Saskatchewan NDP Proposes Rent Control; Experts Urge Alternative Solutions

The Saskatchewan New Democratic Party (NDP) has recently proposed implementing rent control in the province, aiming to make housing more affordable for renters. This initiative comes at a time when many families are feeling the impact of rising living costs. However, experts warn that rent control may not be the effective solution it appears to be.

Provinces across Canada that have adopted rent control, including Ontario, British Columbia, Quebec, Manitoba, and Prince Edward Island, consistently report some of the highest average rents in the country. In contrast, Saskatchewan and Alberta, which do not impose such restrictions, enjoy some of the most affordable rental markets in Canada.

The Canada Mortgage and Housing Corporation (CMHC) provides insight into the effects of rent control. While it may temporarily slow rent increases for tenants who remain in their units, it inadvertently raises rents in vacant properties. Additionally, it hampers mobility, discourages new construction, and ultimately limits the supply of available housing.

When faced with restrictive policies, investors, builders, and landlords are likely to withdraw from the market, exacerbating the supply issue. This reduction in housing availability can lead to increased prices, countering the intended purpose of making housing more affordable.

The need for affordable housing is undeniable in Saskatchewan. As the province experiences growth through household formation, immigration, and interprovincial migration, the demand for housing is outpacing the ability to construct new homes. This trend poses significant challenges for renters, particularly young families and newcomers who are striving for homeownership.

The Saskatchewan Realtors Association, which represents over 1,800 members, witnesses these challenges firsthand. They assist families transitioning from renting to owning, support newcomers in finding stable homes, and advocate for communities striving to keep pace with housing demand. Association members recognize that issues such as construction delays, permitting bottlenecks, and rising development costs—rather than the absence of rent control—are the true obstacles to achieving housing potential in the province.

To address the housing crisis effectively, experts argue that Saskatchewan should focus on solutions that promote housing supply rather than implementing policies that may seem beneficial on the surface. This includes expediting the permitting and approval processes that currently hinder construction, reducing bureaucratic red tape that inflates development costs, and providing targeted assistance to renters in need rather than imposing blanket market controls.

Saskatchewan stands at a critical juncture where it has the opportunity to tackle national housing challenges head-on. By fostering an environment conducive to housing supply growth, the province can better serve its residents. While rent control may appear to be a straightforward remedy, it risks undermining the essential supply needed to maintain affordable housing.

Chris Guérette, the Chief Executive Officer of the Saskatchewan Realtors Association, emphasizes the importance of rejecting rent control in favor of solutions focused on enhancing housing supply. The goal for all involved should be to make housing affordable and accessible for all Saskatchewan residents, which requires a commitment to building more homes rather than implementing temporary fixes.

In summary, the Saskatchewan NDP’s proposal for rent control may not address the underlying issues of housing affordability and could potentially worsen the situation. Effective solutions lie in increasing the housing supply and facilitating a smoother construction process to meet growing demand.