Rental Displacement

Understand rental displacement in Canadian housing — what causes it, who it affects, and how cities manage its impact through planning and policy.

Rental Displacement

June 23, 2025


What is Rental Displacement?

Rental displacement refers to the forced or indirect removal of tenants from rental housing due to redevelopment, gentrification, significant rent increases, or property conversion.

Why Rental Displacement Matters in Real Estate

In Canadian real estate, rental displacement raises housing equity concerns and influences planning decisions in urban centres facing affordability crises.



Common causes include:
  • Demolition or renovation of rental properties
  • Evictions for owner occupation or redevelopment
  • Rent increases after tenant turnover
  • Condo conversions or repurposing of rental buildings



Displacement disproportionately affects low-income renters and may trigger municipal protections like rental replacement bylaws or tenant relocation programs.



Understanding rental displacement helps planners, developers, and policymakers prioritize balanced growth and housing stability.

Example of Rental Displacement in Action

Tenants in an aging rental building are given eviction notices after the property is sold to a developer planning luxury condos, causing rental displacement.

Key Takeaways

  • Occurs when tenants are pushed out due to redevelopment
  • Linked to gentrification and affordability pressures
  • Can be direct (eviction) or indirect (pricing)
  • Affects vulnerable and long-term renters
  • Sometimes mitigated by municipal policies

Related Terms

Additional Terms

Designated Agency

Designated agency is a brokerage model in which a real estate firm designates separate agents to represent different clients in the same transaction.. more

Density Study

A density study is an analysis used to determine the development potential of a parcel of land under applicable zoning and planning regulations. It. more

Geothermal Lease

A geothermal lease grants rights to use underground heat resources for energy generation or property heating and cooling. The lease defines access,. more

Foreign Buyer Compliance Certificate

A foreign buyer compliance certificate is documentation required to confirm that a property purchase complies with federal, provincial, or municipal. more

Floodplain Mapping

Floodplain mapping identifies areas at risk of flooding based on hydrological studies and historical data. Maps guide development decisions,. more

Exclusionary Zoning

Exclusionary zoning refers to land use policies that limit housing types or density, often by requiring large lot sizes, single-family homes, or. more

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