Toronto — By keeping the 2024 rent increase guideline at 2.5%—significantly lower than the 5.9% average inflation rate—the Ontario government is bolstering tenant rights. The maximum annual rent increase that a landlord may impose on the majority of tenants without receiving permission from the Landlord and Tenant Board is set down in the rent increase guideline.
The recommended practise is based on Statistics Canada’s calculation of the Consumer Price Index for Ontario, which accounts for inflation and reflects economic conditions over the previous year. To help safeguard tenants from rising interest rates that would result in higher rent, the Residential Tenancies Act caps the guideline at 2.5%. Without the restriction, the current inflation rate would have caused a rise of 5.9% in 2024.
“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 percent,” said Steve Clark, Minister of Municipal Affairs and Housing. This choice illustrates our dedication to assisting tenants across the province and builds on the historic tenant protections outlined in our recent Helping Homebuyers, Protecting Tenants strategy.
The province of Ontario broke construction on the most purpose-built rentals ever in 2022—nearly 15,000—a 7.5% increase from 2021. More than 8,500 new rental units have been started in the province so far this year, a 77% increase over January to May of 2022.