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Ontario Housing market - Stronger rent controls coming

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segnosaur:
Looks like the Ontario government is taking a few measures to deal with increasing housing costs:

- A tax is being placed on foreigners who buy property (but don't live there) in Toronto and the surrounding areas. (In theory its supposed to cut down on real estate speculation.)
- Rent controls are to be expanded. It used to be that all units built after 1991 were exempt, but now rent control will apply to all units.

http://www.cbc.ca/news/canada/toronto/kathleen-wynne-housing-market-home-prices-rent-control-1.4076283

I am actually quite worried about the imposition of rent controls. Although they may be popular in the short term, in the long term rent controls can greatly restrict housing supply. So while current renters may be happy, in a decade people are going to have significant problems finding places to live.

http://www.economist.com/blogs/economist-explains/2015/08/economist-explains-19

SirJohn:
Why would you worry? This is the Ontario LIBERALS, after all? It's not like they lack economic expertise or any sense of how a market economy works. Why, already in their announcement, they've anticipated the way private sector construction of rental housing is going to plummet by proclaiming the need for more government funded affordable housing.

What could go wrong?

Queefer Sutherland:
They should tax on all buyers of residential homes and condos who don't live in the homes, unless a relative lives in it.

SirJohn:

--- Quote from: Moonlight Graham on April 20, 2017, 05:58:41 pm ---They should tax on all buyers of residential homes and condos who don't live in the homes, unless a relative lives in it.

--- End quote ---

That would certainly make it less profitable to buy condos and rent them out. But then, there are tons of rentals available anyway, right?

wilber:
I agree. With the average person being priced out of the housing markets in Toronto and Vancouver, if anything, government should be encouraging rentals.

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