BUSINESS

Ontario Has Lost 1,000 Planned Rental Units Since New Housing Rules: Report

Plans for rental apartments have been cancelled or converted to condos.

09/25/2017 13:55 EDT | Updated 09/25/2017 13:55 EDT

TORONTO — A group representing Ontario's rental-housing providers says at least 1,000 planned rental units have been cancelled or converted to condominiums since the provincial government introduced new rent control rules in the spring.

A new report commissioned by the Federation of Rental-Housing Providers of Ontario says the Liberal government's Fair Housing Plan has negatively impacted the province's rental housing supply.

Bloomberg via Getty Images
A crane operates at a condominium under construction in Toronto, Friday, May 26. A new report says at least 1,000 planned apartments have been cancelled or converted to condos since the province's new housing rules were announced.

The report says that before the introduction of the government legislation, 28,000 rental units were in the planning pipeline, but since the new rules were introduced 1,000 of those units have been cancelled or converted to condominiums.

The report estimates that if 6,250 new rental units are not built per year in Ontario supply will continue to drop.

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Housing Minister Peter Milczyn says the province does not plan to change rules which cap annual rent increases and which previously only applied to units built before 1991.

Watch Premier Kathleen Wynne announce Ontario's new housing rules: