Rent control makes housing crisis worse
By Kevin Russell
Nov. 25 marks the fourth anniversary of the introduction of temporary rent control in Nova Scotia.
When it was announced, government’s stated intent was to address the housing crisis by capping rent increases to two per cent per year.
Evidence shows rent control is only making a difficult situation worse.
There is a misconception that limiting rent increases somehow improves access to housing and makes what housing is available more affordable. The opposite is true.
Rent control makes owning rental housing unsustainable for many family-managed operators. This is because rents cannot be increased to keep pace with rising costs of operating and maintaining housing units. Like other homeowners and businesses, rental housing providers are facing increased costs for property taxes, mortgages, heat, electricity, water and other supplies, as well as the higher costs of maintaining and upgrading common areas and property improvements.
With over 97 per cent of revenues dependent on rent, rental property owners have few options to address increased costs other than through reasonable annual rental price increases based on the market. With rent control in place, rental property owners are sometimes forced to let units sit empty because they can’t afford the higher operating costs. …[Continue Reading] Published in the Halifax Chronicle Herald and on Saltwire.com