CIBC slams Ontario rent controls..

New rent-control rules are “the exact opposite” of what is needed to deal with housing affordability problems in Toronto, Canadian Imperial Bank of Commerce economist Benjamin Tal says.

In a new report Tuesday, Mr.Tal urges the Ontario government not to proceed with “alarming” plans to expand rent control protections, saying the Greater Toronto Area needs a significant increase in rental units to help deal with the city’s housing crisis, especially among young families.

“If history is a guide, such policy will mostly hurt the people it’s trying to protect,” Mr.Tal said. “Clearly efforts and funds should be devoted to affordable housing in the GTA, but rent control should be a non-starter.”

The Ontario government announced in March that it is considering “substantive” changes to rent-control rules after hearing complaints from tenants who have faced double-digit rent increases as house prices have soared in Toronto over the past year, leaving more people seeking rental units as an alternative to buying.