Toronto asked to tackle ‘Manhattanization’ of downtown

Report finds ‘shocking’ rise in monthly rental costs as standard lease unveiled

Toronto renters lucky enough to find a home last year faced an “absolutely shocking” spike in monthly costs, according to new figures that have some city councillors calling for urgent action to halt the “Manhattanization” of downtown.

Councillor Josh Matlow moved the motion at a tenant issues’ committee meeting Friday, after staff presented findings that indicate Toronto is becoming “more and more, simply a playground for the rich,” Matlow said.

In 2017, apartment rental units saw the largest increase in rent prices in 15 years, with a two-bedroom unit costing on average $1,426 a month, according to a city-commissioned study.

Two-bedroom condominium rental units also saw a jump in price in 2017, on average surpassing the $2,400 a month mark, staff said. At less than 1 per cent, the vacancy rate reached its lowest point in 16 years.

“The numbers in here are absolutely shocking and the degree to which it has worsened over the past few years is frightening,” said Councillor Janet Davis. “As we Manhattanize, we are building a city of inequalities, deepening inequalities.”

The study looked at the low end of the rental housing market. It found that if low-income residents spend 30 per cent of their $30,000 annual income on housing and receive a $250 monthly housing subsidy through the city, they still can only cover 60 per cent of rent based on average market prices, city planner Rishab Mehan told the committee.

The solution to Toronto’s housing affordability problem isn’t through private development and building more condo units, Councillor Gord Perks said.

Toronto has to make an investment in affordable housing and can use its hundreds of millions of dollars in land transfer tax revenue to do so, he said, adding the land transfer tax is “wealth captured in a booming real estate market.”.

“We, as a government, are not applying any of it back to making Toronto affordable.”

Staff will report a strategy across divisions to make rental housing more affordable at the first committee meeting in 2019.

A low vacancy rate affects tenants because it strengthens the power of landlords, said Dania, Majid, a staff lawyer with Advocacy Centre for Tenants Ontario.

Majid worked closely with the province to develop a standard lease that all landlords will be required to use starting April 30.

“It’s an improvement to what . . . existed, and, going forward, it will better inform tenants and landlords of their rights and responsibilities,” said Majid, who noted landlords can take a “Wild-West approach” and “craft anything that suits their needs and purposes. In many cases, tenants are complying with clauses that are illegal and impact the reasonable enjoyment of their unit.”

The standard lease form applies to all rental agreements for single and semi-detached homes, apartment buildings, rented condos and basement apartments, the Ministry of Housing said in a statement.