Annual Rent Increase Falls For Second Straight Year Capped At Inflation

The Province says the annual allowable rent increase in 2026 will come in at 2.3%, again tied to inflation. The cap is down from this year’s rate of 3%.

“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%, below the increase to inflation of 5.6%.

Prior to 2018, renters could face an additional 2% 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, the Province says landlords have the time they need to give the required minimum of three months’ notice of the change for renters to plan ahead.

To see the full release, visit Government of British Columbia.