{"id":8836,"date":"2019-12-03T03:43:13","date_gmt":"2019-12-03T03:43:13","guid":{"rendered":"https:\/\/www.gh360.ca\/?p=8836"},"modified":"2020-10-29T20:01:45","modified_gmt":"2020-10-29T20:01:45","slug":"toronto-housing","status":"publish","type":"post","link":"https:\/\/www.gh360.ca\/?p=8836","title":{"rendered":"Breaking down the housing crisis"},"content":{"rendered":"
[vc_row full_height=”yes” bg_type=”u_iframe” u_video_url=”https:\/\/www.youtube.com\/watch?v=BYciiqXpKaE” video_opts=”loop,muted” bg_override=”full”][vc_column][vc_custom_heading text=”breaking down the housing crisis” font_container=”tag:h1|font_size:100|text_align:center|color:%23ffffff” google_fonts=”font_family:Carrois%20Gothic%20SC%3Aregular|font_style:400%20regular%3A400%3Anormal”][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]\u201c<\/span>W<\/span>e are absolutely in the middle of probably the worst housing crisis that we\u2019ve ever had,\u201d says Geordie Dent, executive director of the Federation of Metro Tenants\u2019 Association (FMTA).<\/p>\n

This is a sentence we have all heard before. Politicians campaigned on it earlier this year, the news discusses it and to millennials it has become the cynical centre of jokes revolving around the inability to find affordable housing in Toronto.<\/p>\n

But with the conversation quickly becoming number driven and convoluted, it can be hard to keep up.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_text_separator title=”What is the housing crisis?”][vc_column_text]Dent explains that the rental housing crisis is characterized by two aspects.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]

  • <\/i><\/div>

    The exponential rate<\/p>\n

    in which rent has increased<\/p>\n<\/div><\/div>

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  • <\/i><\/div>

    The general lack of housing<\/p>\n<\/div><\/div>

    <\/div><\/li><\/ul><\/div>[vc_column_text]According to mortgage and real estate broker Noreen Kho, this lack of housing is because Toronto is currently in a \u201cseller market.\u201d<\/p>\n

    Kho broke down the three types of markets:[\/vc_column_text][vc_row_inner][vc_column_inner width=”1\/3″][vc_hoverbox image=”9358″ primary_title=”Buyer Market” hover_title=”” shape=”square” css=”.vc_custom_1575385526630{background-color: #939393 !important;}”]\n

    There is supply but no demand. There are many units for potential renters to choose from, but it can be challenging for people trying to rent the spaces as there is not enough demand for units.<\/p>\n[\/vc_hoverbox][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_hoverbox image=”9358″ primary_title=”Seller Market” hover_title=”” shape=”square” css=”.vc_custom_1575385903483{background-color: #939393 !important;}”]\n

    There is demand but no supply. Nothing available to rent so when a unit goes on the market, people jump on it. The seller market began between 2016-2017 and is currently ongoing.<\/p>\n[\/vc_hoverbox][\/vc_column_inner][vc_column_inner width=”1\/3″][vc_hoverbox image=”9358″ primary_title=”Balanced Market” hover_title=”” shape=”square” css=”.vc_custom_1575385552742{background-color: #939393 !important;}”]\n

    When the supply and demand for units are in balance. There are enough units available for the people looking to rent. Kho believes that this is what the Toronto housing market is heading towards.<\/p>\n[\/vc_hoverbox][\/vc_column_inner][\/vc_row_inner][vc_column_text]\n

    Kho explains that one of the main reasons we are currently in a seller market is because of the mortgage stress test, implemented by the Department of Finance in 2017.<\/p>\n

    This stress test makes it harder for homebuyers to qualify for a mortgage. Because it is harder to qualify, buying becomes unattainable and people rent instead. More people renting leads to a supply and demand issue.<\/p><\/blockquote><\/div>\n

    Additionally, Dent says that the growth in Airbnb has only made the situation worse. According to him, Airbnb has pulled approximately 1200 units off of the market in the last 2-3 years.[\/vc_column_text][vc_text_separator title=”How did we get here?”][vc_column_text]In 2018, the Ford government decided to scrap rent control in the province for new buildings. This means that if a tenant is already living in a unit, the rent can only go up a certain amount per year in correlation with the guideline amount. However, if the space is unoccupied, the landlord can raise the price to whatever they want.<\/p>\n

    This was done as an effort to create more housing by encouraging developers to build more rental units at the expense of affordable rent.<\/p>\n

    Dent explains that in 1997, the vacancy rent control program was scrapped. Vacancy rent control was initially put in place to ensure that landlords could not jack up the price of rent.<\/p>\n

    \u201cIt prevents the kind of rent escalation in Toronto right now.\u201d<\/p>\n

    When it was cancelled, the government said that money would go towards construction of rental units. However, this never happened and many believe that the government decision in 2018 could be history repeating itself.[\/vc_column_text][\/vc_column][vc_column][\/vc_column][vc_column][\/vc_column][\/vc_row][vc_row][vc_column][vc_text_separator title=”A landlords\u2019 market”][vc_column_text]Dent explains that a large portion of the problem is that this is a \u201clandlords\u2019 market,\u201d meaning that people are so desperate for a unit that landlords can break the rules.<\/p>\n

    \u201cWhen you\u2019re in a housing crisis,\u201d Dent says, \u201cPeople\u2019s standards have to drop just to get a place.\u201d<\/p><\/blockquote><\/div>\n

    This creates \u201crampant abuse of the law by landlords,\u201d Dent explains.<\/p>\n

    The FMTA website contains a hotline that tenants are able to call for information and counselling on tenants\u2019 rights. Dent says that there has been an increase in calls about tenants\u2019 being unable to afford rent and questions about their rights.<\/p>\n

    \u201cA lot of landlords just ask for money and tenants don\u2019t know the rules,\u201d Dent says. \u201cAnd they just pay it.\u201d[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_text_separator title=”Renters in Toronto”][\/vc_column][\/vc_row][vc_row][vc_column][vc_custom_heading text=”Mrinal’s Place” font_container=”tag:h2|font_size:34|text_align:left|color:%23000000″][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]

    • <\/i><\/div>

      WHO?<\/strong><\/p>\n

      20 years-old<\/p>\n

      OCAD university student<\/p>\n<\/div><\/div>

      <\/div><\/li>
    • <\/i><\/div>

      WHERE?<\/strong><\/p>\n

      Elm and St. Patrick<\/p>\n<\/div><\/div>

      <\/div><\/li>
    • <\/i><\/div>

      INCOME?<\/strong><\/p>\n

      about $2000 per month<\/p>\n<\/div><\/div>

      <\/div><\/li>
    • <\/i><\/div>

      RENT?<\/strong><\/p>\n

      $2000 per month split with one roommate<\/p>\n<\/div><\/div>

      <\/div><\/li><\/ul><\/div>[vc_column_text]Mrinal Dhase is a full-time student and works part-time at a men’s clothier where she does styling and custom content for the company. Her estimated monthly income is $2000, half of which goes directly to her rent. She shares the apartment with one roommate and her cat.<\/p>\n

      For the $2000 price tag, the apartment has two bedrooms, one bathroom and a kitchen. There is no common space or living room.[\/vc_column_text][vc_column_text]