FOR IMMEDIATE RELEASE
TORONTO, ON – Ontario’s 2026 budget arrives at a critical moment, as renters across the province continue to face rising housing costs and deepening financial strain. The budget fails to address housing, particularly rent relief in the midst of an affordable housing crisis.
Last year’s budget claimed to mitigate the impacts of trade tariffs through targeted support and funds designed to help affected businesses and workers. These economic pressures persist till this day with a deficit of $14 billion for 2026-2027, while Ontario’s unemployment rate reached 7.6% in February 2026. As job security weakens, so too does people’s ability to afford housing. However, Ontario’s response to renters was the passing of Bill 60, which is expected to accelerate evictions and increase renter displacement. By weakening tenant protections and limiting renters’ ability to challenge unsafe conditions, the legislation risks pushing more people into precarious housing and homelessness.
Data from 2025 Renter Feedback Survey, shows that more than 62% of Canadian renters spend over 30% of their income on housing, including 24.9% of subsidized renters and 40.2% of non-subsidized renters, highlighting that affordability challenges span the entire housing system. Under current conditions, known homelessness in Ontario is projected to reach approximately 177,000 people province-wide by 2035. In a worsening economic scenario, marked by rising unemployment and growing deficits, this number is projected to exceed 297,000.
In yesterday’s announcement, $300 million was allocated to launch a housing initiative with High Art Capital to fund the conversion of about 2,200 newly built condominium units into long-term rental housing, including approximately 550 affordable units. While these investments are welcome, the allocation of only 550 affordable units falls short of reflecting the scale of affordable units needed to address Ontario’s growing housing crisis, particularly when it comes to supportive and deeply affordable housing.
The government also announced a 8% HST rebate for people buying newly built homes for home ownership or investment, valued at up to $1.5 million in tax relief. The average Ontarian can barely keep up with rising rents, let alone afford to buy a house. Without rent controls in place, this new housing is at risk of being purchased by financialized landlords that often engage in rent gouging and bad faith evictions. Secondly, the rental units purchased will likely be owner occupied units. The issue with this is they can easily shift from rentals to owner-occupied homes, making this a very precarious way of increasing rental housing stock. These public funds would be better allocated to strengthening critical rent supports such as the Canada-Ontario Housing Benefit (COHB), which helps low-income renters remain housed. At a time of economic uncertainty, lack of sustained investment in affordable housing combined with other short-term solutions puts more households at risk of housing instability and homelessness.
We are calling on the province to recognize that renters are an ever increasing and important part of our society, and they need to deliver solutions that keep them adequately housed. Underinvestment in affordable housing or providing tax breaks to home buyers will not improve housing stability. Without a significant expansion of supportive and deeply affordable housing, full rent controls, and strengthening renters’ rights by revoking Bill 60, more households will face displacement with nowhere to turn.
Media Contact:
Ukeme Ebong (she/her)
Communications and Public Affairs Specialist
ukeme.ebong@acto.clcj.ca
Advocacy Centre for Tenants Ontario (ACTO)