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The Crisis in Rental Housing: A Canadian Perspective

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  • LAWRENCE B. SMITH

Abstract

Concern has recently been raised in the United States and Canada about a growing crisis in rental housing. Since many of the issues raised in connection with the possibility of a U.S. crisis have surfaced earlier or in magnified form in Canada, this article examines the question of a rental housing crisis from the Canadian perspective. The article begins with a discussion of the background of the rental crisis and an examination of the pre-1972 tax preferences for rental housing. Evolution of the crisis is then analyzed, focusing on the 1972 restructuring of the tax system, expectations of accelerating inflation, government support for competing housing forms, and rent control. The impact of high interest rates on the decline in rental construction and changes in the socioeconomic composition of tenants and in the affordability of rental housing are also discussed. The article concludes with an analysis of the outlook for rental housing.

Suggested Citation

  • Lawrence B. Smith, 1983. "The Crisis in Rental Housing: A Canadian Perspective," The ANNALS of the American Academy of Political and Social Science, , vol. 465(1), pages 58-75, January.
    • Handle: RePEc:sae:anname:v:465:y:1983:i:1:p:58-75
    DOI: 10.1177/0002716283465001006
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