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Intertenancy Rent Decontrol in Ontario

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  • Lawrence B. Smith
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    Abstract

    Intertenancy rent decontrol (referred to in Ontario as vacancy decontrol) forms the headstone of the Ontario rent-control system. The transition from a relatively rigid rent-control regime to intertenancy decontrol created distortions in the rental market, the most significant being the creation of a two-tier rent system with rent on decontrolled units above the rent that would have existed in the absence of controls. As an intertenancy system matures, maturation diminishes these distortions and recontrol provisions provide protection for long duration tenants. Alternative options for terminating intertenancy decontrol while retaining rent control all entail significant economic costs compared to the mature decontrol regime presently in Ontario.

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    File URL: http://links.jstor.org/sici?sici=0317-0861%28200306%2929%3A2%3C213%3AIRDIO%3E2.0.CO%3B2-%23
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    Bibliographic Info

    Article provided by University of Toronto Press in its journal Canadian Public Policy.

    Volume (Year): 29 (2003)
    Issue (Month): 2 (June)
    Pages: 213-225

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    Handle: RePEc:cpp:issued:v:29:y:2003:i:2:p:213-225

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    Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
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    References

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    1. Rapaport, Carol, 1992. "Rent Regulation and Housing-Market Dynamics," American Economic Review, American Economic Association, vol. 82(2), pages 446-51, May.
    2. Smith, Lawrence B, 1974. "A Note on the Price Adjustment Mechanism for Rental Housing," American Economic Review, American Economic Association, vol. 64(3), pages 478-81, June.
    3. Deng, Yongheng & Gabriel, Stuart A & Nothaft, Frank E, 2003. "Duration of Residence in the Rental Housing Market," The Journal of Real Estate Finance and Economics, Springer, vol. 26(2-3), pages 267-85, March-May.
    4. Rosen, Kenneth T & Smith, Lawrence B, 1983. "The Price-Adjustment Process for Rental Housing and the Natural Vacancy Rate," American Economic Review, American Economic Association, vol. 73(4), pages 779-86, September.
    5. Richard Arnott, 1995. "Time for Revisionism on Rent Control?," Journal of Economic Perspectives, American Economic Association, vol. 9(1), pages 99-120, Winter.
    6. Basu, Kaushik & Emerson, Patrick M, 2000. "The Economics of Tenancy Rent Control," Economic Journal, Royal Economic Society, vol. 110(466), pages 939-62, October.
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    Cited by:
    1. Richard Arnott & Elizaveta Shevyakhova, 2008. "Tenancy Rent Control And Credible Commitment In Maintenance," Working Papers 200812, University of California at Riverside, Department of Economics, revised Sep 2008.

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