Realtors often get blamed for really heated markets. While we wish we had that much power, we don’t. Blaming real estate agents for a tight market is like blaming lawyers for the divorce rates. We are the medium, yes, but not the cause. With this in mind, while we love working in a tight seller’s market, we are also always aware of the side effects that a low housing supply has on renters. Renters are a really important component to a healthy city because long-term rental properties allow people who can’t afford to purchase property in the city to live downtown. A healthy city is a diverse city and long-term rental properties allows for diversity, it’s that simple.

The vacancy rate in Toronto is currently sitting at about 1.1 per cent. Economists suggest that a healthy vacancy rate for a city is closer to 3 per cent. It is very difficult to find a rental property in Toronto and when you do, the competition for that unit will be stiff and the price will be high.

Last week, the Ontario tribunal upheld the city of Toronto’s new rules to limit short term rentals. The main change is that landlords can only rent out their primary residence as a short term rental and only for a total of 180 days per year. This means that landlords in Toronto can no longer rent out secondary residences as short-term rentals. Homeowners can also opt to rent out up to three individual bedrooms in their primary residence year-round on a short-term basis (28 days or less) and homeowners wishing to rent out their primary residence on a short-term basis must register with the city and get a licence.

Proponents of this change estimate that this could return approximately 5000 units back to the long-term rental market. This is a huge win for renters and for Toronto as a whole.