If you’re renting, buying, or owning in Ontario, 2025 is shaping up to be a turning point for the housing market. On one hand, the province is moving to end evergreen leases (the type of tenancy that renews automatically). On the other, the government has introduced new legislation aimed at building homes and infrastructure faster.
So what’s going on? And more importantly, what does it mean for you? Let’s walk through this together.
What’s Happening: Two Major Changes
1. Evergreen Leases May Be Ending
Currently, many Ontario tenants on a fixed-term lease (for example, one year) automatically roll into a month-to-month lease if neither party takes action. These are called “evergreen leases.”
The proposed change would remove or reduce that automatic rollover. According to reports, this could effectively end rent control.
In simple terms, landlords would have more control at the end of each lease, while tenants could face more frequent renegotiations and less stability.
Here’s what that means in practice:
- Landlords could require a new lease at the end of every fixed term.
- Tenants may lose the option to continue renting under the same terms once the term ends.
- Rent increases or non-renewals could become more common.
Tenant advocacy groups have expressed concern that this change could weaken housing stability and make it harder for renters to plan long-term.
2. Legislation to Build Homes and Infrastructure Faster
At the same time, the province announced the Fighting Delays, Building Faster Act, 2025, a bill designed to speed up housing and infrastructure projects.
According to the Ontario government, the new legislation aims to:
- Cut down on red tape and delays for housing developments.
- Simplify approvals for building permits and infrastructure projects.
- Encourage more rental construction and affordable housing.
This initiative is part of Ontario’s broader effort to increase housing supply, reduce wait times, and support the goal of building 1.5 million new homes by 2031.
In short, the province wants to make it easier to build faster and house more people.
Why These Changes Matter
At first glance, lease policy and construction legislation might seem unrelated. But they connect in important ways.
Ending evergreen leases changes how tenants experience stability and rent protection. Meanwhile, the new housing bill focuses on increasing supply.
Here’s the link:
- When tenants lose automatic lease renewal, turnover rises.
- More turnover can mean more rental listings, but also higher rents for new tenants.
- Faster construction could add new housing supply, which may help balance the market.
In theory, the government is trading off short-term renter security for long-term housing growth. Whether that works depends on how quickly new housing actually arrives.
Who Gains, Who Risks, and What to Watch
Let’s look at how these changes could affect you, depending on where you are in your housing journey.
| Group | Potential Benefits | Possible Risks | Action Steps |
| Tenants | – More new rental units in coming years. – Chance to renegotiate lease terms. | – Less security as evergreen leases end. – Higher rent on renewal. – More frequent moves. | – Review lease terms and expiry dates. – Negotiate longer leases. – Stay updated on tenancy laws. |
| Buyers | – More homes may enter the market over time. – Better infrastructure and transit options. – Potential for stable long-term value. | – Short-term price competition may remain high. – Construction delays could slow benefits. | – Research infrastructure plans. – Choose growth areas. – Plan for long-term ownership. |
| Homeowners / Investors | – Improved infrastructure can increase property values. – Easier tenant turnover flexibility. – Growing rental demand. | – Higher vacancy risk if turnover rises. – Neighbourhoods may shift due to development. | – Monitor rental demand and lease rules. – Review pricing strategy. – Keep properties well-maintained. |
Frequently Asked Questions (FAQs)
Will rent go up immediately?
Not overnight. But as fixed-term renewals become standard, some tenants may face higher rents when signing new agreements.
Will new housing reduce home prices?
More supply can help slow price growth, but it usually doesn’t cause major price drops unless demand also falls.
Does ending evergreen leases mean tenants can be evicted more easily?
Not necessarily, but landlords will have more flexibility to end leases once the term expires. Tenants should review lease end dates and rights carefully.
Should I wait to buy a home?
If you find a home that fits your needs and budget, waiting may not help much. Supply increases take time to reach the market, so opportunities could still be limited in the short term.
What You Can Do Next
| Stakeholders | Key Actions |
| Tenants | Check your lease for renewal clauses and end dates. Ask your landlord about renewal options early. Stay informed on new tenancy regulations. |
| Homebuyers | Research neighbourhood infrastructure plans. Compare ownership vs. renting costs as policies evolve. Consider buying in growing areas with new transit or housing projects. |
| Homeowners and Investors | Track the rollout of the Building Faster legislation. Evaluate how development near you could affect property values. Prepare for more movement in the rental market. |
Final Thoughts
Ontario’s housing landscape is changing quickly. The end of evergreen leases could reshape tenant protections, while the new building legislation aims to speed up housing supply and infrastructure growth.
For renters, this could mean more uncertainty in the short term. For buyers and homeowners, it could open new opportunities and reshape property values over the long run. The best move is to stay informed, ask questions, and plan ahead. Whether you rent, own, or invest, understanding these changes today can help you make smarter housing decisions tomorrow.
At Pegasus Lending, we help Canadians make sense of housing market shifts, from policy changes to mortgage planning and refinancing options.
Contact us to start your home journey with Pegasus Lending and explore solutions designed to help you move forward with confidence.