The City has an important role in providing and maintaining a diverse range of housing in terms of building form, tenure and affordability. The City conducts research and analysis to inform the development of housing policies that preserve and increase the supply of affordable and rental housing. Through development review, the City also secures new affordable housing and protects the rental housing stock.
Developments involving the demolition or conversion of six or more residential units, including at least one rental unit, require approval under the City’s Rental Demolition and Conversion Control By-law. Through its review of development applications, the City implements Official Plan housing policies related to demolition and/or conversion of existing rental housing.
Here you will find additional information relating to the demolition and replacement of private-market rental housing for sites with six or more rental units.
After the demolition application is approved by the City Council, you will be given at least four months’ notice to vacate your rental unit when demolition is close to occurring.
You may be eligible for compensation above what is currently required by the Residential Tenancies Act. Tenant assistance plans are discussed with tenants in advance of rental housing demolition applications being considered by City Council, and are secured through a legal agreement that binds current and future owners of the land.
This compensation typically includes a moving allowance and financial compensation based on the rent you currently pay.
If the right to return applies, you will be sent a notice of your eligibility along with your notice to vacate before the demolition. This will allow you to sign up for a replacement unit.
If you decide to move into a new replacement unit, your rent will be similar to the rent that you currently pay. Once you return, your rent cannot be increased by more than the annual rent increase guideline amount set by the Ontario government until your tenancy ends.
For comments or questions about the application to demolish your unit or building, you should contact your property manager. You can also contact the City of Toronto Planner managing the demolition application review. Their name and contact information can be found on any City notice that you have received about the demolition application for your building.
Some tenants may qualify for more support based on special needs. You can speak with the City of Toronto Planner managing the demolition application if you would like to discuss your need for additional assistance.
City Planning staff work with other City divisions and agencies, and a range of stakeholders to review and update the City’s Official Plan housing policies. Recent Official Plan housing policy changes include: new policies to require developments around transit stations to include affordable housing (Inclusionary Zoning), updated definitions of affordable housing that incorporate an income-based approach, and policies that require replacement rental housing to address the loss of dwelling rooms.
Affordable Rental housing means housing where the total monthly shelter cost (gross monthly rent, inclusive of utilities for heat, hydro, hot water and water) is at or below the lesser of one times the average City of Toronto rent, by dwelling unit type, as reported annually by the Canada Mortgage and Housing Corporation, or 30 per cent of the before-tax monthly income of renter households in the City of Toronto as follows:
Indicator incomes are calculated by adjusting 2020 indicator incomes (as reported by the 2021 Census) for changes to the Consumer Price Index as reported by Statistics Canada for the Toronto Census Metropolitan Area—139.9 as of January 1, 2020 and 165.0 as of January 1, 2025.
| Unit Type | Indicator Income | Rents Based on Income | Rents based on AMR | Affordable Rents |
| Studio | $44,346 | $1,109 | $1,456 | $1,109 |
| 1-bedroom | $56,140 | $1,404 | $1,715 | $1,404 |
| 2-bedroom | $103,788 | $2,595 | $1,985 | $1,985 |
| 3-bedroom | $112,044 | $2,801 | $2,257 | $2,257 |
Mid-range rents (affordable) are the total monthly shelter costs that exceed Affordable rents but are at or below 100 per cent of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation.
Mid-Range rents (Moderate) are the total monthly shelter costs that exceed Affordable rents and/or Mid-range rents (affordable) but are at or below 150 per cent of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation.
| Unit Type | Mid-Range (Affordable)
Rent Limits |
Mid-Range (Moderate)
Rent limits |
Above Mid-Range Rents |
| Studio | $1,456 | $2,184 | $2,185 or more |
| 1-Bedroom | $1,715 | $2,572 | $2,573 or more |
| 2-Bedroom | $1,985 | $2,977 | $2,978 or more |
| 3-Bedroom | $2,257 | $3,385 | $3,386 or more |
Dwelling room means a room used as living accommodation that is available for rent and that is not self-contained. A dwelling room may contain private sanitary facilities or cooking facilities, but not both. A dwelling room, for the purposes of this [Official Plan] policy, excludes living accommodation exempted from the application of the Residential Tenancies Act, or successor legislation.
Four dwelling room rent threshold tiers are defined in the Official Plan, including two affordable rent tiers and two mid-range rent tiers. Rents are based on a percentage of the average City of Toronto rent for a studio unit as reported annually by the Canada Mortgage and Housing Corporation (CMHC). The thresholds and the associated 2025 rent levels are detailed in the table below.
| Dwelling Room Rent Tier | Rent range as a % of the CMHC average City of Toronto rent for studio unit | 2025 Dwelling Room Rent Limits |
| Affordable Tier One | 60% or lower | $873 |
| Affordable Tier Two | 61% to 80% | $1,164 |
| Mid-Range Tier One | 81% to 100% | $1,456 |
| Mid-Range Tier Two | 101% to 120% | $1,747 |
Affordable ownership housing means housing where the purchase price (which for new units is inclusive of Harmonized Sales Tax payable by the purchaser) is at or below an amount where the total monthly shelter cost (mortgage principal and interest – based on a 25-year amortization, 10 per cent down payment and the mortgage rate for a conventional 5-year mortgage as reported by the Bank of Canada in January of the applicable year, and a mortgage insurance premium – plus property taxes calculated on a monthly basis based on the purchase price, and standard condominium fees) is affordable, based on paying no more than 30 per cent of before-tax monthly income, to all households in the City of Toronto as follows:
Indicator incomes are calculated by adjusting 2020 indicator incomes (as reported by the 2021 Census) for changes to the Consumer Price Index as reported by Statistics Canada for the Toronto Census Metropolitan Area—139.9 as of January 1, 2020 and 165 as of January 1, 2025.
The interest rate used to calculate the 2025 affordable ownership prices is as reported by the Bank of Canada 5 Year Rate of 6.49 per cent on January 1, 2025.
| Unit Type | Standard Condominium Fees | Indicator Income | Affordable Price Limit (inclusive of HST) |
| Studio | $318 | $63,688 | $186,282 |
| 1-Bedroom | $474 | $80,790 | $226,108 |
| 2-Bedroom | $580 | $100,250 | $281,695 |
| 3-Bedroom | $800 | $121,480 | $327,137 |
The reported 2025 prices are subject to change based on final education property tax rates and a review of typical maintenance fees.
