Does rent control stifle construction? Until there’s more data, the jury’s still out

Rental vacancy rates have barely budged from levels of less than 2 per cent and rents have continued to rise after Ontario brought in rent controls in 2017.Postmedia News

Ontario has done yet another somersault on rent control regulations.

Premier Doug Ford’s government recently reversed the stringent rent control regulations that were enforced last year by the Liberals. Under the revised regulations, new or previously unoccupied rental units will no longer be subject to rent control.

Existing tenants in purpose-built or private rentals will continue to be protected. The change in regulation applies to newly built or previously unrented units in existing buildings.

Since the Liberal government instituted stringent regulations in April, 2017, which included price controls, rental vacancy rates have barely budged from levels of less than 2 per cent and rents have continued to rise. Evidence has mounted that such demand-side measures were ineffective.

You might also like More from author

Leave A Reply

Your email address will not be published.