How Ending Rent Control Could Deepen Ontario’s Homelessness Crisis

Ontario is already facing a housing affordability crisis. Rent prices have been rising for years, vacancy rates remain historically low, and thousands of residents are struggling to find homes that fit within their budgets. Now, the Ford government is considering changes that could mark the end of rent control as Ontarians know it. While the stated goal is to encourage more housing development and investor participation, many experts and tenant advocates warn that ending rent control could make life even harder for renters, pushing more families toward housing insecurity and, in some cases, homelessness.

Premier Doug Ford’s government has signaled interest in weakening or ending rent control. This idea follows earlier policies that already exempted new buildings constructed after 2018 from rent control limits. Under the new direction being discussed, the province may introduce fixed-term leases that expire after a set period instead of automatically renewing month-to-month. Critics argue that this would give landlords the ability to raise rents far beyond the annual provincial guideline or to simply refuse renewal, effectively forcing tenants out.

The government’s argument is that reducing rent restrictions will attract more developers to build rental housing, since they would no longer be limited in how much they can charge. However, housing advocates, economists, and tenant organizations such as ACORN Canada and the Canadian Centre for Policy Alternatives point out that this approach benefits investors while removing the few protections renters have left. The market may build more supply, but without safeguards, that supply is unlikely to be affordable to the people who need it most.

Rent control is not just a rule about how much landlords can increase rent each year. It is a safety net for people who rely on predictable costs to plan their lives. For many Ontarians, the ability to stay in their home depends on knowing that rent increases will be limited to the government’s annual guideline, which is often around two to three percent. Without this stability, tenants may face unpredictable and significant rent hikes that far exceed wage growth.

Even with current rent control laws, there are already loopholes that allow landlords to raise rents above the guideline. For instance, when tenants move out, landlords can increase the rent to whatever amount they wish, and they can apply for above-guideline increases for major repairs or renovations. Many renters already face year-over-year rent increases that outpace inflation, making it difficult to save or plan for the future. Ending rent control altogether would likely make this worse.

Ending rent control could set off a chain reaction that leads to higher rates of homelessness in Ontario. The first and most obvious impact would be rising rental prices. Without regulation, landlords may increase rents substantially, especially in high-demand cities like London, Toronto, and Ottawa. As rents climb, more tenants will find themselves spending a large portion of their income on housing, often more than forty percent of their monthly earnings. When a single unexpected expense occurs, such as a medical bill or job loss, these households may no longer be able to keep up with payments.

Another consequence would be an increase in evictions and forced moves. If landlords are allowed to use fixed-term leases, they could simply decide not to renew a tenant at the end of the lease and replace them with someone willing to pay more. This lack of security can push families into temporary living situations such as staying with relatives, couch surfing, or relying on short-term rentals. These forms of housing instability are often the first step toward homelessness.

The risk is especially high for vulnerable populations. Seniors on fixed incomes, newcomers, single parents, students, and people living with disabilities are all at greater risk of being priced out of their homes. For these groups, the loss of rent control could mean losing the only affordable housing options available. Once displaced, it is often extremely difficult to find a new home that fits within their budget, especially with rents rising across the province.

Homelessness is not just a personal tragedy; it is a community crisis that places enormous strain on social services, healthcare systems, and local economies. When people lose their homes, shelters become overcrowded, hospitals see more emergency visits, and social agencies face increased demand for support. Research consistently shows that preventing homelessness through rent stability and affordable housing is far less costly than managing it after it occurs.

Ending rent control could also accelerate gentrification and displacement in urban areas. As rents rise, long-term residents may be forced to move away from their communities, breaking social ties and pushing lower-income households farther from their workplaces, schools, and healthcare providers. This not only disrupts lives but also changes the character of entire neighbourhoods, replacing long-standing communities with transient populations.

Supporters of ending rent control often argue that the policy discourages developers from building new rental units, reducing supply and keeping rents high. They claim that allowing market forces to operate freely, by ending rent control, will attract investors and increase the number of available apartments. While this theory sounds logical, it has not proven true in practice. When Ontario removed rent control on new builds in 2018, the expected surge in affordable rental housing never materialized. Developers continued to focus on luxury units, condos, and short-term rentals, which yield higher profits but do little to solve the affordability problem.

Economists who study housing markets have found that rent control’s impact on supply depends on the broader housing ecosystem. In markets where affordability programs, inclusionary zoning, and tenant protections coexist, rent control helps maintain community stability without significantly deterring new construction. In contrast, when rent control is removed in isolation, the benefits flow primarily to landlords and investors rather than tenants.

The conversation about ending rent control is often framed in financial or policy terms, but behind every statistic are real people. A young family in London trying to save for their first home may find themselves unable to keep up with rising rent. A retiree in Toronto living on a pension might face eviction after a rent hike that exceeds their income. A student in Hamilton could lose their housing mid-semester because their landlord decided to renovate and charge more. Each of these stories represents not just inconvenience but the potential start of homelessness.

When housing becomes unstable, every other part of life suffers. Job performance declines when you do not have a secure place to live. Children’s education is disrupted by frequent moves. Mental health deteriorates under the stress of housing insecurity. These effects ripple through families and communities, deepening inequality and eroding trust in public institutions.

If Ontario’s government proceeds with changes to weaken or by ending rent control, it will be essential to implement strong countermeasures to protect tenants and prevent a surge in homelessness. These measures should include strengthening tenant rights, expanding access to legal support, and enforcing fair eviction processes. The province should also invest in affordable and supportive housing, including rent-geared-to-income units for those most at risk.

Municipalities and advocacy organizations must also play a role by collecting data on evictions and displacement and by offering rental assistance programs that help tenants facing short-term financial hardship. Incentives could be created for landlords who maintain affordable units, balancing profitability with social responsibility. Alternatively, contact your MPP in your riding to discuss your concerns about ending rent control.

The goal of increasing housing supply is important, but it must be pursued responsibly. Ontario cannot build its way out of the housing crisis by removing the few protections that keep people in their homes. Housing should be seen not only as an investment but as a basic human right and a foundation for community stability. Rent control is one of the most effective tools for maintaining that stability. Ending rent control without a comprehensive plan for affordability risks deepening the very crisis the government claims it wants to solve.

Ontario’s housing market needs innovation, but it also needs compassion. Without thoughtful policies that balance development with protection, the province may see more families falling through the cracks. Ending rent control would not just change the market—it could change lives, and not for the better.