The Newfoundland and Labrador government is resisting calls to come up with rent control legislation, but the minister in charge of housing says he's working on a strategy to deal with the issue.

Residents in booming industrial areas like Labrador West and Clarenville said their rents have skyrocketed. Nancy Bonnell in Labrador City, for example, is currently paying $900 a month for a two-bedroom apartment, but her rent is soon increasing to $2,000.

Groups like the Labrador West Housing and Homelessness Coalition have been pressing government to do something about the rising rental costs.

But Service NL Minister Nick McGrath said rent control legislation could have unintended consequences.

"One of my big fears that I have when it comes to rent control is that a lot of landlords tend to stay away from the properties that would be lower rent. And then they invest their money into condo buildings, for example, and more higher development, high income," he said.

The province recently held public consultations on the issue and is now weighing its options.

McGrath said government is reviewing the rules for rental properties, and he said he hopes to have a new rent control strategy in place in the coming months.