A recent investigation by The Globe and Mail revealed that for-profit nursing home owners in Toronto, Canada, are opting to sell their properties to housing developers rather than undertake mandatory upgrades to comply with design standards. This sell-off of nursing homes poses a challenge to the Ontario government’s goal of creating 60,000 new and upgraded beds by 2028. The situation is particularly acute in Toronto, where demand for beds is high, and six facilities have already closed or are closing. With the real estate market booming, owners see more profitability in selling to developers.
The profitability of residential mixed-use developments compared to investing in nursing home upgrades underscores the need for sustainable financing models and government incentives to ensure the availability of quality senior care.
The strain on the senior housing market in Toronto emphasizes the urgency for collaborative efforts between the government, developers, and communities to address the shortage of beds. Innovative solutions, such as public-private partnerships and streamlined approval processes, can help expedite the development of new and profitable long-term care residences, and ensure accessible and affordable care options for seniors.