Rent Caps Can Widen the Gap Between Sitting and Moving
A continuing-tenancy rent cap protects a renter who stays in the same home, but it does not control the asking rent for a new tenancy. When regulated rents fall far behind current market costs, the gap between staying and moving can grow.
Why?
That gap can reduce mobility. A renter may feel unable to move closer to work, find a more suitable home or change household size because the available rent is much higher than the rent being left behind. It can also concentrate adjustments at turnover instead of producing a gradual, predictable market.
Supporting Story
CMHC — Rental Supply Increases but Demand Surges
THE BETTER DIRECTION FOR NOVA SCOTIA
Replace the temporary cap with a predictable transition that protects against sudden bad-faith conduct, allows reasonable cost recovery and focuses affordability support on renters whose income cannot keep pace with housing costs.