Balancing private inve and tenant protection increase rental constr By David Gargaro
Canada has a severe shortage of affordable housing, and we lack the ability to build homes fast enough to meet growing demand. Boosting supply, rather than regulating demand, is the most effective way to address both housing availability and affordability. Private investment will help with achieving these goals. Everyone agrees Canada needs more rental housing stock. However, some housing critics have voiced concerns about the increased reliance on private sector involvement, claiming rents will increase and tenants will suffer. The federal government has taken measures to accelerate the development of new rental housing supply by pairing new development incentives for the private sector with policies that protect tenants’ rights. The Canada Mortgage and Housing Corporation (CMHC) published research on three key factors related to the financialization of rental housing: rent control, real estate investment trusts (REITs), and evictions. The findings illustrate private sector investment in rental housing is required to help stabilize the supply shortage and improve housing affordability. CMHC’s Deputy Chief Economist, Aled ab Iorwerth, discussed CMHC’s findings in an article entitled, “Accelerating rental supply: encouraging development while safeguarding tenants.” To follow is an exploration of CMHC’s article, what it reveals about Canada’s rental housing market, and how the federal government can balance policies that accelerate new housing development while protecting tenants.
14 | October 2025