Rent caps and housing shortages

Scientists like to point out that correlation is not causation. One thing may not be causing or influencing the other just because they are connected in some way. In our current housing crunch, a group representing landlords says the housing crunch in Nova Scotia can be blamed by the rent cap. Kevin Russell says a rental increase to just 2 percent a year has had a big impact because inflation is running at seven or eight percent. He says many landlords took advantage of a red hot real estate market and cashed out with units being sold and converted to permanent housing. And he says the Investment Property Owners Association warned the government that would put pressure on an already low vacancy rate. And it turns out, they were right.