Ontario Capping Rent Increases at the Rate of Inflation
Province protecting tenants with 2.1 per cent cap, the lowest in four years
he Ontario government is protecting tenants by capping rent increases for 2026 at 2.1 per cent. This cap is based on Ontario’s Consumer Price Index, a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year.
“Our government knows tariffs and economic uncertainty are creating challenges for many people in Ontario, including renters, which is why we are capping rent increases for 2026 at 2.1 per cent,” said Rob Flack, Minister of Municipal Affairs and Housing. “This cap is the lowest in four years, which demonstrates our commitment to protecting tenants across our province as we continue searching for ways to keep costs down across the province.”
From January 2025 to May 2025, Ontario saw 6,977 rental starts, an increase of 25 per cent compared to the same period in 2024. This is the second-highest level of rental starts on record for this time of the year, after 2023, and showcases the government’s plan to get shovels in the ground to build more homes, faster.
