Below Is an Interesting Opinion on Ont. Proposed Rental Control, Let Us Know Your Thoughts !
"The reality is that you cannot tax your way to real and sustainable change."
The current state of affairs:
• We are in the process of a historical transition to a more rental-oriented real estate market
• 28,000 new-build rental units were proposed as of the 4th quarter of 2016
• More talk of rent control is having “chilling effects” on developers and impacting their decision to build rental units
Rent control hurts those it aims to protect:
• Discourages developers from building rental units in a market where most people can no longer afford to own a home
• For the projects that will get developed, quality of the product will be affected
• Tenants will stay longer in units; hence, landlords have no incentive to maintain the units (no need to attract other tenants)
• Tenants will “turn against tenants” as they compete over dwindling housing supply resulting in a rental black market
What is needed instead from the government?
• Faster land development approval process
• Reassessing current intensification limits
• Providing developers with the right incentives to build rentals
• Increased investment in affordable housing