Housing research paper

Analysis of Rental Demolition and Replacement in Toronto Student Name Institution Professor Name Course Date Analysis of Rental Demolition and Replacement in Toronto The housing landscape of Toronto is characterized by a rich market dynamic, appropriated policies, and demographic shifts that contribute to an emergence of issues such as the affordability, accessibility, and sustainability of rental housing. The city is dynamic and fast-growing and is confronted with rising housing needs and a diminishing source of affordable rental apartments. This circumstance is made worse by the financialization of housing in which apartments are transformed into deposits for an investment transaction rather than essential human needs (Walberg, 2023). Against this background, gentrification alters neighborhoods, often resulting in the eviction of less privileged locals and decreased available rentals. In this context, the development plans at 1423-1437 Bloor Street West and 278 Sterling Road can be seen as an illustration of today’s urban development practices and the innermost secrets they hold for the rental housing market (Walberg, 2023). The building project, council-approved, consists of an 18-storey mixed-use development with a 6-storey podium, covering a Gross Floor Area of 14’635 square meters in total. Of the 180 planned residential dwelling units, 17 are set aside as rental units (Walberg, 2023). This development is not a construction project but part of a more complex Toronto housing market process that includes razing rental units and erecting new ones. This essay aims to review the rental demolition and replacement case critically, evident in the development of 1423-1437 Bloor Street West and 278 Sterling Road. The study will be done through the lens of Toronto’s housing policies, the financialization of housing, gentrification, and the pursuit of equitable development plans. This article examines urban expansion and its impact on Toronto’s rental housing market and proposes policy and practice changes to promote fairness and sustainability. Figure SEQ Figure \* ARABIC 1: Before Demolition Source: Google map Figure SEQ Figure \* ARABIC 2: After the Proposed Demolition Source: https://urbantoronto.ca/news/2021/05/kingsett-proposes-18-storeys-bloor-junction-triangle.44995 Literature Review: Rental Housing Dynamics in Toronto In Davenport, the total population decreased by 3.4%, the median total individual income increased by 36.6%, and outpacing Toronto’s 30.1% increase over the same period. This change suggests growing income inequality within the Davenport area. The rental market data reveals concerning trends. Although the number of rented dwellings decreased slightly in Davenport (-0.8%), it increased by 6.1% in Toronto, indicating higher rental demand in the city overall. According to McDonough et al. (2015), “the Toronto region suffers from a lack of affordable rental units and home-ownership options” (p. 17). Significantly, both median dwelling values and average rents increased much faster in Davenport (20.5% and 26.6%, respectively) compared to Toronto (21.2% and 25.8%). This disproportionate increase suggests that rental housing in Davenport may be becoming less affordable for the local population. The educational attainment data shows a stark difference between Davenport and Toronto. In 2021, 57.7% of Davenport residents had a postsecondary certificate, diploma or degree, compared to 62.4% in Toronto. Davenport (20.6%) had a greater rate of unregistered students than Toronto (14.3%). McDonough et al. (2015) assert that those who are registered graduate “with high levels of student debt” (p. 8). This academic discrepancy may worsen Davenport’s financial and housing issues. Housing Policy Evolution and Funding Over time, Toronto's housing policy has shifted toward market-based solutions. Affordable housing development and operation initially relied on public funding and government engagement. Gaetz et al. (2013) report that governments have retreated from these duties, leaving housing provision to the private sector and market. These laws have encouraged private developers to add affordable housing units to their developments, albeit without much success (Gaetz et al., 2013). The number of rental homes in Toronto climbed 6.1% from 2016-2021, whereas it fell 0.8% in Davenport. This scenario implies a more robust city rental demand than Davenport. In Davenport, median housing prices jumped 20.5%, and average rents rose 26.6%, exceeding Toronto's 21.2% and 25.8% rises. Due to market-oriented housing policies that have moved away from government-provided affordable housing, housing costs have grown faster than rental availability. Planning Policies and their Impacts Toronto's zoning and development laws significantly impact the rental market. Zoning rules govern land use and development and can impact rental housing availability and distribution (Hulchanski, 2007). The zoning by-laws of the city have been receiving harsh criticism lately due to being overly restrictive and limiting the density of residential developments to many areas, which hurt rental supply. Data reveals a shift from lower-density housing like single-detached and semi-detached homes towards higher-density apartment buildings in Davenport and Toronto from 2016-2021. For example, the number of apartment units in buildings with 5+ storeys increased by 13.4% in Davenport and 10% citywide. This increase supports the claim that tight zoning ordinances hinder lower-density dwelling production (McDonough et al., 2015). While the data shows a significant rent rise, this densification might exacerbate rental affordability without inclusionary zoning regulations requiring affordable rental units in new constructions. Gentrification and Financialization of Housing Gentrification and housing financialization have produced a tight-knit complex that has transformed Toronto. Gentrification, caused by wealthy people moving into poorer neighborhoods, continuously expels the current population and reduces affordable housing (Walks, 2013). Data provides several indicators pointing to gentrification pressures and the financialization of housing impacting rental affordability in Davenport compared to Toronto as a whole. A key signal is income polarization, with the median total individual income increasing by 36.6% in Davenport from 2016-2021, outpacing Toronto's 30.1% growth, suggesting an inflow of higher-income groups (McDonough et al., 2015). Rental costs show a disproportionate increase, with median dwelling values rising 20.5% and average rents jumping 26.6% in Davenport, compared to 21.2% and 25.8%, respectively, across Toronto, exemplifying rental housing becoming treated as an investment vehicle whose value is expected to increase rapidly. Furthermore, the number of rented dwellings decreased by 0.8% in Davenport while increasing by 6.1% citywide, indicating affordable rental units are being lost in Davenport and not being replenished at the same rate, likely due to redevelopment into higher-end housing aligned with gentrification and investment models (Walks, 2013). This income polarization, disproportionate rent inflation, and contracting rental housing stock depict gentrification taking hold in Davenport, likely spurred by housing financialization treating property as an investment vehicle, which aligns with criticisms that these forces reduce affordable rental options and displace long-term residents priced out by heightened housing costs in gentrifying neighborhoods. Problem Identification The phenomenon of rental demolitions and replacements in Toronto can be viewed as the embodiment of housing policy problems throughout the city. In their quest, developers tend to replace the cheap and affordable rental properties that have been demolished to make room for the new, more dense constructions. Redeveloping older, less efficient buildings can increase the overall housing supply. As new projects for higher-income tenants replace older apartments, inexpensive rental spaces typically disappear. This troubling tendency lowers housing availability and fosters gentrification, displacing residents and changing neighborhood demographics. Toronto must provide cheap, dependable, and ecologically sustainable rental housing due to housing policy evolution, planning regulations, gentrification, and housing financialization. The demolition and replacement of rental houses illustrate the necessity for regulations that balance development and investment interests with the irreplaceable possibility of increasing and protecting the city’s affordable housing. Policy Review City of Toronto’s Rental Replacement and Demolition By-law The rental housing demolition and conversion bylaw requires that any redevelopment that results in the demolition or conversion of the rental units should provide the same number of units in the same neighborhood. This provision is vital to sustain the stock of rental homes, including those that are affordable for low and medium-income families (Clark, 2023). The bylaw states that the replacement units must be the same size as the typical properties in that area of the city, and the rent should be no more than the previously charged, adjusted for inflation and market changes since the time of the original lease agreement (Clark, 2023). Also, the developers must give the displaced tenants the same conditions they were in the old units to return when finished. Additionally, the bylaw provides options for tenants to be compensated, such as relocation assistance and financial compensation to support those living in the building being demolished or converted (Clark, 2023). Compensation rates and terms are set depending on rental duration and household size to prevent renters from losing out as devel...