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Rent cap vs. rent subsidy — Alberta party leaders debate best approach while costs increase

Rent cap vs. rent subsidy — Alberta party leaders debate best approach while costs increase

CBC
Wednesday, May 10, 2023 1:36 PM GMT

In December — after six years on a waiting list — Courtney Townsend finally secured a $900 provincial rental subsidy to help keep her and her kids in their home, close to her parents.

In March, she got the news that her subsidy would be essentially wiped out.

Her landlord said he's raising her $1,800 rent by $800 for her small Lakeview bungalow.

She looked at switching her kids' schools and finding a cheaper rental elsewhere, but she says there wasn't much available. So she signed the renewal papers anyway and is looking for a fourth part-time job or a roommate. She's shocked at the change.

"I don't understand why there's no rent control," said Townsend, who works as a research assistant, retail associate and freelance photographer. 

"$800 all in one shot is just outrageous," she added. "It would be amazing if [the provincial government] had something in place saying they could only raise rents so much every year, or every couple of years." 

Surging rents and a tight supply have many people calling for rent control, especially community groups such as Calgarians for Housing is a Human Right and Edmonton's Interfaith Housing Society, who held a public rally on Sunday.

They point to cases like Townsend's to say more rules are needed urgently.

But other advocates and economists say the situation is more complicated. What is the right path forward?

CBC Calgary spoke with advocates and economists with several perspectives to find out.

And given that Alberta is in the midst of a provincial election, we also reached out to each of the main political parties to see where they stand, and outlined in full what they have to say below.

The UCP says it's opposed to rent control, while the NDP has no defined position on the policy but says it's open to having conversations about it if elected. Both parties point to less controversial options as solutions, like subsidies and more housing. Among the smaller parties, the Green Party is promoting a 1.5 per cent rent cap, the Alberta Party is pushing a broader income support strategy and the Wildrose Loyalty Coalition has no housing platform.

Alberta is one of the few provinces with no limit to how much a landlord can increase rent, only how often (once a year). The provincial government offers subsidies to low-income Albertans instead, although thousands of people who qualify for them are on a waiting list.

But even among advocates and economists, there's debate over whether rent controls or subsidies are the answer.

Read full story on CBC
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