If low income rental housing is an urgent issue in Canada why don't we:
A) Rent Control all dwellings under 1100 sq ft.
B) Make all rental income tax free or low tax.
C) Make all income from speculative selling of dwellings under 1100 sq ft subject to steep capital gains tax.
Eliminate rent inflation, incentivize creating rental units, de-incentivize the speculative market on potential rental units.
@mike be cautious with that first one. 1100 sq ft is a pretty ideal sized for low income family housing. The consequence of this would be to have developers ensure that new units are 1200sq ft or far less then 1100sq ft. Laws like this have the effect of pushing development away from the dividing line because for marginally more cost they get far less restrictive assets.
@antares Good point. My hope would be demand for these rental units would increase due to the major tax incentives.