The Ontario government is holding the rent increase guideline for 2024 at 2.5 per cent, well below the average inflation rate of 5.9 per cent, said a government statement.
The rent increase guideline is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board.
The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year. Under the Residential Tenancies Act, the guideline is capped at 2.5 per cent to help protect tenants from rising interest rates that would result in higher rent. Without the cap, the recent rate of inflation would have resulted in an increase of 5.9 per cent in 2024, said the statement.
“Our government knows the cost of living continues to be a challenge for many Ontarians, including renters, which is why we are holding the rent increase guideline at 2.5 per cent,” said Steve Clark, Minister of Municipal Affairs and Housing. “This decision builds on the historic tenant protections contained in our recent Helping Homebuyers, Protecting Tenants plan, and demonstrates our commitment to help tenants across the province.”
In 2022, Ontario broke ground on nearly 15,000 new purpose-built rentals, a 7.5 per cent increase from 2021 and the highest number on record. This year, rental starts across the province total more than 8,500 new units, which is a 77 per cent increase over January to May of 2022, the statement added.