Ontario Caps 2023 Rent Increase At 2.5 Per Cent
Ontario is more than doubling the maximum rate a landlord can raise a tenant’s rent next year – marking the highest rent increase guideline in the province in a decade.
In a news release issued Wednesday, the province said it applies to “the vast majority” — around 1.4 million — of rental homes covered by the Residential Tenancies Act.
The last time Ontario’s rent increase guidelines reached 2.5 per cent was in 2013.
“As Ontario families face the rising cost of living, our government is providing stability and predictability to the vast majority of tenants by capping the rent increase guideline below inflation at 2.5 per cent,” Steve Clark, Minister of Municipal Affairs and Housing, said in a statement on Wednesday.
The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada that uses data that reflects economic conditions over the past year.
This follows an unprecedented move from the Bank of Canada earlier this month, increasing its key interest rate by half a percentage point to 1.5 per cent for the second time in two months.
If Ontario’s rent increase matched recent inflation, the 2023 guideline would have surged to 5.3 per cent. “However the guideline is capped to help protect tenants from significant rent increases,” the province said.