National housing agency releases new research with scores of Canadians having no option but to rent
Canada Mortgage and Housing Corporation (CMHC) has released new research examining rent control, the role of Real Estate Investment Trusts (REITs), and eviction trends in Canada’s rental market, stressing the need for policies that encourage both private investment and strong tenant protections.
The report notes that high home ownership costs in several Canadian cities have made renting the only feasible option for many households. Low vacancy rates and rising rents, particularly for new tenancies, have underscored the urgent need for a “substantial and sustained” increase in rental supply.
CMHC deputy chief economist Aled ab Iorwerth said private-sector participation is essential to meeting housing demand. “To increase supply and restore affordability in the rental market, private investment is critical,” he said.
“Although there are legitimate concerns about inappropriate practices by some landlords, they are better addressed by strengthening tenant protections rather than discouraging private investment in rental housing. Our analysis shows cities and countries with plentiful rental supply incentivize landlords to compete to attract and better serve tenants.”
The study’s findings include:
- Rent control: International evidence suggests rent control can stabilise rents for existing tenants but may result in reduced rental supply, lower tenant mobility, and faster rent growth for new or vacant units.
- REIT ownership: In Montreal, Toronto, and Vancouver, REITs control an estimated 6% to 12% of the rental market. These properties are typically in more expensive areas, but rents charged are comparable to similar non-REIT units in the same neighbourhoods.
- Evictions: Using Canadian Housing Survey data from 2021 to 2023, CMHC estimates that roughly 1% of renters—about 49,000 households annually—were evicted in the preceding 12 months.
The report emphasises that governments alone cannot resolve Canada’s housing shortage, pointing to the need for private developers to play a significant role in new rental construction. At the same time, it acknowledges public concerns about potential exploitation by some landlords and the importance of regulatory safeguards.
A comprehensive analysis of the findings is available in CMHC’s Housing Observer under the article Accelerating Rental Supply: Encouraging Development while Safeguarding Tenants.
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