ABSTRACT
The low vacancy rate in Toronto and media reports about gouging sparked wide public concern, which in turn led Toronto’s city council to conclude that rent controls were necessary. Most rent control opponents relied heavily on traditional economic arguments outlining the many adverse consequences of controls. The New Democratic Party thought not only that immediate controls were needed to prevent rent gouging but that long-term controls were required to address the ongoing problems that low-income households face in finding suitable and affordable accommodation. The government was well aware of the possible side effects of rent control; these side effects had formed an integral part of the debates leading up to the 1975 policy. The government argued that although rent legislation has smoothed out the impact of inflation on rental increases, it has at the same time discouraged new rental construction, forcing tenants to live in deteriorating conditions with ever-diminishing opportunities to find new and better accommodation.
