Provincial government reveals 2026 cap on increases, aimed at helping residents maintain affordable housing
British Columbia has announced that landlords will be limited to a maximum rent increase of 2.3% in 2026, marking the second consecutive year of declining allowable increases tied to inflation.
The provincial government revealed Tuesday that the 2026 cap represents a decrease from the 3% maximum allowed in 2025. Minister of housing and municipal affairs Christine Boyle said the measure aims to help residents maintain affordable housing near their employment, schools, and families.
“BC 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,” Boyle stated in a government news release. “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.”
The maximum allowable increase is calculated using the 12-month average percentage change in the all-items Consumer Price Index for BC, ending in July of the year prior to when the rent increase takes effect. This marks the second year the province has used this inflation-based formula.
According to government data, BC capped rent increases at 3.5% in 2024, significantly below the 5.6% inflation rate for that period. Prior to 2018, renters faced potential increases of inflation plus an additional 2%, which cost the average BC family hundreds of dollars annually.
The new increase cannot take effect before Jan. 1, 2026. By announcing the rate now, the government provides landlords sufficient time to give tenants the required minimum three months’ notice of any rent changes.
The ministry noted that the inflation-linked approach allows landlords to “invest in their properties to keep rental homes on the market” while protecting tenants from excessive increases.
The rent increase policy does not apply to commercial tenancies, non-profit housing where rent is geared to income, co-operative housing and some assisted-living facilities. For manufactured home park tenancies, the 2.3% increase will include a proportional amount for changes in local government levies and regulated utility fees.
Landlords choosing to implement increases must follow the Residential Tenancy Act requirements, including providing three months’ notice using the correct Notice of Rent Increase form. Rents cannot be increased more than once within a 12-month period.
Since 2017, the province has implemented various renter protections, including preventing illegal renovictions and providing a $400 annual tax credit for renters with low to moderate incomes. BC was also the first jurisdiction in Canada to offer provincewide rent bank services with interest-free loans for tenants facing financial difficulties.
The Residential Tenancy Branch has reduced dispute resolution wait times for unpaid rent and utilities from three months to one month, benefiting both renters and landlords.
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