The province maintains the rent increase guideline at 2.5% for 2024.

The Ontario government continues to strengthen protections for tenants by keeping the 2024 rent increase guideline at 2.5%, significantly lower than the average inflation rate of 5.9%. The guideline is the maximum increase rate a landlord can apply to most tenants' rent for the year without landlord and tenant board approval.

The guideline is based on the Consumer Price Index in Ontario, an inflation measure calculated by Statistics Canada using data reflecting the economic situation over the past year. Under the Residential Tenancies Act, this rate was set at 2.5% to help protect tenants from interest rate hikes that could lead to higher rents. Without this cap, recent inflation rates would have resulted in a 5.9% increase in 2024.

In this context, Steve Clark, Minister of Municipal Affairs and Housing, said: “Our government recognizes that the cost of living remains a challenge for many Ontarians, including rent, which is why we are maintaining the 2.5% rent increase guideline.”

He added: “This decision builds on tenant protections outlined in our recent plan, ‘Helping Homebuyers, Protecting Tenants,’ and demonstrates our commitment to helping tenants across the province.”

As in 2022, Ontario began operating approximately 15,000 rental units. This record number represents a 7.5% increase compared to 2021. This year, more than 8,500 new rental units have come into operation in the province, representing a 77% increase compared to the period from January to May 2022.