“If the government were to get rid of rent control, investors would be more willing to put their money into rental housing both to build it and to upgrade it,” John Dickie told CRE Online.
Governments create rent controls to ensure that tenants won’t incur large rent increases without warning. But this policy doesn’t factor in landlords’ expenses, which have been steadily rising for years, Dickie said.
If landlords’ costs continue to rise at a rate higher than their rents, Dickie said many will simply leave the business altogether, creating a shortage of rental housing.
To prevent this from happening, Dickie said provincial governments should eliminate rent controls and invest more money into affordable housing. That way the market will determine a fair rental rate and those who can’t afford it can apply to live in subsidized housing.
Toronto NDP MPP Cheri DiNovo told CRE Online
recently the Ontario government needs to maintain rent controls to make up for the province’s “chronic shortage” of affordable housing.
“Fifty per cent of all tenants – right now – cannot afford to pay for the necessities of life, plus the rent. And we have 142,000 families on the affordable housing waiting list, and they wait an average of 10 to 12 years,” she said. “If everyone wants the good times to continue, we’ve got to look after the tenants too.”
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