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The province has tied the annual allowable rent increase to inflation at 2.3 per cent in 2026, down from 3 per cent in 2025.
Photo by Jaana Björk
Annual rent increase falls for second straight year capped at inflation
Published 10:20 PDT, Thu August 28, 2025
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More people will be able to stay in an affordable home near their jobs, schools and loved ones as the province ties the annual allowable rent increase to inflation at 2.3 per cent in 2026, down from 3 per cent in 2025.
“B.C. is an extraordinary place, but with economic uncertainty and rising costs, people are struggling to find a place to live that fits in their budget,” said Christine Boyle, Minister of Housing and Municipal Affairs. “We’re continuing to cap rent increases, linking them to inflation, to reduce housing costs for seniors, families and individuals, protecting them from unfair hikes. At the same time, this rent increase allows landlords to invest in their properties to keep rental homes on the market.”
This is the second year in a row that the maximum allowable increase is tied to the Consumer Price Index. In 2024, the province capped rent increases at 3.5 per cent, well below the increase to inflation of 5.6 per cent. Prior to 2018, renters could face an additional 2 per cent rent increase on top of inflation, costing the average B.C. family hundreds of dollars in additional rent.
The maximum annual allowable rent increase for 2026 cannot take effect prior to Jan. 1, 2026. By announcing the increase now, landlords have the time they need to give the required minimum of three months’ notice of the change for renters to plan ahead.
Since 2017, the province has been strengthening supports for renters, while ensuring landlords can take action on problematic tenancies. Changes have helped prevent illegal renovictions and the annual renter’s tax credit provides $400 a year to renters with low and moderate incomes.
As well, B.C. was the first province or territory in Canada to provide provincewide rent bank services with interest-free loans for tenants facing urgent financial hardships. The Rental Protection Fund helps preserve existing affordable rental housing in communities throughout the province. More families and seniors with low incomes are supported by this year’s enhancements to the Rental Assistance Program and Shelter Aid for Elderly Renters program.
Renters and landlords are both benefiting from new changes at the Residential Tenancy Branch, which have reduced wait times to resolve disputes for unpaid rent and utilities from three months to one.
Changing landlords’ requirements for holding onto tenants’ abandoned property and providing landlords and renters with more guidance to help them navigate hearings are reducing risk for both renters and landlords and helping to speed up resolutions when someone breaks the rules.
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