As the new year unfolds, Canadians can expect to see a number of changes coming hitting the housing scene in 2024.

From updated taxes to revised urban planning regulations, new housing laws and policies will roll out across the country in the coming months. These updates aren't just for show; they're geared towards tackling our ongoing housing shortage, both in resale and rental markets.

Here are the new housing policies that you should know about in 2024. 

Federal Policies

Short-term Rental Restrictions

In November, 2023, the Government of Canada unveiled its 2023 Fall Economic Statement, which details new tax, spending and inventory-boosting measures. This includes new efforts to incentivise short-term rental operators to return properties to the long-term housing market. Going forward, income tax deductions will be denied in cases where short-term rental owners are not compliant with provincial or municipal licensing, permitting or registration requirements. This applies to all expenses incurred on or after January 1st, 2024.

The short-term rental regulations are intended to help increase the availability of rental units. In its fiscal update, the federal government said there are an estimated 18,900 homes used as short-term rental properties across Toronto, Vancouver and Montreal.

Rental platforms are now required to share host data for enforcement and tax auditing purposes and must promptly remove unlicensed listings. The law also mandates that short-term rentals in larger municipalities be limited to hosts' principal residences, with some exemptions for smaller communities and resort areas. 

The principal residence requirement for short-term rentals will apply to communities with a population over 10,000 and those within 15 kilometres of such municipalities. Communities with a vacancy rate above 3%, as per the latest CMHC data, may seek exemptions from this rule. Additionally, currently exempt communities have the option to opt into this requirement if local governments so decide.

Municipalities have also opted to develop additional licensing requirements to regulate short-term rentals. 

You can read the 2023 Fall Economic Statement here. 

Pre-approved Home Design Catalogue

To boost construction of new home supply, the federal government intends to revive a post-Second World War housing policy of standardized, pre-approved home designs, making it easier and faster for developers to build new properties. The modern version of the catalogue will focus on creating blueprints for a variety of low-rise housing, and potentially higher-density homes and different forms of building construction, such as modular and prefabricated homes.

Hamilton:

First anti-renoviction by-law in Ontario

After years of advocacy, Hamilton has become the first city in Ontario to enact a bylaw aimed at preventing "bad faith" renovictions and strengthening protections for renters. Enforcement of this bylaw is scheduled to commence in January 2025.

Under this new regulation, landlords must apply for a $715 renovation license within seven days of issuing an eviction notice. Furthermore, they must obtain all necessary building permits, including an engineer's report confirming the need for vacancy to carry out renovations. Landlords are obligated to make arrangements, such as providing temporary accommodations or compensation, for renters who wish to return to their units. Additionally, they must offer the same rental rate that was paid prior to the renovation. Non-compliance with the bylaw could result in fines of up to $500 per unit per day.

Other municipalities in Ontario, including London and Toronto are considering similar measures.

Toronto

New Luxury Home Tax

Effective January 1st, 2024, the City of Toronto will enforce graduated Municipal Land Transfer Tax thresholds for high value residential properties. Previously, homes valued at $2 million or more would be subject to a municipal land transfer tax rate, which is currently set at 2.5%. Going forward, additional thresholds have been established for homes priced between $3 million and $20 million, with the new rates set incrementally higher based on the value of the home. 

Legalization of Rooming Houses

Otherwise known as multi-tenant homes, rooming houses will become legal in the City of Toronto starting March 31st, 2024, along with new regulations. A multi-tenant house is defined as a building with four or more rooms that may have a shared washroom and kitchen.Under the new framework, Toronto rooming houses will be limited to a maximum number of rooms and parking, licensing requirements, and will be required to follow a compliance program. 

Increase in Vacant Home Tax Rates 

In 2023, Toronto introduced its first ever Vacant Home Tax (VHT), which requires homeowners to declare the occupancy status of their residence to the municipality each year. The VHT was implemented to increase housing supply in Toronto by encouraging the conversion of empty properties into occupied homes.

The VHT has been increased from 1% to 3% for the 2024 taxation year, which will become payable in 2025.