Did You Know? Rent Controls Consistently Reduce Rental Housing Supply
A recent report from the Institute for Fiscal Studies examined the theoretical and real-world effects of rent controls.
The report found that while rent controls may lower housing costs for some existing tenants, international evidence consistently shows that they also reduce the supply of rental housing.
Every study included in a major 2024 evidence review found that rent controls reduced the number of homes available for rent. Some studies also identified lower rates of new housing construction.
Housing providers may respond to rent controls by:
- Selling rental properties to owner-occupiers
- Converting properties to other uses
- Reducing investment in maintenance and renovations
- Redirecting future investment away from rental housing
The report also found that rent controls can reduce tenant mobility, contribute to housing shortages and make it more difficult for prospective tenants to find suitable homes.
THE BETTER DIRECTION
Allow Nova Scotia’s temporary rent cap to expire at the end of 2027 and replace it with targeted tenant assistance that protects vulnerable renters without discouraging investment in rental housing.
Read the Institute for Fiscal Studies report: Do Rent Controls Work?