Rooming Houses

Building more supply is a common solution proposed to address the housing affordability crisis we face in Toronto, but the type of supply permitted and built will have an impact on who can afford to continue living in the city. As rents continue to increase while wages remain stagnant, the country sees record-high population growth, and the federal government plans to bring in 1.5 million immigrants by 2025, housing affordability will continue to be a pressing issue, and a range of bold and ambitious solutions is necessary. One of these solutions is rooming houses โ€“ an essential form of affordable housing that has been overlooked. Toronto City Council has recently developed a framework to enable rooming houses to be a more feasible and widespread solution across the city.

Rooming houses are multi-tenant buildings that provide a group of bedrooms that are rented out to different tenants, who share common spaces such as bathrooms and kitchens. This type of housing is often cheaper and can provide a sense of community as tenants share common spaces and interact with each other. As a result of old and inconsistent bylaws that have not been updated since amalgamation in 1998, city regulations only allowed rooming houses in certain areas: the old city of Toronto, Etobicoke, and York. Most rooming houses are in Parkdale, the Annex, Kensington Market, Chinatown, Moss Park and Cabbagetown.

Unlicensed multi-tenant living spaces exist in other areas of the city, in basements of dwellings occupied by homeowners or rooms rented out by homeowners looking to cover mortgage and other ownership costs. Given the limited availability of licensed rooming houses, these spaces are often the only affordable housing option for newcomers, students, and low-income residents. Residents who live in these unlicensed spaces cannot make official complaints or exercise the same rights as other tenants, leaving them vulnerable to substandard housing and potential abuse.

After consultation with stakeholders and residents, Toronto City Council adopted a new regulatory framework in December 2022 that allows rooming houses in all residential areas across the city, which will come into effect in 2024. This framework aims to support safe, livable and affordable multi-tenant housing, and provides other larger benefits. Owners of licensed multi-tenant housing can apply for building permits and grants to improve or expand the units, taxes on the property could go towards more services for residents, and census counts would more accurately represent the number of people living in each community.

This change comes at an especially important time. Existing renters in the city are already facing a precarious housing market, with rents that landlords can increase as much as they want, and a lack of affordable housing options. Many younger people have resorted to living with roommates โ€“ more than ever before. According to data from the 2021 census, roommate households have grown faster than any other housing agreement since 2001, particularly for those between the ages of 20 to 34. Despite this option, renters are still much more likely than homeowners to be in core housing need (30%, compared to 10% of homeowners). To make Toronto a place where everyone can thrive, solutions that aim to benefit those who are most at risk of unstable, unsuitable, and unaffordable housing have to be prioritized.

Written by: Research Assistant Natalie Pilla | LinkedIn

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