The discourse of housing committees is hurting Quebec

In its opinion letter published on April 25, the Regroupement des comités logement et associations des locataires du Québec (RCLALQ) draws on several targets to denounce what they consider to be injustice towards Quebec’s tenants. However, certain affirmations are obvious contradictions, especially when one analyzes the figures rigorously.

The RCLALQ claims that rents increase faster than inflation. What inflation are they referring to? Inflation in general, the one slowed down for years by the gasoline price drop? It would be more logical to compare the evolution of rents with the inflation of components that constrain real estate: exploding municipal taxes, unpredictable insurance premiums, management expenses, as well as the hourly wages of construction labour, in net progression.

As surveyed by CMH, the average rent for a 4 ½ dwelling has increased annually from 1.5% to 2.0% over a 25-year period, in regards to the province’s principal cities. This includes the more expensive new buildings as well.

What if we talked about income inflation? In 1996, the average after-tax income of renter households was $21,400 compared to $35,800 in 2015 (the last year it was published by Statistics Canada). This represents an average annual increase of 2.7%.

Rents are now the lowest amongst the ten Canadian provinces, while Québec was in 8th place a few years ago. In 2017, a 4 ½ rented for $751, 36% less than the other nine provinces’ average. Is this what the RCLALQ calls "the high cost of rents"? In addition, 51% of Quebec renters chose to live alone, according to the 2016 Census compared to 41% in the rest of the country. Do they have all the means to do so?

In one of its press releases, RCLALQ says that rents increased by 46% between 2001 and 2016. That's 2.6% per year. According to a somewhat more official source, herein Statistics Canada, rents have evolved on average 1.2% per year during this period. It is important to know that when a landlord asks the Régie du logement to fix the rent, the court grants him an indexation for the rent portion representing net income and management fees of the building. According to the by-law, this indexation corresponds to the general rent increase rate in Quebec. The choice of a reliable rent indicator is very important because it is a determining factor in the calculation results. Since the increase rate mentioned by the RCLALQ would be more generous than the one currently used for setting rent, would the latter accept CORPIQ's invitation to jointly ask the Régie du logement to now favour these numbers?

How does such a small group of activists like the RCLALQ manage to harm Québec? On the question of rents as well as for the legal delays at the Régie du logement, RCLALQ’s official discourse maintains and even exaggerates the differences between landlord and tenant. However, it provides Québec’s government with the best excuse for inaction in order to maintain a so-called "balance". Consequence: no reform of the Régie du logement has taken place, no measures to preserve rental buildings’ heritage have been put in place. Tenants, homeowners and Québec in its whole are all at lost. The only gain is political.

Hans Brouillette
Director of public affairs
CORPIQ

Click here to read the opinion letter of the Regroupement des comités logement et associations des locataires du Québec (in French)