October 12, 2026 | By Jarrett Hunter, Toronto Realtor®

Toronto’s housing shortage continues to be a major issue heading into the October 26 municipal election, and a new commitment to support the construction of 10,000 rental homes is attracting attention.

On October 8, Mayor Olivia Chow announced that, if re-elected, she would work to advance another 10,000 rental homes through the City’s Rental Housing Supply Program.

The proposal is intended to accelerate rental construction and improve affordability, with at least 20% of the proposed units designated as affordable housing.

But what does this actually mean for Toronto renters, homeowners and investment-property owners?

Why Toronto Needs More Rental Housing

Toronto has struggled for years to produce sufficient housing to meet the needs of its population, particularly rental accommodations suitable for individuals and families.

A substantial portion of the city’s rental supply comes from privately owned condominiums, alongside traditional apartment buildings and other rental properties.

The challenge is that building new rental housing requires significant upfront investment. Construction costs, development charges, financing expenses and project approval timelines can all influence whether a proposed development proceeds.

The new commitment relies in part on existing government-supported incentives intended to reduce some of these costs.

Toronto City Council had already authorized a second phase of its rental housing incentive program supporting up to 10,000 rental homes, including at least 2,000 affordable units. The distinction between approved program capacity and homes actually completed is important.

How Soon Could These Homes Be Available?

Although the announcement suggests that construction on some projects could begin relatively quickly, building a large residential development is not an overnight process.

Projects must secure financing, meet applicable approval requirements, complete construction and obtain the necessary permissions before residents can move in.

Even where construction begins next year, tenants may not see completed apartments for several years.

This is why I believe housing announcements should be evaluated not only by the number of proposed homes, but also by how many projects actually begin construction and reach completion.

What Could This Mean for Condo Investors?

Additional purpose-built rental housing could eventually increase competition for some privately owned rental condominiums.

However, Toronto’s rental market is not one single market.

A well-maintained two-bedroom condominium in an established downtown building serves a different audience from a smaller apartment in a newly constructed rental tower.

Location, building amenities, unit size, maintenance standards and monthly rent will continue to determine how individual properties compete.

For landlords, understanding comparable rental listings and responding to changing tenant expectations will remain important regardless of future construction announcements.

My Perspective

After more than 25 years working in Toronto real estate, I have seen how housing policies and market conditions can influence buying, selling and renting decisions.

I support practical efforts to improve housing availability, but I also believe we need to measure results rather than announcements.

The real test of any housing initiative is whether it delivers completed homes at costs that people can realistically afford.

It is also important to distinguish between affordable housing and market-rate rentals. Both contribute to overall supply, but they address different financial circumstances.

The bottom line: More rental construction could benefit Toronto over the long term, but the impact on affordability and privately owned rental properties will depend on execution, timing and the types of homes ultimately delivered.

Sources: TorontoToday — October 8, 2026 housing announcement and City of Toronto — rental housing incentives and development charges.

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Jarrett Hunter | Realtor® | RE/MAX Your Community Realty | Jarrett.ca