As 2025 begins, significant changes are coming to Ontario’s housing landscape. From enhancing tenant protections to embracing sustainable construction, these updates aim to address ongoing challenges in affordability, availability, and fairness. Here’s a look at five key housing laws and regulations taking effect this year.
1. Toronto’s New Rental Renovation Licence By-Law
This by-law is designed to prevent “renovictions,” a practice where landlords evict tenants under the guise of renovations, only to re-list units at higher rents. These actions disproportionately affect low-income and marginalized individuals, often leaving them in precarious housing situations.
To address this, landlords issuing an N13 notice to end a tenancy for renovations must now secure a Rental Renovation Licence. Requirements include:
Approved building permits.
A $700 application fee (waived for Multi-Tenant Housing Operators).
A Tenant Accommodation or Compensation Plan that provides temporary housing or other supports.
When it takes effect: July 31, 2025.
2. Mass Timber Buildings Can Now Reach 18 Storeys
Mass timber construction, known for its sustainability and cost efficiency, is getting a boost with changes to the Ontario Building Code. Developers can now construct buildings as tall as 18 storeys using this innovative material, compared to the previous limit of 12 storeys.
Mass timber is celebrated for its strength, fire resistance, and environmental benefits, making it a popular choice for urban developments. These changes aim to accelerate housing construction while supporting jobs in forestry, engineering, and manufacturing.
When it took effect: January 1, 2025.
3. A Streamlined Ontario Building Code
Ontario’s updated building code simplifies construction processes and aligns more closely with the National Building Code. This harmonization eliminates unnecessary technical differences, reducing barriers for developers and making it easier to meet housing targets.
The updated code resolves over 1,730 variations between provincial and national standards, increasing alignment from 60% to 80%. A three-month grace period is in place for projects already underway under the old code.
When it took effect: January 1, 2025 (grace period ends March 31, 2025).
4. Toronto’s Final Phase of Short-Term Rental By-Laws
Toronto’s efforts to regulate short-term rentals have entered their final phase. These measures aim to preserve long-term rental housing and ensure only primary residences are used for short-term rentals.
The latest rules include:
Increased registration fees of $375 for short-term rental operators.
Operators must register as either entire-unit or partial-unit short-term rental operators.
Partial-unit operators can only rent out one fewer than the total number of bedrooms available in their principal residence and cannot rent the entire dwelling at once.
When it took effect: January 1, 2025.
5. Updates to Household and High Need Income Limits
Income limits for housing assistance have been updated to reflect current data. These limits determine eligibility for support, helping ensure resources are directed to those most in need.
Household Income Limits (HILs) represent the minimum income required to afford housing without spending more than 30% of it on shelter. High Need Income Limits (HNILs) reflect households spending 50% or more of their income on housing.
For example, HNILs for one-bedroom units in Toronto increased from $37,500 to $40,500, while similar adjustments were made in other regions like Durham and Hamilton.
When it took effect: January 1, 2025.
These changes reflect Ontario’s commitment to tackling housing affordability, protecting renters, and supporting sustainable construction. Whether you’re a renter, landlord, or developer, these new rules are set to reshape the housing market in meaningful ways.
