Ontario sets rent increase guideline for 2023 at 2.5%, below inflation

The Ontario government says landlords can raise rent by a maximum of 2.5 per cent in 2023 without approval of the Landlord and Tenant Board.

The province announced its rent increase guideline Wednesday for next year, which will apply to rent increases taking effect between Jan. 1 and Dec. 31, 2023.

“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,” said Steve Clark, Minister of Municipal Affairs and Housing.

“We continue to look for ways to make homes more attainable for hardworking Ontarians, while making it easier to build more houses and rental units to address the ongoing supply crisis.”

The Ontario government says the rate applies to the majority of rental households but it doesn’t apply to units that were first occupied after Nov. 15 2018, vacant units, community housing, long-term care homes or commercial properties.

Landlords can also set higher rents with approval of the Landlord and Tenant Board.

Interim New Democrat Leader Peter Tabuns says the 2.5 per cent maximum is still higher than many tenants’ annual pay increases, and such increases will leave people hurting across Ontario.