Toronto Gets a Pro-Renter Mayor and Ontario Housing Forecast

This week’s top real estate stories.

By  Jared Lindzon | 2 minute read

Every Friday, Wahi brings you the most important real estate stories from the past week.

Toronto’s Got a New, Renter-Friendly Mayor

 Toronto’s leadership limbo came to an end Monday night when Olivia Chow was narrowly elected the city’s next mayor, and the Canadian political veteran has some lofty plans for tackling the city’s housing affordability challenges. If she stays true to her campaign promises residents can expect to see a new Renters Action Committee task force at city hall; a fight with the province to bring back rent control; a $100 million annual Secure Affordable Homes Fund dedicated to preventing renovictions, and an expansion of the Toronto Rent Bank, Eviction Prevention, RentSafeTO and the Tenant Support Program.   

Inflation Is Slowing: Rate Hikes Probably Aren’t

The Bank of Canada has inflation on the ropes, but don’t expect them to throw in the towel just yet. According to Statistics Canada’s latest Consumer Price Index report, prices were up 3.4% in May compared to the same time last year. That’s a big slowdown from the 4.4% increase reported in April, and the smallest rise in prices since inflation entered the ring nearly two years ago. That doesn’t mean the fight is over; following the report economists at banks like BMO and TD suggested the BoC will strike at least one more blow with another hike in July. 

Ontario Housing Market Forecasters Predict a Slow and Steady Second Half of 2023   

Early in 2023 experts predicted the second half of the year to bring a frenzy of activity, but with H2 looming the outlook has changed. In January, economists believed prices in Ontario would continue to fall (they didn’t), interest rate hikes were over (they weren’t), and inflation would be a distant memory (it isn’t). Looking ahead to the second half of the year, TD predicts a decline in home sales, a slight increase in prices followed by a slight decline, and rate cuts starting in early 2024. Given previous predictions, however, maybe take those forecasts with a grain of salt.        

Canada’s Housing Market’s Identity Crisis is Over        

Since interest rate hikes and inflation started rocking the country, its housing market hasn’t acted like the overpriced, understocked, highly competitive, out-of-control mess we’ve all come to know and, well… know. But after some soul searching and some encouragement from a growing population, tight labour market and pandemic-era savings, the country’s housing market appears to be back to its former self. That’s according to a new report by Desjardins, which suggests the period of price correction is over, and our housing market is now back to its old ways — for better or worse.