Market Insights with James Leung
The Week Ahead: June 22–26, 2026
Housing affordability remains one of the most pressing economic challenges facing Canadians. As policymakers search for solutions to support renters, debates continue around the effectiveness of rent control policies and alternative approaches that may improve affordability while preserving housing supply.
In this week's market outlook, James Leung highlights commentary from CIBC Deputy Chief Economist Benjamin Tal, who examines the long-term implications of rent control policies and explores whether targeted tax relief may offer a more effective way to support renters while encouraging housing development.
3 Key Takeaways
Rent Control Can Create Unintended Consequences
While rent control is often introduced to improve affordability, economic evidence suggests that limiting rent increases can reduce rental housing supply, discourage new development, and weaken property maintenance incentives. Over time, these effects may contribute to greater housing shortages and reduced market mobility.
Housing Affordability Depends on Supply
Improving affordability ultimately requires increasing the supply of rental housing. Policies that encourage construction and investment in new rental developments may provide more sustainable long-term solutions than price controls alone.
Tax Policy May Offer Meaningful Relief
Benjamin Tal suggests that allowing renters to deduct a portion of their rent from taxable income could provide immediate support while improving fairness within the housing system. A carefully structured approach could help low- and middle-income Canadians without creating some of the market distortions associated with rent control.
Quote of the Week
"Sustainable affordability comes from creating more opportunities for people to access housing, not simply limiting prices within a constrained market."
— James Leung
Senior Wealth Advisor & Portfolio Manager, CIBC Wood Gundy
Co-Founder & Director, 6ix Wealth Foundation
About the Contributor
James Leung
Senior Wealth Advisor & Portfolio Manager, CIBC Wood Gundy
Co-Founder & Director, 6ix Wealth Foundation
James shares market commentary, economic observations, and wealth management perspectives to help investors and business leaders better understand the trends, opportunities, and developments shaping today's financial landscape.
Read the Original Commentary
This article is based on James Leung's weekly market outlook originally shared on LinkedIn and commentary from CIBC Capital Markets.
Disclaimer
This article is intended for informational and educational purposes only and should not be considered financial, investment, legal, or tax advice. Readers should consult qualified professionals regarding their individual circumstances before making financial decisions.