Saskatchewan Realtors: Why Rent Control Fails Housing Affordability
Saskatchewan Realtors: Rent Control Fails Affordability

The Saskatchewan NDP has recently put forward a proposal to implement rent control across the province, positioning it as a solution to make housing more affordable for tenants. This move comes at a time when many Canadian families are feeling the significant financial strain of rising living costs.

The National Evidence Against Rent Control

While the intention to help renters is understandable, evidence from other parts of Canada suggests this approach would backfire. Provinces that have already implemented rent control measures—including Ontario, British Columbia, Quebec, Manitoba, and Prince Edward Island—consistently show some of the highest average rents in the country.

In striking contrast, Saskatchewan and Alberta, both operating without rent control policies, maintain their positions among Canada's most affordable rental markets. This clear pattern indicates that while rent control might sound like relief for tenants, it ultimately fails to deliver meaningful affordability improvements.

How Rent Control Harms Housing Supply

According to analysis from the Canada Mortgage and Housing Corporation (CMHC), rent control creates a dual-effect problem. While it may temporarily slow rent increases for tenants who remain in their current units, it simultaneously drives up costs for vacant properties.

The policy creates several negative consequences that exacerbate housing shortages. It reduces tenant mobility, discourages new construction projects, and ultimately limits the overall supply of available homes. When investors, builders, and landlords face restrictive policies like rent control, they typically pull back from the market, which deepens the existing supply crisis.

The fundamental economic reality remains clear: less housing supply inevitably leads to higher prices, not lower ones.

Saskatchewan's Path Forward

Chris Guérette of the Saskatchewan Realtors Association emphasizes that affordability concerns are genuine and growing within the province. As Saskatchewan's population expands through household formation, immigration, and interprovincial migration, the demand for housing continues to outpace construction capabilities.

The association's 1,800-plus members witness these challenges daily, working with families struggling to transition from renting to home ownership and newcomers searching for stable housing. They identify that the real barriers to housing solutions include construction delays, permitting bottlenecks, and rising building costs—not the absence of rent control.

Saskatchewan has a unique opportunity to address its housing challenges effectively by focusing on policies that encourage housing supply growth rather than quick fixes that could ultimately make the situation worse for everyone.