Toronto’s Housing Crisis: A Deep Dive into 2023’s Wins and Challenges
Toronto’s housing crisis has reached alarming heights, leaving many residents grappling with the harsh choice between paying rent and buying food. A recent report indicated that one in ten Torontonians now rely on food banks, highlighting the critical intersection between housing affordability and food security. Amid these challenges, some advocates believe that the crisis may catalyze meaningful change, as echoed by Mark Richardson, the technical lead for Housing NowTO: "It sometimes takes a crisis for people to start taking the solution seriously."
As Toronto continues to maneuver through the complexities of housing shortages, affordable housing advocates and experts have identified significant progress in 2023, while also pointing out areas that require more urgent attention. Here’s a closer look at the wins and ongoing challenges in addressing Toronto’s housing crisis.
Major Wins in 2023
1. Elimination of GST and HST on Purpose-Built Rentals
In a pivotal move this fall, the federal and provincial governments announced the elimination of GST and HST on new purpose-built rental housing. This policy aims to stimulate the development of affordable rental units. Eric Lombardi, a housing advocate with More Neighbours Toronto, emphasized that this change would enhance competitiveness in building, ultimately fostering more affordable housing options.
Mwarigha, vice president at WoodGreen Community Services, also lauded this initiative, stating that purpose-built rentals are essential for spreading affordability across different renter demographics. With developers potentially pivoting towards purpose-built units in 2024, the elimination of these taxes represents a significant step towards alleviating the housing crisis.
2. Housing Accelerator Fund
The federal government’s Housing Accelerator Fund, introduced in the 2022 budget with a commitment of $4 billion, came into sharper focus in 2023. Federal housing minister Sean Fraser has taken a proactive role, encouraging municipalities to adopt housing reform policies that would facilitate access to this funding. This initiative could prove vital for cities struggling to balance development needs with housing availability.
Despite the benefits of the Housing Accelerator Fund, Mwarigha cautioned that it should not place the burden solely on municipalities. A cohesive effort across all levels of government is necessary for genuine progress.
3. Zoning Changes
November 2022 saw the introduction of Bill 23 in Ontario, which allowed for the construction of triplexes without rezoning in many areas. By 2023, municipalities like Toronto and Mississauga expanded this initiative to include fourplexes. These zoning changes have been met with enthusiasm from advocates who believe they will enable greater densification in predominantly single-family neighborhoods, increasing the number of available housing units.
Lombardi argued that there’s still potential for improvement in allowing more dense construction beyond just fourplexes. He called for broader changes, particularly in areas that currently restrict mid-rise buildings.
4. Electing Olivia Chow as Mayor
June 2023 marked the election of Olivia Chow as Toronto’s mayor, a significant turning point in the city’s housing discourse. Chow’s administration promptly increased affordable housing targets from 50,000 to 65,000 new units by 2030. This aggressive target represents a stronger commitment to addressing Toronto’s housing challenges compared to her predecessor.
Advocates have expressed optimism that Chow’s housing plan will leverage public, private, and non-profit sector contributions toward meaningful solutions. However, there is hope that her team will act swiftly, as previous commitments have often faced delays.
Missed Opportunities
1. Slow Development of Transitional and Supportive Housing
Despite the Ontario government’s commitment of an additional $202 million to prevent homelessness, housing advocates argue that the pace of developing transitional and supportive housing remains sluggish. A key example is the city’s inquiry into a site for supportive housing in Willowdale, which still awaits necessary approvals from the provincial level. Advocates feel that more decisive action could expedite this much-needed project.
2. Selling Land Without Affordability Requirements
The Ontario government has made surplus land available for development alongside transit projects. However, the absence of affordability requirements for these developments has drawn ire from housing advocates. Richardson has voiced frustration over missed opportunities to incorporate affordable housing into prime transit-adjacent properties.
3. Maintaining Affordable Rent
Although the Ontario government capped rent increases at 2.5% for 2023, the broader issue of preserving affordable rental units continues to loom large. The lack of rent control for units built after 2018 has sparked concern among residents and advocates, with calls for reinstating protections. Mwarigha highlighted the increasing pressures on renters, noting that many face insecurity around lease renewals and frequent rent hikes.
What Lies Ahead in 2024?
As the new year approaches, many households remain burdened by high living costs, compounded by persistent fears of losing stable housing. Nonetheless, there is cautious optimism regarding the federal and provincial governments’ direction toward increasing housing supply and affordability.
2024 promises to unveil how municipalities will engage with the Housing Accelerator Fund and whether they will secure essential financial resources. Mwarigha aptly summarized the urgency of the situation: "We need to start running, like how you run a marathon."
The road ahead remains challenging, but with advocacy, accountability, and committed leadership, Toronto may yet find pathways to an improved housing landscape. For residents engaged in the struggle for affordable housing, hope and vigilance will be critical in the ongoing quest for solutions.
