Housing Shortage: Stop Penalizing Investors
As a result of the shortage of affordable housing in Montreal, certain voices have been calling on the government to freeze rents. While the intention behind this request is laudable, as a practical matter, it misses the mark. Such a measure would have negative consequences for low-income households, and would only end up making Montreal’s housing crisis worse.
Let’s recap some basic economic principles. When there’s a shortage of something, it’s because the quantity demanded exceeds the quantity supplied on the market. There is therefore upward pressure on prices to rebalance supply and demand…. [Read More]