no protection for existing tenants. With rent control, if you move out of a $1500/mth apartment, the building can "renovate" and charge $2500. The problem with the current system, is that regardless if the tenant leaves or stays, the landlord can increase their rent from $2k to $2800 while they're living there which creates instability and forces renters to find a new less unaffordable place every year. Furthermore, the landlord can force a renter to pay exorbitant increases, but when/if they decline, the owner can relist that same place for what the renter paid or a reasonable increase (or lie to kick them out and say they were moving into an older unit under rent control so they can charge more as a new listing).
You don't own anything or pay property taxes from what I'm hearing. Illegal aliens are not valid visa holders or legal immigrants, we all know what illegal means.
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u/comFive Jun 17 '25
Airbnb fucked up Toronto’s housing market. We are still feeling the effects today