Study finds Manitoba's Rent Assist program did not cause substantial rent increases

A new analysis of Manitoba's Rent Assist program, one of the largest renter benefits in Canada, found no evidence it has caused substantial rent increases since its introduction. The Canada Mortgage and Housing Corporation-supported assessment compared low-end market rents to higher market rents. The report stated, "there is no evidence to support the idea that Rent Assist led to any substantial increase in rents" since 2014. The analysis suggests stronger rent regulation policies are still needed to protect affordability in rooming houses.

Manitoba's program shows how benefit design can successfully mitigate rent inflation, according to a policy brief from Maytree. Rent Assist benefits are not tied to a particular rental unit and are not based on the actual rent a tenant pays. Landlords have no way of knowing which tenants receive the support or how much they get. Tenants are also not required to spend the benefit specifically on rent, meaning it can be used for other essentials like food.

The policy brief argues that, just as the Canada Child Benefit has not led to rapid inflation in the cost of diapers, a well-designed income support for renters need not lead to inflation in rent. Manitoba's existing rent regulation policies also offer protection by limiting annual rent increases in both occupied and vacant units. Contrary to some beliefs, this kind of regulation is not an obstacle to new rental supply, the brief notes. A recent CMHC study found that, among Canadian rental markets, there was no significant evidence that rental starts were lower in markets with rent control compared to those without it. Maytree's own Canada Renters Credit proposal uses similar design concepts to limit rent inflation. The organization says pairing such a benefit with stronger rent regulations offers a viable path to more affordable market rental housing.