Albertans call for rent control, economist calls it a ‘bad idea’

Amid increased calls for rent increase caps in Alberta, an economist is raising concerns with the idea.

Expensive rent coupled with rising inflation on essentials like groceries, living expenses can add to stress and make it difficult for many to keep up.

This situation has some Albertans calling for the province to step in, like at a recent demonstration held in Calgary.

Kavin Sheikheldin, who started a Facebook page a couple of years ago to offer a space for people to voice their rental concerns, was at the protest.

“The reason I think a rent cap is needed is because, really, in this province, lots of things are going up — skyrocket high,” she told CityNews.

“Not only rent, but if we pay high rent costs, then we won’t be able to afford our other essential basic needs of life such as food and energy.”

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But economist Moshe Lander, who works in the department of economics at Concordia University, says he is “dead set against any sort of rent control.”

He tells CityNews reducing the amount landlords can charge will cause them to leave the market or allow the quality of rentals to deteriorate.

“Bad idea,” Lander said. “This is a classic example of how voter ignorance allows good politics to beat good economics.”

“Any economic student will tell you rent control is a terrible idea; it’s just we don’t have enough students who have taken economics to override the good politics and optics of rent control,” he added.

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Lander thinks the solution is simple: to decrease rent prices, the housing supply must be increased.

“So what we’re seeing, for example, in Calgary, is the idea of retrofitting a lot of these office towers to create residential opportunities.”

While Sheikheldin agrees with Lander’s sentiments on housing needing to be built, she is still advocating for a drop in rent prices.

“Rent control is needed because how can people afford to live in those places that are being built?” she asked.