BC caps rent increase at 2% next year amid soaring inflation
BC landlords will only be able to raise rent for existing residential tenants by 2% in 2023.
Premier John Horgan announced the new rent cap during a news conference on Vancouver Island, saying it’s a response to improve affordability in the province amid “unprecedented inflation.”
“Unfortunately during this extraordinary time an inflationary increase in rent would be debilitating,” Horgan said.
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BC landlords used to be able to raise rents 2% plus inflation, but Horgan’s NDP government changed that to only allow rent increases tied to inflation.
But as Canada emerges from the COVID-19 pandemic inflation rates have been soaring to levels not seen in nearly 40 years. The Consumer Price Index rose by a startling 8.1% in June, according to Statistics Canada.
The rate of inflation slowed down in July, rising 7.6% year-over-year from July 2021, but that’s mostly due to a dip in gas prices.
About a third of all households in BC are renters. Horgan’s government still hasn’t delivered its renter subsidy that was promised during his latest election campaign.
The allowable 2% increase for 2023 is up from 1.5% in 2022 and 0% in 2021.
Here is the recent history of BC’s previous maximum rent increases:
- 2022: 1.5%
- 2021: 0%
- 2020: 2.6% (before March 18, 2020)
- 2019: 2.5%
- 2018: 4.0%
- 2017: 3.7%
- 2016: 2.9%
- 2015: 2.5%
- 2014: 2.2%
- 2013: 3.8%
- 2012: 4.3%
- 2011: 2.3%
- 2010: 3.2%
- 2009: 3.7%
- 2008: 3.7%
- 2007: 4.0%
- 2006: 4.0%
- 2005: 3.8%
Horgan unveils $1B inflation relief package
The rent increase cap is part of a slew of aids to help British Columbians battle a rising cost of living.
Horgan also announced the Climate Action Tax Credit payment, which is rolling out this fall, would be four times as large as initially planned. It will now go up to a maximum of $164 per adult and $41 per child.
The BC Family Benefit (the renamed version of the Child Opportunity Benefit) will also rise by up to $58 per child.
- You might also like:
- Canada's inflation rate slowed down in July, but grocery prices spiked
- BC considers capping rents as inflation threatens to "shock" renters
- Rent prices in Vancouver just had the most dramatic increase of 2022
- The cost of rent in Edmonton is $1,446 cheaper than in Vancouver
- Yet another all-time high: Median rent for a one-bedroom hits $2,400 in Vancouver