From CMHC

Getting more rental housing built requires a balance between increasing returns to investors and protecting tenants. But tighter rent control is often not the solution.

Addressing housing affordability is critical for Canada. Owning a home has become so expensive in some cities that renting has become the only viable option for many. Over recent years we’ve had low vacancy rates, and tenants moving to new units see sharp rent increases. We need a substantial and sustained increase in the supply of rental units over the long term.

Many, however, express misgivings about private-sector involvement. They are concerned that private landlords may charge higher rents or take advantage of their tenants. Government-supplied rental units or rent control are seen as solutions. Are these concerns valid and are solutions appropriate? What can be learned from research on increasing private-sector rental supply while protecting tenants?

Our research found no firm evidence that private-sector ownership led to undue increases in rents. In addition, the international literature suggests that rent control risks lowering housing supply in the long term. Based on recent surveys, the annual eviction rate for renters in Canada is estimated at between 1% and 3%. Having effective tenant protection is important, balanced with harnessing private-sector investment in the rental sector.

https://www.cmhc-schl.gc.ca/observer/2025/accelerating-rental-supply-incentivizing-development-safeguarding-tenants