An article in Star Vancouver reported on the B.C. government’s decision to lower annual rental increases, and subsequent threats by developers to cancel rental projects in Vancouver.
Tsur Somerville, an associate professor of economics at UBC’s Sauder School of Business, said capping the annual rent increase would limit future rental supply, although it is good for current renters. Somerville believes a more efficient policy would be no rent control, combined with government-provided rent subsidies to people on lower incomes.
