Urgent need to tackle
The need for affordable housing has reached crisis levels across the region.
Far too many Nova Scotians and Prince Edward Island facing sudden, steep rent increases are finding it nearly impossible to find new, affordable places to live. Those who do often must spend more than half their incomes on housing, forcing some to choose between buying food or necessary medication.
And with winter fast approaching, homelessness has also reportedly been on the rise.
None of this should be acceptable in a country as advanced and wealthy as Canada.
There’s no question population growth, fuelled mainly by immigration, has been putting upward pressure on property values in Halifax and Charlottetown for a number of years.
The result has been a red-hot residential real estate market. Realtors report frequent cases of listed homes receiving multiple bids and selling quickly for over asking price.
That same pressure has affected the rental market. It’s naturally led to increased development and current rental property owners seeking to upgrade their units to maximize the return on their investment.
In Charlottetown, the short-term rental market adds extra pressure on the situation.
In Halifax, tenants are calling on the government for rent controls — phased out by the Liberals in the 1990s — to be re-established in the province.
Rent controls are, to say the least, controversial. Many experts say that such caps — which can take many forms — do provide stability for renters in the short term, but in the long run can cause all sorts of problems, including reduced investment in new housing or maintaining existing stock, as well as increased conversions of rental units to condos.
The Nova Scotia government has indicated it’s not keen on rent control as a solution. Halifax Mayor Mike Savage, while saying the city’s new council will likely want to look at it, called evidence for its effectiveness “decidedly mixed.”
We don’t know if some form of rent control is the answer. What we do know is that people displaced from their homes must find adequate accommodations, and soon, as the weather turns colder.
We also agree with housing expert Grant Wanzel who says that dealing with the affordable housing crisis requires having a firm grasp of the situation.
How much affordable housing stock exists, both public and private? Where? Is it being preserved when feasible? How much is needed? How much more — specifically affordable housing — is slated to be built, and by when?
Good data makes for good decisions. Governments across the region along with key stakeholders — and that includes tenants — must put their heads together and tackle this issue quickly.