Winnipeggers hunting for a new apartment may see rentals listed much higher than the last time they moved.
In one of the most affordable cities in Canada, the average cost of rent continues to climb, leaving advocates concerned how tenants will manage amid high inflation. They’re pushing for solutions, including non-profit housing and tightened rent control.
Rising rents are especially concerning for those whose incomes aren’t keeping up, University of Winnipeg professor Shauna MacKinnon said Thursday.
“Their situations aren’t getting better, so it’s becoming quite dire,” McKinnon, who chairs the department of urban and inner-city studies, told Global News.
Year over year, rents in Winnipeg are up 5.3 per cent for one-bedroom apartments and 11.4 per cent for two-bedroom units, according to a January report from Rentals.ca — despite Manitoba’s rent increase guideline being set at zero per cent in 2022 and 2023.
Exceptions within the province’s Residential Rent Regulation mean it doesn’t apply to a number of properties, including those built in the last two decades, MacKinnon said.
Units priced at or above $1,510 are also exempt, the regulation states.
“There’s very little, minimal supply that actually falls under rent regulations,” MacKinnon said.
“You’ve got ones being exempt because of the age of the building, and then you’ve got the exemptions because people are applying for above guideline increases. What are you left with?”
Provincial data suggests the Residential Tenancies Branch (TBD) approved above-guideline rent increases for 25,381 rental units — more than 58 per cent more than the year before — at an average hike of 9.8 per cent in 2022. The applications the TBD decided on last year had requested an average 12.3 per cent increase.
From 2018 to 2022, the cost of rent rose above guideline for an average 23,521 units each year.
“The Residential Tenancies Branch thoroughly reviews each application for above-guideline rent increases (AGRI) to ensure the expenses reported by a landlord are supported by financial documentation and are reported in accordance with The Residential Tenancies Act, as rent increases must be cost-justified,” a provincial spokesperson said in an emailed statement Thursday.
And most applications are approved, Allison Fenske with the Public Interest Law Centre told 680 CJOB Thursday.
“That’s certainly been our experience,” Fenske said.
“There are ways that tenants can work to dispute those increases,” she said. “Unfortunately, folks find themselves in positions where they’re no longer able to afford their housing, and that’s a significant concern.”
Avrom Charach with the Professional Properties Managers Association says landlords are having to keep up with rising costs, from renovations to utilities.
“Everything we use — the appliances, drywall, screws, wire — everything has become more expensive, and if it hasn’t become more expensive in and of itself, getting it to Canada became more expensive,” Charach, who serves as the PPMA’s spokesperson, told Global News Thursday.
“All the people who complain about their landlord raising the rent at a usurious manner have to understand, a landlord can only raise the rent with (the) government’s permission,” he said. “We’re just trying to make a living like everyone else.”
Non-profit housing and tightened rent control could provide solutions: advocates
Christina Maes Nino finds the rate at which rents are climbing concerning.
“I understand that rents do need to go up, and even the non-profit sector is saying that they need to go up,” said Maes Nino, who serves as the executive director of the Manitoba Non-Profit Housing Association.
However, the cost of rent is outpacing income by nearly double as the supply of affordable housing shrinks, she continued.
“In the past five years, we lost about 10,000 rental units that are at the $750 or less rent rate,” Maes Nino said. “That’s what’s considered affordable for about 40 per cent of renters in the province.”
“Those folks are really struggling. If they’re struggling with rent, that means they’re struggling with food. They’re struggling with medication, and they’re often at risk of homelessness, and the solution to that is to invest in more affordable housing options.”
Non-profit housing offers more stable housing over time and could play a part in housing solutions, she said, despite only about 100 to 200 not-for-profit units being added to the rental supply each year.
“There isn’t an investment group or an investor waiting for profits to go back to them,” Maes Nino said “Any additional funds go back into the building and typically is meant to keep the rents as low as possible for those who need it most.”
Meanwhile, MacKinnon says the province’s Residential Rent Regulation needs more teeth.
“We need to get back to strengthening them, so they actually are meaningful so that people are, you know, protected,” she said.
While still increasing, rent growth is expected to slow down slightly in the coming year.