On the supply side, rental providers have responded to the enhanced rebate announced in September 2023. It was also a market where lending capital was relatively inexpensive. There was a high demand for rental units. The industry responded by building more units, to the point where today—and for the last year or year and a half—there is an oversupply of current rental units in large cities and smaller communities.
The affordability problem is another question. It's not just about the ability to supply units. You need to supply them at affordable rents, where the GST and any taxation, development cost charges or levies play a big role. There have been studies showing that approximately 30% of the cost of delivering rental units in Canada can be attributed to some kind of fee or taxation.
I applaud the enhanced rental rebate. I would love for that rebate to apply to rental units coming to market today and—