The B.C. government has set the maximum allowable rent increase for 2026 at 2.3%, marking the second consecutive year the cap has been tied to inflation.
The increase, announced Tuesday by the Ministry of Housing and Municipal Affairs, is down from 3% in 2025 and will take effect no earlier than Jan. 1, 2026. The province said the change aims to protect renters from steep cost hikes while still allowing landlords to maintain their properties.
“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,” Housing Minister Christine Boyle said in the news release. “We’re continuing to cap rent increases, linking them to inflation, to reduce housing costs for seniors, families and individuals.”
The annual cap is based on the 12-month average change in the B.C. Consumer Price Index up to July of the previous year. For manufactured home park tenancies, the maximum increase will also include a proportional amount to cover local government levies and regulated utility fees.
This is the latest step in a series of renter protections introduced since 2017. The province has implemented measures against illegal renovictions, offered a $400 renter’s tax credit for low- and moderate-income households, expanded rent bank services with interest-free loans, and created the Rental Protection Fund to preserve affordable housing.
Landlords must provide tenants with three months’ written notice before raising rents, and cannot issue more than one increase in a 12-month period. The new cap does not apply to commercial rentals, non-profit housing tied to income, co-operative housing, or some assisted-living facilities.
The province said recent changes at the Residential Tenancy Branch have also reduced dispute resolution wait times from three months to one for unpaid rent and utilities.
