OREA urges sweeping reforms to fix Ontario's rental market and boost housing supply
The Ontario Real Estate Association (OREA) has called for a comprehensive overhaul of rental policies and a renewed focus on supply now that the province's rental housing system "is broken."
In its latest policy paper, A Fair Rental Market for a Stronger Ontario, OREA outlined 20 recommendations aimed at modernizing rental laws, repairing the “dysfunctional” Landlord and Tenant Board (LTB), and incentivizing new rental development. The association argued that the current system is failing both tenants and landlords, with families, students, and seniors struggling to secure safe, affordable homes.
“Ontario needs a rental market that is fair, efficient, and keeps the door to homeownership open to everyone who wants to achieve that dream,” OREA President Cathy Polan said. “That means we need more accessible and affordable supply across the housing spectrum so families of every size can find a great place to thrive. Improving Ontario’s rental landscape to make housing more affordable is a key step towards that goal.”
LTB overhaul and new incentives proposed
Among the report’s headline recommendations: a full review and modernization of the Residential Tenancies Act, 2006, a move away from the LTB’s digital-first approach in favor of in-person hearings, and targeted tax incentives for small landlords who add new rental units.
OREA also advocated for expanded mediation services, modeled after British Columbia’s Residential Tenancy Branch, and for updating the Condominium Act to ensure inclusive treatment of diverse families.
A recent Abacus Data survey commissioned by OREA found that 56% of Ontarians viewed the rental market as unbalanced, with high rents, limited unit availability, and poor property conditions cited as top concerns. Only 32% expressed satisfaction with LTB dispute resolution, and nearly 70% supported modernizing the RTA.
Balancing rights and boosting supply
OREA’s recommendations build on its 2022 report, Fighting for Fair Housing, which focused on diversity, equity, and inclusion in the housing sector. The association’s latest proposals aim to rebalance the interests of landlords and tenants while strengthening the overall market.
“As both a landlord and father of renters, I know a fair, balanced rental market is key to housing affordability across the spectrum, and the policy solutions Ontario REALTORS® put forward today will do just that,” OREA CEO Luigi Favaro said.
“This is the Government of Ontario’s chance to address ongoing challenges in the rental market, giving mom-and-pop landlords accessible, timely dispute resolution while also protecting tenants from bad faith evictions and ensuring Ontario’s market has a healthy stock of diverse supply.”
Industry calls for urgent action
The call for reform comes as Ontario faces record-low vacancy rates and surging rents. Housing starts in the province, particularly in the Greater Toronto Area (GTA), have dropped to their lowest level in a decade. The Royal Bank of Canada (RBC) warns this trend threatens to worsen affordability challenges already weighing on households.
Prior to this, OREA and its nine largest Member Boards ramped up its demand for independent oversight of the Real Estate Council of Ontario (RECO), with nearly 100,000 realtors now backing calls for the Ontario Ombudsman to supervise the regulator. They urged the government to prioritize consumer protection and restore trust in the wake of recent scandals.
