Ontario's rent increase guideline for 2023 is 2.5 percent.
The province has set its 2023 rent increase guideline below inflation.
Minister of Municipal Affairs and Housing Steve Clark says the rate has been set at 2.5 percent, in order to provide stability to families facing a rising cost of living.
The guideline is based on Ontario's Consumer Price Index, which is a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year.
Due to recent inflation, the calculation would result in a 2023 guideline of 5.3 percent, however, the guideline is capped to protect tenants from sharp increases in rent.
"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," says Clark. "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 guideline applies to about 1.4 million rental households covered by the Residential Tenancies Act.
However, it doesn't apply to units occupied for the first time after November 15th, 2018, vacant residential units, community housing, long term care homes or commercial properties.
Landlords may only raise rent prices if tenants are given at least 90 days notice using the correct form, and at least one year must have passed since the first day of tenancy or the last rent increase.