The Power of Eviction Prevention: How BC Rent Bank Saves Renters and Government $27.5 million

Did you know that for every dollar invested in BC Rent Bank, there is a return of $5 in savings for renters and the government?

A new report shows that $1.9 million in emergency financial assistance went on to save renters $16.1 million in costs from rent hikes, moving and storage, and lost possessions, while the government saved $11.4 million through lower public expenditures for health care, child welfare, and housing services. That’s an estimated $27.5 million in savings!

Evictions represent a profound disruption in the lives of renters. Eviction negatively impacts mental health, family stability, and community ties. As housing affordability continues to be a pressing issue in British Columbia, BC Rent Bank serves as a crucial tool in maintaining housing stability for vulnerable populations.

Today BC Rent Bank is releasing a new report, Why Eviction Prevention Matters: The Social and Economic Benefits of BC Rent Bank in British Columbia. It looks at the costs to renters and government that are avoided when evictions are prevented.

BC Rent Bank’s Network: A Lifeline for Renters

Evictions have significant social and economic consequences. Mental health can be affected by housing instability, and as renters are forced out of their neighbourhoods, the fabric of community disintegrates. That’s why BC Rent Bank’s individualized support targets eviction prevention.

In 2021, we completed a Housing Stability Survey Report that looked at whether or not assistance provided by rent banks was successful in helping people stay housed.

Highlights from the 2021 Impact Survey

• 94% of respondents either maintained or improved their housing situation.
• 91% of respondents credited their continued housing stability to rent bank assistance.
• 61% of respondents said they would have faced homelessness had they not received assistance.

Is Rent Bank Support Having the Desired Effect?

We’ve built on the 2021 survey results in our latest 2024 study, to get to the heart of rent bank support’s effectiveness.

We’ve considered the following questions:

• How would an eviction have affected program participants if they had been unable to keep their housing without rent bank assistance?
• What costs were likely avoided?
• Are the benefits of preventing evictions through the BC Rent Bank network higher than the costs of administering the program and the value of financial assistance?
• How does eviction prevention support other Government of BC mandates?
• Does continued investment in BC Rent Bank make sense from a public perspective?

The report’s key takeaway is a cost estimate of the economic benefits of supporting households to maintain their housing security due to rent bank assistance in the most recent fiscal year (2023/2024).

Next, we highlight how investing in rent banks reduces the financial burden on government services and saves tenants from costs like rent increases, lost possessions, and moving and storage services. Beyond financial impacts, we also reflect on what housing stability means for individuals and families. After all, preventing evictions is not just about keeping people in their homes; it’s about preserving dignity, fostering community, and ensuring that people can thrive.

“I can’t say enough how profoundly this program helped me… Six months later I am stable again and it was just a moment in time I needed help. A moment that could very well have made myself and my family homeless.” —Rent bank loan recipient

The Path Forward for Housing Stability

Our report references sources such as the BC Eviction Mapping project by First United and CMHC’s report, The Lived Experience of Evictions in Canada.

As we forge ahead, we believe it is crucial to recognize the social and economic benefits of investing in eviction prevention. The results we’re sharing show the continued need for BC Rent Bank’s services.

Read the full report below to learn the detailed results, and visit our blog to learn more about our housing stability ideas and initiatives.