Renters' Rights Bill: All sizzle and no steak?
Blueprint for a Renters’ Bill of Rights: Canada’s Federal Government Takes a Stand for Housing Security
The Canadian Federal Government’s recent unveiling of the Blueprint for a Renters' Bill of Rights marks a significant step toward addressing the housing crisis affecting millions of renters nationwide. As the housing market continues to tighten, with soaring rents, low vacancy rates, and increasing housing insecurity, the government has outlined a comprehensive framework to protect renters, promote transparency, and tackle systemic inequities. This ambitious plan emphasizes that housing is a human right grounded in dignity, security, and inclusivity.
However, rental and tenancy laws are the sole jurisdiction of the provinces and territories. The Federal Government can advocate for change, incentivize provinces to “level up” to proposed federal standards, and provide financial support for targeted interventions. However, the federal government has limits.
The Renters' Bill of Rights is part of the federal government’s larger National Housing Strategy (NHS), launched in 2017. This strategy envisions a future where all Canadians can access affordable, safe, and suitable housing. The NHS was reinforced in 2019 with the National Housing Strategy Act, which formalized the government’s commitment to realizing the right to adequate housing as articulated in the International Covenant on Economic, Social and Cultural Rights.
With the new Blueprint for a Renters' Bill of Rights, the federal government is reinforcing that commitment, seeking to build a national consensus for better renter protections and tenant rights. As we delve into this blueprint, it becomes clear that the plan addresses housing affordability and issues like fairness, transparency, discrimination, and systemic safeguards—all essential components to a well-functioning rental system.
The Housing Crisis is Global – Will National Solutions Work?
Many countries globally have declared a housing crisis. The problem is not unique to Canada. If the problem is global and caused by factors external to Canada, can Canada solve the problem with national solutions?
The global housing crisis is a complex issue caused by a combination of economic, social, political, and environmental factors. These causes vary by region, but some key root causes can be identified as contributing to the crisis in many countries:
1. Lack of Affordable Housing Supply
Insufficient housing construction: In many countries, housing supply has not kept pace with population growth, urbanization, and household formation. As demand increases without a corresponding increase in supply, housing prices soar, making it unaffordable for many.
Rising construction costs: Labor, materials, and land costs have escalated globally, making the construction of affordable housing less economically viable. Developers often focus on building high-end homes due to higher profit margins.
Zoning and land-use regulations: Restrictive zoning laws, particularly in urban areas, limit new housing development and the densification of housing. In Paris, these regulations restrict apartment building heights to eight storeys. In London, they prevent the replacement of terraced houses (i.e., townhouses) with six and eight storey apartment buildings. Finally, in US and Canadian cities, these regulations often prevent the construction of apartments and townhouses in areas dominated by single-family homes.
Local municipalities are responsible for permitting, zoning, and land use regulation. In some cases, provincial governments have forced minimum land-use standards onto the municipalities, but historically, this is unusual.
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2. Income Inequality and Stagnant Wages
Wage stagnation: While housing prices have risen sharply in many parts of the world, wages have not kept pace. This growing gap between income and housing costs means that a significant portion of the population is unable to afford adequate housing.
Widening Wealth Gap: Wealth is increasingly concentrated among the top 1 percent, leaving middle and lower income groups with limited access to affordable housing. In many cases, wealthier individuals purchase homes as investments, driving prices higher and pushing working-class and middle-income households out of the market.
Some provinces have introduced taxes on secondary residences. However, mom and pop investors are considered a critical source of funding for rental home construction, so provinces tread lightly.
3. Investment-Driven Real Estate Markets
Housing as an investment vehicle: Housing markets in many countries are increasingly driven by investments, particularly in major cities. Wealthy investors, both domestic and foreign, purchase properties as financial assets, driving up prices. In some cases, homes are left vacant or used for short-term rentals (e.g., Airbnb), reducing the overall housing supply. Some critics claim these are speculative investments; however, they’re only speculative if the investment returns are uncertain. Many investors, rightly or wrongly, believe that property ownership is a low-risk and high-return investment.
Real estate financialization: Housing has become a financial product for institutional investors like hedge funds, pension funds, and private equity firms. These entities acquire and rent large portfolios of residential properties that could be owner-occupied, to rent them. They are accused of raising rents and decreasing affordability for local residents; however, if renting a property is a business and subject to business taxes, the owner could claim that they should be seeking the highest rent that people are willing to pay. Then, they will pay taxes on the profit, and the government is welcome to use those taxes to help people with affordability challenges.
In English-speaking countries, challenging the idea that property can and should be an investment is unlikely to be successful. There is a long history of valuing property ownership, and existing owners will not want those rights stripped away.
However, a provincial government could limit the number of residential (single-unit) properties that a single company or individual can own.
4. Urbanization and Population Growth
Rural-to-urban migration: Globally, people are moving from rural areas to cities in search of better economic opportunities, leading to increased demand for housing in urban areas. This urbanization, coupled with inadequate housing planning, results in overcrowded and unaffordable housing markets.
In Canada, with work-from-home arrangements becoming more common, this trend could be reversed, but it is too early to say so.Population growth: In many regions, rapid population growth has outpaced housing development. This is especially true in developing countries and emerging economies, where population growth in urban centres often exceeds the capacity of housing and infrastructure.
Canada, by design, is attracting record levels of immigration. This tremendous population growth is putting a string on the existing housing stock and new stock can’t be built quickly enough to keep up with the influx.
5. Cultural and Demographic Shifts
Changing household compositions: Modern households are becoming smaller as more people live alone, delay marriage, or have fewer children. In the past, couples often bought homes, forming one household. Today, each of them might buy an apartment first before settling down to buy a home together. This shift increases the demand for housing units, especially in urban areas. In Canada in 1991, 85 percent of the population aged 15 to 49 were married. In 2021, that figure had dropped to 68 percent.
Ageing populations: In many developed countries, the ageing population is creating new housing challenges. Seniors often require specific types of housing, such as affordable retirement communities or homes with accessibility features, which are in short supply. Also, many seniors choose to “age in place” and stay in detached houses far larger than their personal needs.
The government has limited tools to change people’s preferences and behaviours; however, solving the housing crisis might lead to earlier family formation and more children per household.
The global housing crisis is the result of an interplay of economic, social, and environmental factors. Addressing it requires a multi-faceted approach that includes increasing the supply of affordable housing, reforming government policies, improving housing market regulations, and addressing broader systemic issues such as income inequality, climate change, and demographic shifts.
Now, back to the Canadian Federal Renter’s Bill of Rights.
A Renters’ Bill of Rights – Addressing the Canadian Housing Crisis
Canada’s housing crisis has disproportionately affected renters. One-third of Canadians rent their homes, but many face significant challenges. Rental prices have surged, vacancy rates have plummeted, and protections for tenants have eroded over time.
Terms like renoviction—where landlords evict tenants under the pretext of renovating a property only to re-list it at a higher price—are now commonplace. Renters are also at the mercy of unfair practices, such as inadequate maintenance by landlords, arbitrary evictions, and rapid increases in rental rates. Against this backdrop, the federal government has developed the Blueprint for a Renters' Bill of Rights to protect the most vulnerable populations and ensure housing security for all.
The overarching goal of the Renters’ Bill of Rights is to protect tenants’ rights and make housing more affordable and accessible. The blueprint rests on four core principles:
Ensuring everyone has a safe and affordable place to call home
Fostering fairness and transparency
Addressing inequity and discrimination
Safeguarding the system
These principles form the foundation of the government’s plan to rectify the imbalance in the current housing system, which often leaves renters vulnerable.
Principle 1: Ensuring Safe and Affordable Homes
The Canadian Federal Government is acutely aware that the lack of affordable housing is one of the country’s most pressing challenges. In many urban centres, particularly Toronto and Vancouver, the cost of rent has skyrocketed, putting an immense strain on low-income households. To mitigate this, the federal government has introduced several initiatives to increase the housing supply, focusing on affordable and non-market housing.
Programs like the Canada Rental Protection Fund, the Short-Term Rental Enforcement Fund, and the removal of federal taxes on the construction of new rental housing are central to this effort. The federal government is also working with provincial and territorial governments to establish mechanisms to protect against market instability, such as rental assistance programs and rent banks. These initiatives are designed to help Canadians find affordable, safe, habitable housing near employment opportunities and essential services.
The blueprint encourages provincial and territorial governments to develop solutions tailored to local needs, such as rental options for students, seniors, and those with accessibility requirements. This approach promotes inclusivity and recognizes the diverse housing needs of the Canadian population.
Principle 2: Fostering Fairness and Transparency
One of the cornerstones of the Renters’ Bill of Rights is the emphasis on fairness and transparency within the rental market. For too long, renters have operated in a system where they often lacked crucial information about their rights and the properties they inhabit. This lack of transparency has allowed unethical practices to persist.
The federal government, through initiatives like the Canada Mortgage and Housing Corporation's Market Reports and various publications from Statistics Canada, seeks to provide the data necessary for informed policymaking. It also calls for creating standardized processes across provinces and territories to ensure consistency in rental agreements, background checks, and other leasing formalities. For example, renters will soon have access to information about the rental history, legal ownership, and state of repair of rental properties. Currently, Quebec and British Columbia have the most tenant-friendly processes. Ontario sits in the middle, and Alberta has the fewest tenant protections. Canadians moving between provinces are often unfamiliar with the local processes and protections, and sometimes, they are victims of the regional tenancy law patchwork. The provinces are unlikely to reach an agreement on national standards.
Fairness will also be promoted through mechanisms that track and publicly report rent increases and evictions. This level of transparency is designed to prevent landlords from exploiting tenants, particularly in tight rental markets. Additionally, tenants will be protected against arbitrary evictions and other forms of exploitation through updated legislation and enhanced tenant protections.
On the transparency side, the federal government could use federal income tax reporting to gather rent roll data and tenant data. Landlords could be required to provide their monthly rent rolls to support their rental income declarations, and tenants could be asked to list their residences and rent rates throughout the year. This data could be used in many ways, including ensuring landlords declare total rental incomes and pay all taxes due.
Principle 3: Addressing Inequity and Discrimination
Renters in Canada are a diverse group, encompassing students, seniors, Indigenous peoples, single-parent families, and individuals with disabilities. These groups are disproportionately affected by discriminatory practices in the rental market, often facing prejudice based on race, ethnicity, gender, family status, or other factors. These discriminatory practices contribute to housing instability, homelessness, and cycles of poverty.
The Renters' Bill of Rights takes a strong stance against these inequities by requiring data collection to better understand the experiences of vulnerable and equity-denied groups. This data will be used to inform policies that address discrimination and ensure proportionality in rental practices. For example, landlords will be required to consider factors like timing and fairness when issuing rent increases or eviction notices, especially when dealing with renters on fixed incomes, those with disabilities, or families with school-aged children.
The blueprint calls for updated provincial legislation to prevent discrimination based on family status or pet ownership, which are common reasons for denying rental applications. These measures are vital in creating a rental system that is equitable and inclusive.
While this is welcome, it is also a challenge to implement and enforce. Some might also argue that pet ownership is a privilege and not a right. In this case, the federal government is trying to win points with potential voters but has little direct influence over regional policy.
Principle 4: Safeguarding the System
A well-functioning rental system requires robust regulations and enforcement mechanisms to protect tenants from exploitation. Without these safeguards, unscrupulous landlords can take advantage of vulnerable tenants, especially in markets where housing is scarce. The federal government acknowledges that while provinces and territories are responsible for many aspects of rental housing regulation, there is a critical need for stronger federal oversight and collaboration to ensure tenant protections are upheld.
The federal government has committed to supporting tenants through initiatives like the Tenant Protection Fund, which provides legal resources and advocacy for renters. It also calls on provinces and territories to introduce compulsory training for property owners and managers to ensure they are aware of their responsibilities. Additionally, tenants will be educated about their rights before signing leases, closing a significant knowledge gap that has long disadvantaged renters.
Furthermore, the blueprint emphasizes the need for formal processes to address tenant complaints, close regulatory loopholes, and strengthen mediation mechanisms. Bad-faith actors, such as landlords who repeatedly violate tenant rights, will face meaningful penalties. This proactive approach to enforcement is intended to deter future misconduct and create a fairer rental system.
This aspect of the blueprint is unlikely to move the needle substantially; however well funded legal resources and advocacy could help to shine a light on rogue landlords with the most unsavoury industry practices.
Moving Forward: The Federal-Provincial Partnership
One of the central challenges in implementing the Renters’ Bill of Rights is the division of responsibility between the federal and provincial governments. While the federal government can set out national standards and provide funding, it is ultimately up to provinces and territories to enact the necessary legislation and ensure tenant protections are enforced. Recognizing this, the federal government has tied future housing funding to provincial compliance with the Renters’ Bill of Rights. Provinces and territories will be required to report annually on their progress in advancing tenant rights and addressing housing inequities.
The introduction of the Renters' Bill of Rights is just the beginning. The blueprint will evolve over time, with input from all levels of government, organizations, and tenants. By fostering collaboration and commitment across jurisdictions, the federal government hopes to build a national consensus for a fairer, more transparent, and more secure rental system.
More virtue-signalling than substance
The Blueprint for a Renters' Bill of Rights represents a step forward in Canada’s ongoing effort to address the housing crisis.
The federal government is right to draw attention to key issues with affordability, fairness, transparency, equity, and system safeguards.
However, the true impact of this bill will depend on the actions taken by provincial and territorial governments and the strength of enforcement mechanisms put in place. While the federal government can set a national “wish list” of standards and provide funding, it is ultimately up to provinces and territories to enact the necessary legislation and enforce tenant protections.
The federal government has tied funding to cooperation, but they wield a “carrot” and no “stick”. Even if provinces agree on the core principles, they are unlikely to agree on the finer details. National standards are very far away on the horizon. Don’t hold your breath waiting.
While challenges remain, especially in a housing market as complex as Canada’s, the Renters' Bill of Rights offers a vision of a future where every Canadian has a safe, affordable place to call home—a fundamental human right.
