Alberta government rejects NDP proposal for temporary rent caps insisting they 'don't work'

NDP MLA Janis Irwin speaks at a press conference in Edmonton on January 17, 2024. (Source: NDP)

NDP MLA Janis Irwin's attempts to bring temporary rent caps to Alberta as an affordability measure were quickly dismissed by the province's UCP government Wednesday.

Irwin has proposed Bill 205: The Alberta Housing Security Act to help address what she and many others have called a "housing crisis" in Alberta and beyond.

It calls for an emergency rental cap of two per cent for two years. After that the rate would be tied to inflation for two more years.

She also wants to see the government set housing targets and detail that progress.

"My office regularly receives emails from everyday Albertans who are facing rental increases of 20, 30, even 50 per cent," Irwin said.

"This is forcing families to stretch their household budgets to the breaking point, or make incredibly hard choices between necessities."

The NDP quoted stats saying Edmonton rents increased an average of 13.5 per cent last year, to $1,495 per month on average.

Irwin was joined at a Wednesday press conference by Linda Scott, a Spruce Grove senior, who recently received a 21 per cent rent hike.

"I have lived and worked in Alberta for over 50 years. Now that I am retired and living on a fixed income, steep increases to my bills make me wonder how I will afford things like groceries. I am worried," Scott said.

Irene McDermott, an Edmonton resident and landlord, also attended the press conference. She believes the rent caps Irwin is proposing are fair.

"I understand that [landlords’] costs have increased, mine have as well, but not by amounts that warrant these excessive rental increases on the backs of renters," she said of higher mortgage rates and property taxes.

'RENT CONTROL DOES NOT WORK'

Rent control was also something Edmonton Mayor Amarjeet Sohi said he wants to discuss with other orders of government as part of his housing and homelessness emergency, which was approved by city council vote on Tuesday.

Alberta does not have a housing minister, but the leader of its seniors, community and social services ministry panned Irwin's idea on Wednesday.

"Rent control does not work and will ultimately make Albertans homeless," Jason Nixon said in a statement to CTV News Edmonton.

Nixon suggested the solution to high rents is to build more homes in Alberta.

He said Premier Danielle Smith has instructed him to work on an "affordable and attainable home ownership and rental strategy that focuses on incentivizing the construction of new rental units and homes."

"Construction of purpose-built rentals is at an all-time high in our province, shutting people out of the rental market and discouraging new construction is not the path forward," Nixon said.

Alberta's latest budget allocates $233 million over three years for rent assistance programs, Nixon said, which is currently helping about 12,000 households.

Political scientist Duane Bratt is also suspicious of rent caps as a solution but suspects the NDP may be proposing it so the government will look bad shooting them down.

"Most economists don't agree with rent caps. They believe it benefits those that are already in homes or apartments and it hurts those coming in and it prevents the building of new ones," he told CTV News Edmonton.

"From a political perspective, [Irwin's bill] is not going to pass. So then the question is, are they searching for solutions knowing the conservatives are going to go down on it? So, it's reaching out for that."

Irwin is hosting a consultation event on her proposal on Wednesday night.