Quebec Conservatives to Ease Rent Control
The Quebec Conservative Party plans to support a market-based approach to the development of affordable housing
Montreal, August 18, 2022 — Economists are at odds on a lot of things, but a great many of them will tell you that rent controls are counterproductive. The rationale for capping rents is laudable: protect the less fortunate from greedy landlords. Stabilization regulations can help low-income consumers, but they do nothing to address the tight supply of properties. You don’t need to be an economist to understand why that happens. When demand exceeds supply, prices rise until supply begins to match demand.
The solution is to increase the supply of housing to make investing in rental properties more profitable. Éric Duhaime, the leader of the Conservative Party of Quebec, says the onus to promote affordable housing should not be placed on the property owner. “The state has a responsibility to assist those who cannot find housing, but it must rectify wholesale policies that penalize all parties by stifling the market” he says.
Quebec has some of the more stringent rent control regulations in the world and the burden on property owners has increased exponentially over the years. In 1985, it was estimated that a landlord who renovated units would recoup the investment in approximately 7 years. Today, the ROI period exceeds 40 years! It’s estimated that a reduction in restrictions will increase investment in the rental property market in Quebec by more than 65 percent (on the order of 3 to 5 billion dollars) and yield modern, safe and energy-efficient housing. In Montreal, for example, analysts expect the market to return to a balanced pace by the end of this year.
With the Conservative Party of Quebec government, rent controls will be removed on the upper tier and renovated properties. Thereafter, controls will be progressively withdrawn on units as new tenants come in. Security deposits, within reason, will be permitted. A landlord has the right to safeguard their property, as much as a responsible tenant has the right to expect the property to be well-tended.
In the quest for a fair deal for all, “social housing programs” have more to do with political posturing than they do with economic realities. Government can do many things well, but property management is not one of them. The notion of “permanent affordability” is an oxymoron. “Public housing developments often stand as little else but a testament to the politicians who promoted them” says Éric Duhaime. The projects usually fail to evolve in a dynamic urban environment. Under “check-the-box”’ administrations, they decline and decay until the day they are boarded up. The premise that the private sector cannot serve low-income communities does not stand up to scrutiny. The potential for returns and diversification are far less risky than traditional sources like stocks and commodities, and the prospect of “impacting investing” is more attractive than ever.
On October the 3rd, Quebecers will make the right choice. A Conservative Party of Quebec government will invest in people with direct, targeted assistance. It will invest in people by enabling and supporting an open marketplace. It will invest in people by getting out of their way so that they may thrive.
Information and interview requests:
Véronique Gagnon, Political Attaché and Chair, Communications Commission
Quebec Conservative Party
Cell: 418 265–0947
E-mail: communications@conservateur.quebec
Cédric Lapointe, Press Attaché
Quebec Conservative Party
Cell: 819 921–5060
E-mail: presse@conservateur.quebec
