In 2021, renters across Ontario got something rare in today’s housing market: a pause. Under Bill 204, the provincial government implemented a one-year freeze on most rent increases for units covered by the Residential Tenancies Act (RTA). On paper, a 0% increase might seem modest, but for many tenants including seniors, students, newcomers, and low income families, it translated into meaningful relief during a time of pandemic-driven economic instability.
The pause highlighted a broader truth, that rent control (when properly structured), is not just a regulatory tool but a lifeline.
When tenants know their rent won’t suddenly spike, they can budget with confidence, save for the future, or direct limited resources to other essentials. For people living on fixed or precarious incomes, like retirees, part-time workers, or those who are disabled, this predictability is often the difference between staying housed and facing displacement.
Without limits on rent increases, landlords may raise rents steeply - not unlike concealed evictions. Over time, these increases quietly push long-term tenants out simply by making their homes unaffordable. Rent regulation interrupts that pattern. It helps keep communities intact, allowing people to stay rooted where they live, work, go to school or raise families.
Large-scale housing developments take years to plan and build. Rent regulation, on the other hand, can offer a near-immediate support using existing laws and infrastructure. In crisis moments, like a pandemic, that kind of swift protection is needed.
Bill 204’s rent freeze applied to a large number of rental units: homes, apartments, basement units, many condos, care homes, and rent-gear-to-income community housing. For many tenants, this meant a temporary reprieve from sudden rent hikes.
The freeze was not perfect. The legislation allowed landlords to apply for what are known as "above-guidelines increase” (AGIs). For example, when they undertake major repairs, renovations or security upgrades. These expectations meant that some tenants, particularly those in older or poorly-maintained buildings, still saw rent increases during or shortly after the freeze.
The freeze also only covered existing tenants. Once a unit turned over, landlords could set a new tenancy’s rent at market rate. This loophole - often called “vacancy decontrol”- remains one of the biggest structural weaknesses in Ontario’s rent-regulation system.
So while Bill 204 offered many relief, it also showed that rent regulation now is ignoring a large population of people who still need it.
Well-designed rent regulation can deliver lasting benefits, beyond crisis relief. To build on what Bill 204 started, rent regulation must be reformed and expanded:
Rent control will not solve Canada’s housing crisis, but the 2021 freeze showed how powerful it can be to provide immediate, meaningful protection, giving people breathing room when they need it most.
When paired with proactive housing policy, support for affordability and protections against exploitative practices, rent control can help preserve housing stability and dignity for tens of thousands.
In today’s world, housing costs are climbing faster than incomes. Rent control is not just a good policy, it can be the only thing standing between a stable home and displacement.
References
https://www.ola.org/en/legislative-business/bills/parliament-42/session-1/bill-204
%20(1).png)
