5 Ontario Housing Laws and Regulations Coming Into Effect in 2025

Starting in 2025, several significant housing laws and regulations are set to take effect in Ontario, impacting everyone from builders to buyers and renters. These changes, which include new provincial and municipal legislation, are designed to address housing affordability and availability. Noteworthy changes include updates to the Ontario Building Code and new short-term rental regulations in Toronto, all aimed at responding to ongoing housing challenges.

Rental Renovation License By-Law (Toronto)

One of the most important changes is the introduction of the Rental Renovation Licence By-Law in Toronto. This law targets the practice of “renovictions,” where tenants are evicted under the false pretence of necessary renovations, allowing landlords to raise rents. This practice disproportionately affects low-income and marginalized individuals, often leading to homelessness or unstable living conditions. Under the new by-law, landlords must obtain a Rental Renovation Licence if they issue an N13 notice to end tenancy. To acquire this licence, they must submit approved building permits, pay a $700 application fee (waived for multi-tenant housing operators), and provide a Tenant Accommodation or Compensation Plan, which includes temporary housing for displaced tenants. This law will come into effect on July 31, 2025.

Mass Timber Buildings Up to 18 Storeys (Ontario)

Another significant update is the approval of mass timber buildings up to 18 storeys in Ontario. Mass timber, a sustainable and cost-effective material, has gained popularity for its potential to reduce construction costs and time. The new regulation, which is part of an amendment to the Ontario Building Code, allows mass timber buildings to rise up to 18 storeys, an increase from the previous 12-storey limit. This change is intended to help increase the supply of housing and lower construction costs while supporting local jobs in forestry and manufacturing. This update is already in effect as of January 1, 2025.

Additional Ontario Building Code Amendments (Ontario)

Additionally, there are updates to the Ontario Building Code aimed at reducing regulatory barriers for developers. The new code, which came into effect on January 1, 2025, streamlines processes and brings Ontario’s regulations closer to the National Construction Codes. These amendments eliminate over 1,700 technical variations between provincial and national standards, making it easier for developers to meet housing goals. A three-month grace period will be in place until March 31, 2025, for certain ongoing designs.

New Short-Term Rental By-Laws (Toronto)

Toronto is also introducing new short-term rental by-laws in 2025. The city defines short-term rentals as properties rented out for less than 28 consecutive days. The final phase of these by-laws will ensure that only primary residences can be rented out by licensed operators. This phase includes changes such as an increase in the registration fee for short-term rental operators to $375 and stricter rules for partial-unit rentals. These regulations will be enforced starting January 1, 2025.

Updates to Household and High Need Income Limits (Ontario)

Finally, updates to the Household and High Need Income Limits (HILs and HNILs) are being implemented to better reflect current data on housing affordability. These limits determine who qualifies for housing assistance. The recent amendments to the Housing Services Act of 2011 ensure that these limits are aligned with the latest data from the Canada Mortgage and Housing Corporation. For example, in Toronto, the High Need Income Limit for one-bedroom units will increase from $37,500 to $40,500, and in Durham Region and Hamilton, it will rise from $27,600 to $30,300. These adjustments will help better address the needs of individuals and families requiring housing assistance.