The current affordability crisis in Saskatchewan is proving particularly acute for renters. Over the past five years, the cost of rent in purpose-built apartments in Saskatchewan has risen 33.9 per cent, placing the province behind only Nova Scotia (+43.9 per cent), Alberta (+38.5 per cent), and B.C. (+36.9 per cent) for long-term rent growth. Moreover, while other cities are beginning to see declines in asking prices for vacant units, Regina and Saskatoon witnessed some of the highest rent increases in the country over the last year.
These cost pressures squeeze renters to a greater extent because they often have lower household incomes and allocate more of their income to shelter costs than homeowners. Given this persistent unaffordability for renters, why is rent control not on the table?
Over the past five years, the cost of rent in purpose-built apartments in Saskatchewan has risen 33.9 per cent, placing the province behind only Nova Scotia (+43.9 per cent), Alberta (+38.5 per cent), and B.C. (+36.9 per cent) for long-term rent growth.
Today’s rent controls do not freeze rents but sets limits to rent increases to prevent price-gouging, while creating clear and consistent rent regulations that provide predictability for landlords, tenants and developers.
Nova Scotia had rent increases capped at 2% from Nov 2020 through Dec 2023, and it’s been 5% since Jan 2024, but we have the highest rent growth. A cap isn’t enough if increases between tenants are uncapped, it just encourages renovictions and other bullshit.
Yeah that’s BS. Toronto just implemented a renoviction permit program (i.e., a permit [showing some proof renovation work probably] is now needed before a tenant can be lawfully displaced for a renovation)
Despite the persistence of the myth that rent controls kill supply, evidence demonstrates the contrary. In 2020, the Canada Mortgage and Housing Corporation (CMHC) analyzed the impact of rental controls enacted after 1971. The key finding of this study: “There was no significant evidence that rental starts were lower in rent control markets than in no rent control markets.” Recognizing that current debates on rent controls resemble long discredited arguments against minimum wage increases, 32 U.S. economists signed a letter to the Federal Housing Finance Agency concluding that “there is substantial evidence that rent regulation policies do not limit new construction, nor the overall supply of housing.”
The Wikipedia article contradicts that pretty heavily.
It just doesn’t make any sense, too. Why would you build a rental unit that won’t earn well?
The article states that “modern” rent caps allow a reasonable price increase every year. The Ontario cap looks like it averaged around inflation.
At the same time, the federal government used to provide pretty reasonable tax incentives for purpose built rentals. They’re supposed to be reinstated, but I’m not sure if it happened yet.
Interesting, I missed that. I could see how that’s a little more manageable. You’d still potentially see a slower response to housing crunches where the actual value rises faster than the overall inflation, but it wouldn’t completely render the thing a farce.
The best incentive would be a split-rate land value tax. Then the land that’s wasted on vacant buildings, speculation, car dealerships, etc. would be freed up and developers wouldn’t be punished for building apartments
Because it mostly helps old people and makes it hard to get anything new built? Like, there’s a rebuttal to the second point in there, but I think it stands up.
