Rent caps can widen the gap between staying and moving
A rent cap that applies during an existing tenancy protects renters who remain in the same homes, but it does not control asking rents for new tenancies. When regulated rents fall far behind current market costs, the financial gap between staying and moving can grow.
Why?
That gap can reduce mobility. Renters may feel unable to move closer to work, find more suitable homes or adjust to changes in household size because available rents are substantially higher than the rents they would leave behind.
It can also concentrate necessary rent adjustments when units become available instead of allowing rents to change gradually and predictably.
Supporting story: Read the CMHC article
THE BETTER DIRECTION FOR NOVA SCOTIA
Replace the temporary rent cap with a predictable transition that protects renters against sudden bad-faith conduct, allows reasonable cost recovery and directs affordability assistance to renters whose incomes cannot keep pace with housing costs.