The recent proposal by the government of Ontario to significantly ease or remove rent-control protections for tenants has raised intense debate about the housing market, investment incentives and tenant security. While proponents argue the changes could unlock rental supply, critics warn that they risk eroding stability for renters and accelerating displacement.
As is often the case, there are advantages and disadvantages to every law change or proposal. One of the central arguments in favour of reducing or eliminating rent controls is that it could incentivize landlords and developers to bring more rental units to market. By removing regulatory constraints on rent increases or lease terms, the government contends that more properties will be offered for rent, thereby increasing supply and helping to ease the housing shortage. For example, the government has suggested that by giving landlords “alternative options” for tenancy arrangements, more units currently not on the market could be unlocked. CCPA+2Toronto Life+2
Secondly, supporters argue that rent-controls can create distortions: when rents are capped strictly, maintenance and reinvestment may lag, landlords may be less inclined to upgrade or even keep units in good repair, and there may be fewer incentives for new construction. In this view, relaxing controls could improve overall housing quality and create a more dynamic rental sector.
Thirdly, proponents suggest flexibility in rent and tenancy could allow market forces to respond more readily to demand—allowing rents to rise or fall, and leases to be structured in ways that reflect local conditions. This could, in theory, lead to more innovation in rental models, different lease lengths, specialised units, and a more market-responsive system.
On the flip side, one of the biggest concerns is the loss of security of tenure for tenants. Under current protections, many renters in Ontario benefit from indefinite leases and rent-control on pre-2018 units, which gives longer-term stability. Changing that can mean more frequent turnover, higher rents at each lease renewal, and greater uncertainty for renters. Analyses argue the proposed changes would allow landlords to raise rents based on market conditions or business strategies. The Grind Magazine+1
Another disadvantage is the risk of sharp rent-increases and displacement of vulnerable renters. Tenant-advocacy groups warn that without controls, low-income households are especially at risk of being priced out, forced to move repeatedly, or pushed into unstable housing. ACORN Canada –+1
Moreover, the justification for the change — namely that many rental units are currently unused and could be unlocked — has been challenged. A research piece from the Canadian Centre for Policy Alternatives (CCPA) argues that the numbers simply don’t support the claim that hundreds of thousands of units are sitting idle. CCPA
There is also the risk that by reducing rent-control rules, rents across the board may rise; this would have knock-on effects for affordability, especially in expensive markets like Toronto and other urban centres. Higher turnover also means more disruption for communities, and possible deterioration of tenant–landlord relations if tenants feel less protected.
In essence, while the proposed reforms aim to stimulate rental development and market responsiveness, the twin risks of increased rents and reduced stability for tenants cannot be ignored. If the changes are implemented without complementary policies — such as investment in affordable housing, tenant relocation supports, and safeguards against exploitative practices — the consequences could be quite serious for low and moderate-income renters.
The question ultimately is: can the rental supply gains (if they materialize) outweigh the losses in tenant protection? Given the housing crisis in Ontario, the pressure is high to act — but reforms must be designed carefully to avoid unintended harm. Policymakers will need to balance the incentives for landlords with robust protections for renters if the change is to be socially sustainable.
