Victoria – The Province continues to tie the annual allowable rent increase to inflation at 2.2% in 2027, down from 2.3% in 2026.
“At a time when many people are feeling the impact of rising costs, linking rent increases to inflation helps renters, including seniors and families, meet their housing expenses, while also ensuring landlords can continue providing stable, well-maintained homes for renters for years to come,” said Christine Boyle, Minister of Housing and Municipal Affairs. “Our focus from the start has been on helping people across B.C. find housing that fits their needs and budgets. Thanks to our work to increase housing supply, crack down on illegal short-term rentals and limit foreign investment in the housing market, B.C. has seen a 4.5% decrease in overall average rents.”
Before 2019, renters faced an additional 2% rent increase in addition to inflation, costing the average B.C. family hundreds of dollars in additional rent. If the change had not taken place, allowable rent increases would have reached 5.4% in 2023 and 5.6% in 2024.
The maximum annual allowable rent increase for 2027 takes effect on Jan. 1, 2027. Announcing the increase now provides landlords time to give the required minimum of three months notice of the change so renters can plan ahead. Landlords can only increase rent once every 12 months and any increase must be within the yearly allowable rent increase limit.
The announcement follows a recent report by Rentals.ca that shows provincial initiatives to increase rental housing supply continue to have positive impacts, with average asking rents decreasing by 4.5% overall and 4.1% for purpose-built rentals and apartments in the province. B.C. had five cities in the top 15 cities with the largest year-over-year decreases in rents within purpose-built rentals: Abbotsford (-12.4%), Langley (-7.6%), Coquitlam (-7.3%), New Westminster (-6.6%) and Richmond (-6.1%).
Support for renters, landlords
Since 2017, the Province has been strengthening supports for renters, while ensuring landlords can address tenancy issues. Changes include creating more transparency for landlords and renters by publishing the outcomes of monetary orders. The annual renter’s tax credit provides $400 a year to renters with low and moderate incomes.
B.C. was also 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 has helped preserve more than 2,000 existing affordable rental units in communities throughout the province. In addition, 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.
Quick Facts:
If landlords choose to increase rent, they must abide by the Residential Tenancy Act and provide three months notice to tenants using the correct Notice of Rent Increase form.
The maximum allowable rent increase is defined by the 12-month average percentage change in the all-items Consumer Price Index for B.C. ending in July of the year prior to the calendar year when the rent increase takes effect.
The 2027 maximum increase for manufactured home park tenancies will also be 2.2%, plus a proportional amount for the change in local government levies and regulated utility fees.
The rent increase does not apply to commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities.
