Reviewing the systems underpinning financialization: towards a rights-based approach
Submission to the National Housing Council Review Panel on the Financialization of Purpose-Built Rental Housing
Update
On May 27, 2024, the the review panel submitted its report on the Financialization of Purpose-Built Rental Housing to the Minister of Housing, Infrastructure and Communities, the Honourable Sean Fraser. Read our summary here.
The Canadian housing landscape has undergone profound changes in recent years, with far-reaching consequences for renters and communities across the country.
This submission summarizes the challenges posed by financialization in rental housing and highlights the urgent need for policy reforms. Financialization, driven by market forces and regulatory changes, has created an environment where housing is increasingly viewed as a source of financial gain, rather than a fundamental human right for individuals and families.
We delve into the key issues at hand, offering data-backed analysis, and a series of recommendations designed to guide policymakers, advocates, and stakeholders toward a more rights-based housing future.
In this submission, you will find:
- A description of financialization: We explain what a financialized landlord is, how they’re involved in purpose-built rental housing, and the factors that facilitated their involvement in this sector.
- A summary of rising concerns for renters: We highlight concerns with financialization raised by advocates and tenants, including the use of above-guideline rent increases (AGIs) for profit maximization.
- An analysis of trends in the treatment of rental housing as a commodity: We explore broader trends that are eroding affordable rental housing, including growth in the secondary rental market and weak rent control regulations, such as vacancy de-control, which can incentivize rent hikes beyond legal limits.
- A discussion of transparency issues: We discuss the lack of transparency in property ownership data, making it challenging to understand the dynamics of the rental housing market.
- An assessment of government housing policy responses: We examine how governments in Canada have failed to create a “whole-of-government” approach to housing, which exacerbates the challenges faced by renters.
- Policy recommendations: Guided by the principles of the right to adequate housing, we conclude by recommending that the federal government work with other governments to increase the supply of affordable rental housing, improve support for lower-income renters, strengthen rent control, and promote transparency in property ownership data and reporting.
Explore our submission to learn more about the financialization of rental housing in Canada and the steps needed to create a more equitable housing future for all.