BC rent cap lowered in line with inflation to 2.2% for next year

The BC government has announced the annual allowable rent increase for 2027 will be lowered from 2.3% in 2026 to 2.2% in 2027. 

Prior to 2019, when the rent cap was implemented, renters in BC faced an additional 2% rent increase on top of inflation. 

This allowable increase cost renters hundreds of dollars in additional rent. 

The Province says that if their rent cap that is tied to the rate of inflation was not put in place, allowable rent increases would have reached 5.4% by 2023 and 5.6% in 2024.

The new rate of 2.2% for renters’ maximum annual allowable rent increase takes effect on January 1st, 2027. Until that time, the 2.3% rate is still in effect. 

“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 BC find housing that fits their needs and budgets.”

She also noted that by increasing the housing supply, cracking down on illegal short-term rentals and limiting foreign investment in the housing market, the Province has seen a 4.5% decrease in overall average rents.

The reason why the BC government is announcing the 2027 rent cap rate in August is to allow landlords the necessary time to provide their tenants notice of their rent increase, which is a minimum of three months. 

In BC, landlords are only permitted to increase their tenants’ rent once every 12 months. Any increase must be at or below the allowable rent increase limit.

The rent increase rate does not apply to commercial tenancies, non-profit housing tenancies where rent is geared to income, co-operative housing and some assisted-living facilities.