On Campus

I had to pay for this?

Rent controls a poor policy to bring about positive change

The Canadian Federation of Students, in their infinite wisdom, is advocating rent controls in Corner Brook.

Rent controls are, of course, wrongheaded and self-defeating policies, as any introductory microeconomics textbook loves to point out. If you force landlords to charge below-market rates, it easily stands to reason that the supply of rental properties will decrease — why build more housing if you can earn a greater return elsewhere? — and the problem only gets worse.

Conversely, letting a couple of years pass with high rental rates will incentivize property owners to expand the stock of rental housing, which will bring the price back down. Problem solved.

What really gets me though, is that while a student at Memorial, I was forced to pay dues each semester to support the people who spout this nonsense.

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